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2010





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-K







|x | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2010



| ̈ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------

for the transition period from             to

Commission File Number 1-14105





AVALON HOLDINGS CORPORATION

(Exact name of registrant as specified in its charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Ohio                                                           |  | 34-1863889                          
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)

One American Way, Warren, Ohio
44484-5555

(Address of principal executive offices) (Zip Code)

Registrants telephone number, including area code: (330) 856-8800





Securities registered pursuant to Section 12(b) of the Act:



|                                     |  |                                          
|------------------------------------ |  | -----------------------------------------
|Title of Each Class                  |  | Name of Each Exchange on Which Registered
|Class A Common Stock, $.01 par value |  | NYSE Amex                                

Securities
registered pursuant to Section 12(g) of the Act: None





Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes   ̈    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or Section 15(d) of the Act.    Yes   ̈    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  x    No   ̈

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants knowledge, in
definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ̈    No  x

The
aggregate market value of Class A Common Stock held by non-affiliates of the registrant on March 7, 2011 was $8.6 million. Assuming that the market value of Avalon Holdings Corporations Class B Common Stock was the same as its
Class A Common Stock by reason of its one-to-one conversion rights, the market value of Class B Common Stock held by non-affiliates of the registrant on March 7, 2011 was approximately $3,300. The registrant had 3,191,038 shares of its
Class A Common Stock and 612,293 shares of its Class B Common Stock outstanding as of March 7, 2011.

Documents
Incorporated by Reference



|1. | Portions of the Avalon Holdings Corporation Annual Report to Shareholders for the year ended December 31, 2010 (Parts I and II of Form 10-K).
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------



|2. | Portions of the Avalon Holdings Corporation Proxy Statement for the 2011 Annual Meeting of Shareholders are incorporated by reference herein into Part III.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------









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AVALON HOLDINGS CORPORATION AND SUBSIDIARIES





As used in this report, the terms Avalon, Company, and Registrant mean Avalon Holdings Corporation and its wholly owned subsidiaries, taken as a whole, unless the
context indicates otherwise.





TABLE OF CONTENTS



|           |  |                                                                                       |      |  |    | 
|---------- |  | ------------------------------------------------------------------------------------- | ---- |  | -- | 
|Part I     |  |                                                                                       | Page | 
|           |  |                                                                                      
|Item 1.    |  | Business                                                                              |      |  | 1  | 
|Item 1A.   |  | Risk Factors                                                                          |      |  | 4  | 
|Item 1B.   |  | Unresolved Staff Comments                                                             |      |  | 8  | 
|Item 2.    |  | Properties                                                                            |      |  | 8  | 
|Item 3.    |  | Legal Proceedings                                                                     |      |  | 9  | 
|Item 4.    |  | Removed and Reserved                                                                  |      |  | 9  | 
|           | 
|Part II    |  |                                                                                       |      | 
|           |  |                                                                                      
|Item 5.    |  | Market for the Registrants Common Equity and Related Stockholder Matters             |      |  | 10 | 
|Item 6.    |  | Selected Financial Data                                                               |      |  | 10 | 
|Item 7.    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |      |  | 10 | 
|Item 7A.   |  | Quantitative and Qualitative Disclosures about Market Risk                            |      |  | 10 | 
|Item 8.    |  | Financial Statements and Supplementary Data                                           |      |  | 10 | 
|Item 9.    |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure  |      |  | 11 | 
|Item 9A.   |  | Controls and Procedures                                                               |      |  | 11 | 
|Item 9B.   |  | Other Information                                                                     |      |  | 11 | 
|           | 
|Part III   |  |                                                                                       |      | 
|           |  |                                                                                      
|Item 10.   |  | Directors and Executive Officers of the Registrant                                    |      |  | 12 | 
|Item 11.   |  | Executive Compensation                                                                |      |  | 13 | 
|Item 12.   |  | Security Ownership of Certain Beneficial Owners and Management                        |      |  | 13 | 
|Item 13.   |  | Certain Relationships and Related Transactions                                        |      |  | 13 | 
|Item 14.   |  | Principal Accountant Fees and Services                                                |      |  | 13 | 
|           | 
|Part IV    |  |                                                                                       |      | 
|           |  |                                                                                      
|Item 15.   |  | Exhibits, Financial Statement Schedules, and Reports on Form 8-K                      |      |  | 14 | 
|           | 
|Signatures |  |                                                                                       | 16   | 

Note on
Incorporation by Reference

Throughout this report various information and data are incorporated by reference from Avalons 2010
Annual Report to Shareholders (hereinafter referred to as the Annual Report to Shareholders). Any reference in this report to disclosures in the Annual Report to Shareholders shall constitute incorporation by reference of that specific
material into this Form 10-K.



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PART 1



|ITEM 1. | BUSINESS
|------- | --------

General

Avalon Holdings Corporation (Avalon) was formed on April 30, 1998 as a subsidiary of American Waste
Services, Inc. (AWS). On June 17, 1998, AWS distributed, as a special dividend, all of the outstanding shares of capital stock of Avalon to the holders of AWS common stock on a pro rata and corresponding basis (the
Spin-off). The history and organization of the remaining operations, some of which were contributed to Avalon as a result of the Spin-off, are described below.

In June 1990, AWS purchased approximately 5.6 acres of real estate located in Warren, Ohio on which it constructed Avalons corporate headquarters. In connection with the acquisition of such
property, Avalon Lakes Golf, Inc. (ALGI), a former subsidiary of AWS and now a subsidiary of Avalon, acquired the real and personal property associated with the Avalon Lakes Golf Course, an 18-hole golf course adjacent to the office
property. The corporate headquarters and ALGI were contributed to Avalon by AWS. The Avalon corporate headquarters building has been remodeled to include a clubhouse, restaurant and pro shop for the Avalon Golf and Country Club at Avalon Lakes Golf
Course.

