<PAGE>

                                     2001
================================================================================
               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, 2001

[_]  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                    (I.R.S. Employer
of incorporation or organization)                  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:

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

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


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]

The aggregate market value of Class A Common Stock held by non-affiliates of the
registrant on February 14, 2002 was $8.7 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
February 14, 2002 was approximately $4,100. The registrant had 3,185,240 shares
of its Class A Common Stock and 618,091 shares of its Class B Common Stock
outstanding as of March 1, 2002.

                      Documents Incorporated by Reference

1. Portions of the Avalon Holdings Corporation Annual Report to Shareholders for
   the year ended December 31, 2001 (Parts I and II of Form 10-K).
2. Portions of the Avalon Holdings Corporation Proxy Statement dated March 22,
   2002 (Part III of Form 10-K).
================================================================================
<PAGE>

                 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

<TABLE>
<CAPTION>
Part I                                                                                           Page
                                                                                                 ----
<S>                                                                                              <C>
 Item 1.    Business............................................................................   1
 Item 2.    Properties..........................................................................   6
 Item 3.    Legal Proceedings...................................................................   6
 Item 4.    Submission of Matters to a Vote of Security Holders.................................   7

Part II

 Item 5.    Market for the Registrant's Common Equity and Related Stockholder Matters...........   8
 Item 6.    Selected Financial Data.............................................................   8
 Item 7.    Management's Discussion and Analysis of Financial Condition and Results
            of Operations.......................................................................   8
 Item 7A.   Quantitative and Qualitative Disclosures About Market Risk..........................   8
 Item 8.    Financial Statements and Supplementary Data.........................................   8
 Item 9.    Changes in and Disagreements with Accountants on Accounting and  Financial
            Disclosure..........................................................................   8

Part III

 Item 10.   Directors and Executive Officers of the Registrant..................................   9
 Item 11.   Executive Compensation..............................................................  10
 Item 12.   Security Ownership of Certain Beneficial Owners and Management......................  10
 Item 13.   Certain Relationships and Related Transactions......................................  10

Part IV

 Item 14.   Exhibits, Financial Statement Schedules, and Reports on Form 8-K....................  11

Signatures......................................................................................  13
</TABLE>

                      Note on Incorporation by Reference

Throughout this report various information and data are incorporated by
reference from Avalon's 2001 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.
<PAGE>

                                    PART 1

ITEM 1.  BUSINESS

Spin-off
--------

  Pursuant to the terms of a Contribution and Distribution Agreement dated as of
May 7, 1998 between Avalon and American Waste Services, Inc. ("AWS"), AWS
contributed to Avalon its transportation operations, technical environmental
services operations, waste disposal brokerage and management operations, and
golf course and related operations together with certain other assets including
the headquarters of AWS and certain accounts receivable.  In connection with the
contribution, Avalon also assumed certain liabilities of 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").

General
-------

  Avalon was incorporated in Ohio on April 30, 1998 solely for the purpose of
effecting the Spin-off.  Avalon is a holding company which owns subsidiaries
that historically performed the transportation operations, technical
environmental services operations, waste disposal brokerage and management
operations, and golf course and related operations of AWS.

  In January 1990, AWS acquired Avalon's transportation companies: DartAmericA,
Inc. and its subsidiaries which provide hazardous and nonhazardous waste
transportation, transportation of general and bulk commodities, and
transportation brokerage and management services; and Envirco Transportation
Management, Inc., a waste transportation brokerage and management business.
These companies became subsidiaries of Avalon as a result of the Spin-off.

  In June 1990, AWS purchased approximately 5.6 acres of real estate located in
Warren, Ohio on which it constructed Avalon's 26,000 square foot office building
to serve as its corporate headquarters.  In connection with the acquisition of
such property, Avalon Lakes Golf, Inc. ("ALGI") acquired the real and personal
property associated with the Avalon Lakes Golf Course, an 18-hole golf course
adjacent to the office property.  ALGI became a subsidiary of Avalon as a result
of the Spin-off.

  In October 1990, AWS acquired Avalon's environmental consulting, laboratory
and remediation companies:  Earth Sciences Consultants, Inc., Antech Ltd., and
AWS Remediation, Inc.  These technical environmental services firms are referred
to collectively as the "Earth Sciences Companies."  The Earth Science Companies
became subsidiaries of Avalon as a result of the Spin-off.

  During 1995, American Waste Management Services, Inc., a subsidiary of AWS,
commenced its waste disposal brokerage and management operations. This company
became a subsidiary of Avalon as a result of the Spin-off.

  During the third quarter of 1997, a newly organized subsidiary of AWS,
American Landfill Management, Inc., started its captive landfill management
operations.  This company became a subsidiary of Avalon as a result of the Spin-
off.

Business Segments Information
-----------------------------

  Avalon's business segments are transportation services, technical
environmental services, waste disposal brokerage and management services, and
golf and related operations.  The transportation services, technical
environmental services and waste disposal brokerage and management services are
provided to industrial, commercial, municipal and governmental customers
primarily in selected northeastern and midwestern United States markets.
Avalon's transportation services segment provides transportation of hazardous
and nonhazardous waste, transportation of general and bulk commodities and the
brokerage and management of transportation services.  For the years 2001, 2000
and 1999, the net operating revenues of the transportation services segment
represented approximately 44%, 48% and 45%, respectively, of Avalon's total
segments' net operating revenues.  Avalon's technical environmental services
segment provides environmental consulting, engineering, site

                                       1
<PAGE>

assessments, analytical laboratory, remediation and captive landfill management
services. For the years 2001, 2000 and 1999, the net operating revenues of the
technical environmental services segment represented approximately 27%, 28% and
32%, respectively, of Avalon's total segments' net operating revenues. Avalon's
waste