In 1995, American Waste Management Services, Inc. (AWMS) commenced its waste disposal brokerage and
management operations and in 1997, American Landfill Management, Inc. (ALMI) started its captive landfill management operations. Both companies were contributed to Avalon by AWS and now are subsidiaries of Avalon.

In November 2003, TBG, Inc. (TBG), a subsidiary of ALGI, entered into a long-term lease agreement with Squaw Creek Country
Club to lease and operate its golf course and related facilities. As a result of the transaction, Avalon created a newly organized subsidiary, Avalon Golf and Country Club, Inc. (AGCC) which manages all the golf courses and related
operations.

On October 23, 2006, Avalon, through a newly created subsidiary, Avalon Country Club at Sharon, Inc.
(Sharon), completed the acquisition of the Sharon Country Club assets. The primary assets of the Sharon club include the golf course and clubhouse. Avalon renovated the clubhouse and constructed additional recreational facilities and
operates the Sharon facilities as part of its Avalon Golf and Country Club.

Business Segments Information

Avalons business segments are waste management services and golf and related operations. The waste management services segment
includes waste disposal brokerage and management services and captive landfill management operations. The golf and related operations segment includes the operation and management of golf courses, fitness centers, tennis, spa services, dining and
banquet facilities and a travel agency. In 2010, one customer accounted for 12% of the waste management services segments net operating revenues to external customers and 9% of the consolidated net operating revenues. In 2009, no customer
individually accounted for 10% or more of Avalons consolidated net operating revenues.

Waste Management Services

Avalons waste management subsidiaries provide hazardous and nonhazardous waste brokerage and management services
and captive landfill management services. Waste management services are provided to industrial, commercial, municipal and governmental customers primarily in selected northeastern and midwestern United States markets. For the years 2010 and 2009,
the net operating revenues of the waste management services segment represented approximately 78% and 75%, respectively, of Avalons total segments net operating revenues.

American Waste Management Services, Inc. (AWMS) assists customers with managing and disposing of wastes at approved treatment
and disposal sites based upon a customers needs.



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Because waste generators remain liable for their waste, both before and after disposal, they
require assurance that their waste will be safely and properly transported, treated and disposed of. To give customers this confidence, as well as to limit its own potential liability, AWMS has instituted procedures designed to minimize the risks of
improper handling or disposal of waste.

Before AWMS will provide waste brokerage or management services, a potential customer
must complete a detailed waste profile setting forth the amount, chemical composition and any unique characteristics for each type of waste to be handled. Representative samples of the waste are analyzed by a state or federally certified laboratory.
In addition, an AWMS representative generally inspects the process generating the waste, the location where the waste may be temporarily stored or the site of the remediation project producing the waste, and interviews representatives of the
generator familiar with the waste. This inspection, along with the laboratory results, allows AWMS to determine whether the waste is within acceptable parameters for disposal and, if so, what special handling and treatment procedures must be
instituted. If the waste is continuously generated, new representative samples are tested on a periodic basis.

These
procedures are important to both AWMS and its customers because the key to proper handling of waste is accurate identification. Hazardous waste which is not identified as such, and thus, improperly disposed of can result in substantial liability to
the waste generator, the disposal facility, AWMS and potentially to all other waste generators that have used the disposal site. Conversely, waste that could safely and legally be disposed of in a solid waste landfill, but is instead sent to a
hazardous waste facility for treatment and disposal, will result in substantial and unnecessary expense to the generator.

American Landfill Management, Inc. (ALMI) is a landfill management company that provides technical and operational services
to customers owning captive disposal facilities. A captive disposal facility only disposes of waste generated by the owner of such facility. ALMI provides turnkey services, including daily operations, facilities management and management reporting
for its customers. Currently, ALMI manages one captive disposal facility located in Ohio. In addition, American Construction Supply, Inc., a wholly owned subsidiary of ALMI, sells construction mats.

Golf and Related Operations

Avalons golf and related operations segment operates golf courses and related facilities and a travel agency. For the years 2010 and 2009, the net operating revenues of the golf and related
operations segment represented approximately 22% and 25%, respectively, of Avalons total segments net operating revenues.

Avalon Lakes Golf, Inc. (ALGI) owns and operates a Pete Dye designed championship golf course located in Warren, Ohio. ALGI generates revenue from membership dues, greens fees, cart rentals,
merchandise, and food and beverage sales. TBG, a subsidiary of ALGI, entered into a long-term agreement with Squaw Creek Country Club to lease and operate its golf course and related facilities. The lease, which commenced on November 1, 2003,
has an initial term of ten (10) years with four (4) consecutive ten (10) year renewal term options unilaterally exercisable by TBG. In addition to a championship golf course, the Squaw Creek facilities include a swimming pool, tennis
courts and a clubhouse that includes a fitness center, dining and banquet facilities. TBG generates its revenue in the same manner as ALGI, but also generates revenues from tennis. Avalon Travel, Inc., a subsidiary of ALGI, owns and operates a
travel agency which generates its revenue from booking travel reservations.

In November 2003, Avalon formed the Avalon Golf
and Country Club to manage the golf courses and the related operations. Members of the Avalon Golf and Country Club are entitled to privileges at all the facilities. Membership requires payment of annual dues. Members receive several benefits
including reduced greens fees, preferential tee times and discounts on merchandise.

On October 23, 2006, Avalon, through
its subsidiary, Avalon Country Club of Sharon, Inc., completed the acquisition of the Sharon Country Club assets. The primary assets of Sharon include the golf course and clubhouse which includes, dining and banquet facilities, a swimming pool, spa
services and a fitness center. Sharon generates its revenue in the same manner as ALGI but also generates revenues from its fitness center and spa services.



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Although the golf courses continue to be available to the general public, the primary source of revenues is
derived from the members of the Avalon Golf and Country Club. Avalon believes that the combination of these three facilities will result in additional memberships in the Avalon Golf and Country Club. Due to the state of the economy, the ability to
retain current members and attract new members has become more difficult. Although Avalon was able to retain and slightly increase the number of members of the Avalon Golf and Country Club in 2010, as of December 31, 2010, Avalon has not
attained its membership goals. There can be no assurance as to when such goals will be attained and when the golf and related operations will ultimately become profitable. Avalon is continually using different marketing strategies to attract new
members, such as local television advertising and various membership promotions. A significant decline in members could adversely affect the future financial performance of Avalon.

The golf courses are significantly dependent upon weather conditions during the golf season as a result of being located in northeast
Ohio and western Pennsylvania. Avalons financial performance is adversely affected by adverse weather conditions.

Governmental
Regulations

The federal government and numerous state and local governmental bodies are continuing to consider
legislation or regulations to either restrict or impede the disposal and/or transportation of waste. A portion of Avalons waste brokerage and management services revenues is derived from the disposal and/or transportation of out-of-state
waste. Any law or regulation restricting or impeding the transportation of waste or the acceptance of out-of-state waste for disposal could have a negative effect on Avalon. Avalons waste brokerage and management services may also be affected
by the trend toward laws requiring the development of waste reduction and recycling or other programs.

All three of
Avalons golf course operations currently hold liquor licenses for their respective facilities. If, for some reason, any one of these facilities were to lose their liquor license, the financial performance of the golf and related operations
would be adversely affected.

Sales and Marketing

Avalons sales and marketing approach is decentralized, with each business segment being responsible for its own sales and marketing efforts. Each business segment employs its own sales force which
concentrates on expanding its business.

Competition

The hazardous and nonhazardous waste disposal brokerage and management business is highly competitive and fragmented. Avalons waste disposal brokerage and management business competes with other
brokerage companies, as well as, with companies which own treatment and disposal facilities. In addition to price, knowledge and service are key factors when competing for waste disposal brokerage and management business. Avalons waste
disposal brokerage and management operations obtain and retain customers by providing services and identifying cost-efficient disposal options unique to a customers needs. Consolidation within the solid waste industry has resulted in a
reduction in the number of disposal options available to waste generators and may cause disposal pricing to increase. Avalon may need to absorb all or a portion of these cost increases depending upon competitive conditions at the time.

Avalons golf courses are located in Warren, Ohio, Vienna, Ohio and Sharon, Pennsylvania and compete with many public courses and
country clubs in the area.

Insurance

Avalon carries $5,000,000 of liability insurance coverage. This insurance includes coverage for comprehensive general liability, automobile liability and other customary coverage. Avalon also carries
$5,000,000 of liability insurance for the golf courses and related operations which maintain separate insurance coverage. Avalon carries comprehensive property damage coverage and, also, professional



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liability insurance for its fitness, swimming and spa activities. No assurance can be given that such insurance will be available in the future or, if available, that the premiums for such
insurance will be reasonable.

If Avalon were to incur a substantial liability for damages not covered by insurance or in
excess of its policy limits or at a time when Avalon no longer is able to obtain appropriate liability insurance, its financial condition could be materially adversely affected.

Employees

As of December 31, 2010, Avalon had 226 employees,
29 of whom were employed by the waste management services segment, 168 of whom were employed by the golf and related operations and 29 of whom were employed in financial and administrative activities. Avalon believes that it has a good relationship
with its employees.

Other Business Factors

None of Avalons business segments is materially dependent on patents, trademarks, licenses, franchises or concessions, other than permits, licenses and approvals issued by regulatory agencies.
Avalon does not sponsor significant research and development activities.



|ITEM 1A. | RISK FACTORS
|-------- | ------------

The
following factors, as well as, factors described elsewhere in the Form 10-K, or in other filings by Avalon with the Securities and Exchange Commission, could adversely affect Avalons consolidated financial position, results of operations or
cash flows. Other factors not presently known to us or that we presently believe are not material could also affect our business operations and financial results.

Voting Control by Management

The holders of the Avalon Class B
Common Stock (which has ten votes per share), consisting principally of the management of Avalon, have approximately 66 percent of the aggregate voting power of the outstanding Avalon Common Stock. Thus, the holders of the Avalon Class A Common
Stock (which has one vote per share) will not, either alone or acting collectively, be able to elect a majority of the members of Avalons Board of Directors (the Avalon Board) or control many corporate actions. However, the holders
of the Avalon Class A Common Stock, voting as a separate class, have the right to elect the number of directors equal to at least 25 percent of the total Board of Directors of Avalon until the outstanding Avalon Class B Common Stock constitutes
less than 50 percent of the total voting power of the outstanding Avalon Common Stock, after which time the holders of the Avalon Class A and Class B Common Stock will vote as a single class for the election of directors and all matters
presented for a vote to the shareholders. The holders of a majority of all outstanding shares of Class A Common Stock or Class B Common Stock, voting as separate classes, must also approve amendments to the Articles of Incorporation that
adversely affect the shares of their class.

Each share of Class B Common Stock is convertible, at any time, at the option of
the shareholder, into one share of Class A Common Stock. Shares of Class B Common Stock are also automatically converted into shares of Class A Common Stock on the transfer of such shares to any person other than Avalon, another holder of
Class B Common Stock or a Permitted Transferee, as defined in Avalons Articles of Incorporation.

Certain Anti-Takeover Provisions
of Articles of Incorporation, Code of Regulations and Ohio Law

The Articles of Incorporation and Code of Regulations
of Avalon, as well as, Ohio statutory law, contain provisions that may have the effect of discouraging an acquisition of control of Avalon not approved by the Avalon Board. Such provisions may also have the effect of discouraging third parties from
making proposals involving an acquisition or change of control of Avalon, even though such proposals, if made, might be considered desirable by a majority of the Avalon stockholders. Such



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provisions could also have the effect of making it more difficult for third parties to cause the replacement of the current management of Avalon without the concurrence of the Avalon Board. These
provisions have been designed to enable Avalon to develop its business and foster its long-term growth without disruptions caused by the threat of a takeover not deemed by the Avalon Board to be in the best interest of Avalon and its stockholders.

Dividend Policy

The dividend policy of Avalon is determined by the Avalon Board. Avalon presently intends to retain earnings for use in the operation and expansion of its business and, therefore, does not anticipate
paying cash dividends in the foreseeable future.

Avalons market for shares may be subject to greater volatility and limited daily
activity

Market fluctuations, as well as economic conditions, may adversely affect the market price of the Avalon
Class A Common Stock. Given the relatively small market capitalization of Avalon, the market for its Class A Common Stock may be subject to greater volatility than would be the case for a large company. In addition, the selling and buying
of shares on a daily basis may be limited because of the relatively small capitalization of Avalon.

A majority of Avalons
business is not subject to long-term contracts

A significant portion of Avalons business is generated from waste
brokerage and management services provided to customers and is not subject to long-term contracts. In light of current economic, regulatory and competitive conditions, there can be no assurance that Avalons current customers will continue to
transact business with Avalon at historical levels. Failure by Avalon to retain its current customers or to replace lost business could adversely impact the future financial performance of Avalon.

Avalons captive landfill management business is dependent upon a single customer as its sole source of revenue. If the captive
landfill management business is unable to retain this customer, Avalons future financial performance could be adversely impacted.

The golf operations primary source of revenues is derived from the members of the Avalon Golf and Country Club. Members are obligated to pay dues for a one year period. As such, the golf operations are
primarily dependent on the sale and renewal of memberships in the Avalon Golf and Country Club, on a year to year basis.

Long-lived
asset impairment

Certain events or changes in circumstances may indicate that the recoverability of the carrying value
of long-lived assets should be assessed. Such events or changes may include a significant decrease in market value, a significant change in the business climate in a particular market, or a current-period operating or cash flow loss combined with
historical losses or projected future losses. If an event occurs or changes in circumstances are present, Avalon estimates the future cash flows expected to result from the use of the applicable groups of long-lived assets and their eventual
disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying value, Avalon would recognize an impairment loss to the extent the carrying value of the groups of long-lived assets
exceeds their fair value. Avalon would determine the fair value by using quoted market prices, if available, for such assets; or if quoted market prices are not available, Avalon would discount the expected estimated future cash flows.

The ability to accurately predict future cash flows may impact the determination of fair value. Avalons assessments of cash flows
represent managements best estimate at the time of the impairment review. Avalon estimates the future cash flows expected to result from the use and, if applicable, the eventual disposition of the assets. The key variables that management must
estimate include, among other factors, sales, costs, inflation and capital spending. Significant management judgment is involved in estimating these variables, and they include inherent uncertainties. If different cash flows had been estimated in
the current period, the value of the long-lived assets could have been materially impacted. Furthermore, Avalons accounting estimates may change from period to period as conditions in markets change, and this could materially impact financial
results in future periods.



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Seasonality

Avalons operations are somewhat seasonal in nature since a significant portion of those operations are primarily conducted in selected northeastern and midwestern states. Additionally, Avalons
golf courses are located in northeast Ohio and western Pennsylvania and are significantly dependent upon weather conditions during the golf season. As a result, Avalons financial performance could be adversely affected by adverse weather
conditions.

Environmental Liabilities

Avalon may be subject to liability for environmental contamination caused by pollutants, the transportation, treatment or disposal of which was arranged for by Avalon or one of its predecessors.

Although Avalon has compliance guidelines for its waste brokerage and management services business, Avalon could still incur
a substantial liability for environmental damage not covered by or in excess of its insurance policy limits and, as such, its financial condition could be adversely affected.

Competitive pressures

The hazardous and nonhazardous waste disposal
brokerage and management business is highly competitive and fragmented. Avalons waste disposal brokerage and management business competes with other brokerage companies, as well as, with companies which own treatment and disposal facilities.
In addition to price, knowledge and service are key factors when competing for waste disposal brokerage and management business. Avalons waste disposal brokerage and management business obtains and retains customers by providing services and
identifying cost-efficient disposal options unique to a customers needs. Consolidation within the solid waste industry has resulted in reducing the number of companies offering disposal options available to waste generators and may cause
disposal pricing to increase. Avalon may need to absorb all or a portion of these cost increases depending upon competitive conditions at the time.

Golf Memberships and Liquor Licenses

The Avalon Golf and Country Club has golf
courses and clubhouses at each of its three facilities. The Squaw Creek and Sharon facilities each have a swimming pool, a fitness center and dining and banquet facilities. In addition, the Squaw Creek facility has tennis courts and the Sharon
facility offers spa services. The Avalon Golf and Country Club competes with many public courses and country clubs in the area. Although the golf courses continue to be available to the general public, the primary source of revenues is derived from
the members of the Avalon Golf and Country Club. Avalon believes that the combination of its three facilities will result in additional memberships in the Avalon Golf and Country Club. Due to the state of the economy, the ability to retain current
members and attract new members has become more difficult. Although Avalon was able to retain and slightly increase the number of members of the Avalon Golf and Country Club in 2010, as of December 31, 2010, Avalon has not attained its
membership goals. There can be no assurance as to when such goals will be attained and when the golf and related operations will ultimately become profitable. Avalon is continually using different marketing strategies to attract new members, such as
local television advertising and various membership promotions. A significant decline in members could adversely affect the future financial performance of Avalon.

All three of Avalons golf course operations currently hold liquor licenses for their respective facilities. If, for some reason, any one of these facilities were to lose their liquor license, the
financial performance of the golf and related operations would be adversely affected.

Growth Strategy

Our growth strategy for the waste management services segment will focus on increasing revenue, gaining market share and enhancing shareholder value
through internal growth. Although we are a waste management services company, we do not own any landfills or provide waste collection services. However, because of our many relationships with various disposal facilities and transporters, we are able
to be more flexible and provide alternative solutions to a customers waste disposal or recycling needs.



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We intend to capitalize on our management and sales staff which has extensive experience in all aspects of the waste business. As such, we intend to manage our internal growth as follows:



| |  | Sales and Marketing Activities. We will focus on retaining existing customers and obtaining new business through our well-managed sales
and marketing activities. We seek to manage our sales and marketing activities to enable us to capitalize on our position in many of the markets in which we operate. We provide a tailored program to all of our customers in response to their
particular needs. We accomplish this by centralizing services to effectively manage their needs, such as minimizing their procurement costs.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We currently have a number of professional sales and marketing employees in the field who are compensated using a commission structure that is focused on generating high levels of quality revenue. For the
most part, these employees directly solicit business from existing and prospective customers. We emphasize our rate and cost structures when we train new and existing sales personnel.



| |  | Pricing Activities. We seek to secure price increases necessary to offset increased costs, to improve our operating margins and to obtain
adequate returns on our investments in assets.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Long-Term Agreements. We seek to obtain long-term agreements with all of our customers. By obtaining such long-term agreements, we will
have the opportunity to grow our revenue base at the same rate as the underlying revenue growth of these customers. We believe that this positions us to minimize revenue deterioration and experience internal growth rates that are generally higher
than our industrys overall growth rate. Additionally, we believe that by securing a base of long-term recurring revenue, we are better able to protect our market position from competition and our business may be less susceptible to downturns
in economic conditions.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Development Activities. We will seek to identify opportunities to further position us as an integrated service provider in markets where
we provide services. In addition, we will continue to utilize the extensive experience of our management and sales staff to bid on significant one-time projects and those that require special expertise. Where appropriate, we may seek to obtain
permits that would provide vertically integrated waste services or expand the service offerings or leverage our existing volumes with current vendors to provide for long term, cost competitive strategic positioning within our existing markets.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For the golf and related operations segment, several private country clubs in the northeast Ohio area are experiencing
economic difficulties. Avalon believes some of these clubs may represent an attractive investment opportunity. While Avalon has not entered into any pending agreements for acquisitions, it may do so at any time and will continue to consider
acquisitions that make economic sense. Such potential acquisitions could be financed by existing working capital, utilizing its line of credit, secured or unsecured debt, issuance of common stock, or issuance of a security with characteristics of
both debt and equity, any of which could impact liquidity in the future.

Government regulations

The federal government and numerous state and local governmental bodies are continuing to consider legislation or regulations to either
restrict or impede the disposal and/or transportation of waste. A portion of Avalons waste management services revenues is derived from the brokerage of the disposal and/or transportation of out-of-state waste. Any law or regulation
restricting or impeding the transportation of waste or the acceptance of out-of-state waste for disposal could have a negative effect on Avalon. Avalons waste brokerage and management services may also be affected by the trend toward laws
requiring the development of waste reduction and recycling or other programs.



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Changes in laws, regulations and accounting standards

Our implementation of new accounting rules and interpretations or compliance with changes in existing accounting rules could adversely
affect our balance sheet or results of operations or cause unanticipated fluctuations in our results of operations in future periods.

Accounting estimates and judgments

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and subsequent
adjustments could have a material adverse effect on operating results for the period or periods in which the change is identified.

Inflation

Avalon
has not entered into any long-term fixed price contracts that could have a material adverse impact upon its financial performance in periods of inflation. In general, management believes that rising costs resulting from price inflation could be
passed on to customers; however, Avalon may need to absorb all or a portion of these cost increases depending upon competitive conditions at the time.



|ITEM 1B. | UNRESOLVED STAFF COMMENTS
|-------- | -------------------------

There were no unresolved comments from the Staff of the U. S. Securities and Exchange Commission at December 31, 2010.



|ITEM 2. | PROPERTIES
|------- | ----------

Avalon owns a
37,000 square foot headquarters building located on approximately 5.6 acres of property in Warren, Ohio adjacent to the Avalon Lakes Golf Course. The corporate and administrative offices of ALMI, AWMS and all the golf operations are located at the
headquarters building of Avalon in Warren, Ohio. Avalons corporate headquarters building also includes a clubhouse, restaurant and pro shop for the Avalon Golf and Country Club at Avalon Lakes Golf Course.

ALGI owns an 18-hole golf course and practice facility on approximately 200 acres, a maintenance and storage building of approximately
12,000 square feet, a restaurant building of approximately 10,400 square feet, and a banquet facility of approximately 7,000 square feet. ALGI currently leases the restaurant building and banquet facility to a third party operator. All of
ALGIs facilities are located in Warren, Ohio.

TBG, Inc. leases and operates the Avalon Golf and Country Club at Squaw
Creek in Vienna, Ohio, which includes an 18-hole golf course and practice facility on approximately 224 acres, an outdoor swimming pool, 4 outdoor tennis courts, 4 indoor tennis courts and a 67,000 square foot clubhouse that includes a pro shop,
fitness center, restaurants and banquet facilities.

Avalon Country Club at Sharon, Inc. owns an 18-hole golf course on
approximately 130 acres. The clubhouse has been renovated and additional banquet and recreational facilities have been constructed. The renovated clubhouse and recreational facilities are approximately 80,000 square feet and include a pro shop,
dining and banquet facilities, an outdoor swimming pool, a spa and fitness center.

The captive landfill management operations
use approximately six pieces of equipment (such as bulldozers, excavators and backhoes) all of which are owned or leased by ALMI.

Generally, Avalons fixed assets are in good condition and are satisfactory for the purposes for which they are intended.



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##### Table of Contents

|ITEM 3. | LEGAL PROCEEDINGS
|------- | -----------------

In the
ordinary course of conducting its business, Avalon becomes involved in lawsuits, administrative proceedings and governmental investigations, including those related to environmental matters. Some of these proceedings may result in fines, penalties
or judgments being assessed against Avalon which, from time to time, may have an impact on its business and financial condition. Although the outcome of such lawsuits or other proceedings cannot be predicted with certainty, Avalon does not believe
that any uninsured ultimate liabilities, fines or penalties resulting from such pending proceedings, individually or in the aggregate, would have a material adverse effect on its liquidity, financial position or results of operations. See
Item 1. BusinessInsurance.



|ITEM 4. | REMOVED and RESERVED
|------- | --------------------



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##### Table of Contents

PART II

Information with respect to the following items can be found on the indicated pages of Exhibit 13.1, the 2010 Annual Report to
Shareholders, if not otherwise included herein.



|                                                                                                                                                                  |  |        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------
|ITEM 5.    MARKET FOR THE REGISTRANTS COMMON EQUITY AND
RELATED STOCKHOLDER MATTERS                                                                             
|                                                                                                                                                                  | 
|                                                                                                                                                                  |  | Page(s)
|Common stock information                                                                                                                                          |  | 24     
|Dividend policy                                                                                                                                                   |  | 24     
|                                                                                                                                                                 
|ITEM 6.    SELECTED FINANCIAL DATA                                                                                                                               
|Not required for Smaller Reporting Company                                                                                                                        |  |        
|                                                                                                                                                                 
|ITEM 7.    MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                                 
|Managements Discussion and Analysis of Financial Condition and Results of Operations                                                                             |  | 2-8    
|                                                                                                                                                                 
|ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK                                                                                              
|Not required for Smaller Reporting Company.                                                                                                                       |  |        
|                                                                                                                                                                 
|ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA                                                                                                           
|Independent auditors report regarding financial statements as of December 
31, 2010 and 2009 and for each of the two years in the period ended December 31, 2010 |  | 20     
|                                                                                                                                                                  | 
|Financial Statements:                                                                                                                                             |  |        
|Consolidated Balance Sheets, December 31, 2010 and 2009                                                                                                           |  | 9      
|Consolidated Statements of Operations for the years ended December 31, 2010 and
2009                                                                              |  | 10     
|Consolidated Statements of Cash Flows for the years ended December 31, 2010 and
2009                                                                              |  | 11     
|Consolidated Statements of Shareholders Equity for each of the two years in the period ended December 31,
 2010                                                  |  | 12     
|                                                                                                                                                                  | 
|Notes to Consolidated Financial Statements                                                                                                                        |  | 13-19  

Information regarding
financial statement schedules is contained in Item 15(a) of Part IV of this report.



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##### Table of Contents

|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|------- | ------------------------------------------------------------------------------------

None

ITEM 9A. CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the Exchange Act), Avalons management conducted an evaluation, under the supervision and with the participation of
the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by the Annual Report. For purposes of the foregoing, the term
disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the Securities and Exchange Commissions (SEC) rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuers management, including its principal executive and principal
financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Avalons disclosure controls and procedures are designed to provide reasonable assurance of achieving their
objectives as outlined above. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that they believe that, as of December 31, 2010, our disclosure controls and procedures were effective at a
reasonable assurance level.

Changes in Internal Control over Financial Reporting. There were no changes in our internal control over
financial reporting during the fourth fiscal quarter ended December 31, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None



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##### Table of Contents

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The information required by Item 10 regarding Directors is contained under the caption Election of Directors in the Registrants definitive Proxy Statement for its 2011 Annual
Meeting of Shareholders (the Proxy Statement) which will be filed with the Securities and Exchange Commission, pursuant to Regulation 14A, not later than 120 days after the end of the fiscal year, which information under such caption is
incorporated herein by reference. The following information with respect to the Executive Officers of Avalon is included pursuant to Instruction 3 of Item 401(b) of Regulation S-K:



|                   |  |     |    |  |          |                                                                                  
|------------------ |  | --- | -- |  | -------- | ---------------------------------------------------------------------------------
|Name               |  | Age |    |  | Position
|Ronald E. Klingle  |  |     | 63 |  |          | Chairman of the Board and a Director                                             
|Steven M. Berry    |  |     | 48 |  |          | President, Chief Executive Officer and a Director                                
|Timothy C. Coxson  |  |     | 60 |  |          | Treasurer, Chief Financial Officer, Secretary and a Director                     
|Frances R. Klingle |  |     | 64 |  |          | Chief Administrative Officer                                                     
|Kenneth J. McMahon |  |     | 58 |  |          | Chief Executive Officer and President of American Waste Management Services, Inc.

The above-listed individuals have been elected to the offices set opposite their names to hold office at the discretion of the Board of Directors of Avalon or its subsidiaries, as the case may be.

Ronald E. Klingle has been a director and Chairman of the Board of the Company since June 1998. He was Chief Executive
Officer from June 1998 until December 2002. He reassumed and held the position of Chief Executive Officer from March 15, 2004 until February 28, 2010. Due to the resignation of Mr. Steven M. Berry which is effective
February 15, 2011, Mr. Klingle has been appointed to the position of Chief Executive Officer effective February 16, 2011. Mr. Klingle has over 30 years of environmental experience and received his Bachelor of Engineering degree
in Chemical Engineering from Youngstown State University. Mr. Klingle is the spouse of Frances R. Klingle who is the Chief Administrative Officer of the Company.

Steven M. Berry was elected as a director and President and Chief Executive Officer on March 1, 2010 by the Board of Directors. Mr. Berry was Area Vice President for Waste Management, Inc. from
2006 until January 2009 and Vice President Marketing, Planning and Development from 1998 to 2006. Mr. Berry has over 25 years of experience in the waste management business and has extensive experience in mergers and acquisitions, customer
service and sales and marketing. Mr. Berry received his Bachelor of Science degree from Kent State University. Mr. Berry resigned effective February 15, 2011.

Timothy C. Coxson has been a director of the Company since April 2007. He has been Chief Financial Officer and Treasurer since March 2006. He became Secretary in April 2007. Mr. Coxson had been Chief
Financial Officer and Treasurer of Avalon from June 1998 until August 2004. From September 2004 to March 2006, Mr. Coxson was Director of Corporate Services of Avalon. He has over 25 years of experience working for publicly owned companies in
accounting and external reporting. He received a Bachelor of Business Administration degree in Accounting from The Ohio State University.

Frances R. Klingle has been Chief Administrative Officer since June 1998. She was Controller of Avalon from June 1998 to April 2002. Ms. Klingle received a Bachelor of Arts degree in French from Kent
State University and has completed postgraduate work in accounting at Youngstown State University. Ms. Klingle is the spouse of Ronald E. Klingle who is Chairman of the Board and a director of Avalon.

Kenneth J. McMahon has been Chief Executive Officer and President of American Waste Management Services, Inc. since June 1998.
Mr. McMahon had previously been Executive Vice President, Sales and a director of American Waste Services, Inc. from September 1996 to June 1998. Mr. McMahon received a Bachelor of Business Administration degree in finance and his Master
of Business Administration degree from Youngstown State University.



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CODE OF ETHICS

Avalon has adopted a Code of Ethics in the form of Standards of Business Ethics and Conduct. Such code applies to all employees of Avalon including its principal executive officer, principal financial
officer, principal accounting officer, controller and persons performing similar functions. The Code of Ethics is posted on our website at http://www.avalonholdings.com

Copies of Avalons Code of Ethics may be obtained without charge by any shareholder. Written requests for copies should be directed to the Secretary of Avalon Holdings Corporation, One American Way,
Warren, Ohio 44484.

ITEM 11. EXECUTIVE COMPENSATION

The information required by Item 11 is contained under the captions Executive Compensation, and Compensation of
Directors and Executive Officers in the Proxy Statement. The information under such captions is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by Item 12
is contained under the captions Voting Securities and Principal Holders Thereof and Stock Ownership of Management in the Proxy Statement which information under such captions is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by Item 14 is contained under the
caption Independent Public Accountants in the Proxy Statement which information under such captions is incorporated herein by reference.



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##### Table of Contents

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K



|(a) | The following documents are filed as part of this report:
|--- | ---------------------------------------------------------



| | 1. | Financial Statements and Independent Auditors Report (See Part II, Item 8 of this report regarding incorporation by reference from the 2010 Annual Report to
Shareholders).
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | Financial Statement Schedules required to be filed by Item 8 and Paragraph (d) of this Item 15.
| | -- | -----------------------------------------------------------------------------------------------

The following financial statement schedule, which is applicable for years ended December 31, 2010 and 2009, should be read in
conjunction with the previously referenced financial statements.

Independent Auditors Report on Financial Statement
Schedule

Schedule II - Valuation and Qualifying Accounts

Such independent auditors report and financial statement schedule are at pages 17 and 18 of this report. The other schedules are
omitted because of the absence of conditions under which they are required or because the information required is shown in the consolidated financial statements or the notes thereto.



| | 3. | Exhibits.
| | -- | ---------

Registrant will
furnish to any shareholder, upon written request, any of the following exhibits upon payment by such shareholder of the Registrants reasonable expenses in furnishing any such exhibit.



|            |  |                                                                                                                                                                                                                                                                                                  
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  |                                                                                                                                                                                                                                                                                                  
|            | 
|2.1         |  | Agreement and Plan of Merger, dated as of February 6, 1998, entered into by and among USA Waste Services, Inc. (USA), C&S Ohio Corp. and American Waste
Services, Inc. (AWS), incorporated herein by reference to Avalon Holdings Corporation Registration Statement on Form 10, Exhibit 2.1.
|            | 
|2.2         |  | Form of Contribution and Distribution Agreement, dated as of May 7, 1998, by and between AWS and Avalon Holdings Corporation (Avalon), incorporated herein by reference
to Avalon Holdings Corporation Registration Statement on Form 10, Exhibit 2.2.                                         
|            | 
|3.1         |  | Articles of Incorporation of Avalon incorporated herein by reference to Avalon Holdings Corporation Registration Statement on Form 10, Exhibit 3.1.                                                                                                                                              
|            | 
|3.2         |  | Code of Regulations of Avalon incorporated herein by reference to Avalon Holdings Corporation Registration Statement on Form 10, Exhibit 3.2.                                                                                                                                                    
|            | 
|4.1         |  | Form of certificate evidencing shares of Class A common stock, par value $.01, of Avalon Holdings Corporation incorporated herein by reference to Avalon Holdings Corporation
Registration Statement on Form 10, Exhibit 4.1.                                                                    
|            | 
|4.2         |  | Avalon Holdings Corporation Long-Term Incentive Plan incorporated herein by reference to Avalon Holdings Corporation Registration Statement on Form S-8, Exhibit
4.2.                                                                                                                            
|            | 
|10.1        |  | Form of Tax Allocation Agreement, dated as of May 7, 1998, by and among AWS, Avalon and USA incorporated herein by reference to Avalon Holdings Corporation Registration Statement on
Form 10, Exhibit 10.1.                                                                                     
|            | 
|10.2        |  | Lease Agreement with Squaw Creek Country Club, as referenced as Exhibit 10.3 to the registrants Form 10-Q for the period ended September 30, 2003.                                                                                                                                              
|            | 
|10.3        |  | Stock Purchase Agreement dated as of June 30, 2004 between Avalon Holdings Corporation and BMC International, Inc. for the purchase of DartAmericA, Inc., as referenced as Exhibit
10.4 to the registrants Form 10-Q for the period ended June 30, 2004.                                        



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##### Table of Contents

|     |  |                                                                                                                                                                                                                                                                                                            
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     | 
|11.1 |  | Omittedinapplicable. See Basic net loss per share on page 14 of the 2010 Annual Report to Shareholders.                                                                                                                                                                                                 
|     | 
|13.1 |  | Avalon Holdings Corporation 2010 Annual Report to Shareholders (except pages and information therein expressly incorporated by reference in this Form 10-K, the Annual Report to
Shareholders, is provided for the information of the Commission and is not to be deemed filed as part of the Form 10-K).
|     | 
|14.1 |  | Code of Ethics                                                                                                                                                                                                                                                                                             
|     | 
|21.1 |  | Subsidiaries of Avalon Holdings Corporation.                                                                                                                                                                                                                                                               
|     | 
|23.1 |  | Consent of Grant Thornton, as referenced as Exhibit 23.1 to the Avalon Holdings Corporation Registration Statement on Form S-8                                                                                                                                                                             
|     | 
|23.2 |  | Consent of Grant Thornton, as referenced as Exhibit 23.2 to the registrants Form 10-K for the year ended December 31, 2010                                                                                                                                                                                
|     | 
|31.1 |  | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                   
|     | 
|31.2 |  | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                   
|     | 
|32.1 |  | Certification pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                       
|     | 
|32.2 |  | Certification pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                       



|(b) | Reports on Form 8-K
|--- | -------------------

On
January 12, 2011, Avalon announced the resignation of Mr. Steve M. Berry as a director, President and Chief Executive Officer effective February 15, 2011.



|(c) | Reference is made to Item 15 (a)(3) above for the index of Exhibits.
|--- | --------------------------------------------------------------------



|(d) | Reference is made to Item 15 (a)(2) above for the index to the financial statements and financial statement schedules.
|--- | ----------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, on the 11thday of March, 2011.



AVALON HOLDINGS CORPORATION(Registrant)By

/s/ Timothy C. CoxsonTimothy C. Coxson- Treasurer andChief Financial Officer






Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated, on the
11thday of March, 2011.



|                      |  |                                               
|--------------------- |  | ----------------------------------------------
|Signatures            |  | Title                                         
|                      | 
|/s/ RONALD E. KLINGLE |  | Chairman of the Board, Chief Executive Officer
|Ronald E. Klingle     |  | and Director                                  
|                      | 
|/s/ TIMOTHY C. COXSON |  | Chief Financial Officer, Treasurer, Secretary 
|Timothy C. Coxson     |  | and Director                                  
|                      | 
|/s/ KURTIS D. GRAMLEY |  | Director                                      
|Kurtis D. Gramley     |  |                                               
|                      | 
|/s/ STEPHEN L. GORDON |  | Director                                      
|Stephen L. Gordon     |  |                                               
|                      | 
|/s/ DAVID G. BOZANICH |  | Director                                      
|David G. Bozanich     |  |                                               



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##### Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and

Shareholders of Avalon
Holdings Corporation

We have audited in accordance with the standards of the Public Company Accounting Oversight Board (United States) the
consolidated financial statements of Avalon Holdings Corporation and subsidiaries referred to in our report dated March 11, 2011, which is included in the 2010 Annual Report to Shareholders and incorporated by reference in Part II of this form.
Our audits of the consolidated financial statements included the financial statement schedule listed in the index appearing under Item 15(a) (2), which is the responsibility of the Companys management. In our opinion, this financial
statement schedule, when considered in relation to the consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.



|                      
|----------------------
|/s/ GRANT THORNTON LLP
|                      
|Cleveland, Ohio       
|March 11, 2011        



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##### Table of Contents

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

(thousands of dollars)



|                                 |  |                              |     |  |                          |   |    |                            |  |   |                       |  |  |   |     |  |  |   |     | 
|-------------------------------- |  | ---------------------------- | --- |  | ------------------------ | - | -- | -------------------------- |  | - | --------------------- |  |  | - | --- |  |  | - | --- | 
|DESCRIPTION                      |  | Balance atBeginning ofYear   |     |  | Additions                |   |    | Deductions /(Recoveries) 1 |  |   | Balance at End ofYear | 
|                                 |  | Charged to Costsand Expenses |     |  | Charged to OtherAccounts |   |    |                           
|                                 |  |                              |     |  |                         
|Allowance for Doubtful Accounts: |  |                              |     |  |                          |   |    |                            |  |   |                       |  |  |   |     |  |  |   |     | 
|Year ended December 31,          |  |                              |     |  |                          |   |    |                            |  |   |                       |  |  |   |     |  |  |   |     | 
|2010                             |  | $                            | 165 |  |                          | $ | 14 |                            |  | $ |                      |  |  | $ | 11  |  |  | $ | 168 | 
|                                 |  |                              |     |  |                          |   |    |                            |  |   |                       |  |  |   |     |  |  |   |     | 
|2009                             |  | $                            | 369 |  |                          | $ | 93 |                            |  | $ |                      |  |  | $ | 297 |  |  | $ | 165 | 
|                                 |  |                              |     |  |                          |   |    |                            |  |   |                       |  |  |   |     |  |  |   |     | 



|1 | Accounts receivable written-off as uncollectible, net of recoveries.
|- | --------------------------------------------------------------------



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AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

EXHIBIT INDEX







|     |  |                                                                                                                       
|---- |  | ----------------------------------------------------------------------------------------------------------------------
|     |  | Exhibit                                                                                                               
|     | 
|13.1 |  | 2010 Annual Report to Shareholders                                                                                    
|     | 
|14.1 |  | Code of Ethics                                                                                                        
|     | 
|21.1 |  | Subsidiaries of Avalon Holdings Corporation                                                                           
|     | 
|23.2 |  | Consent of Independent Registered Public Accounting Firm                                                              
|     | 
|31.1 |  | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               
|     | 
|31.2 |  | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               
|     | 
|32.1 |  | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|     | 
|32.2 |  | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



19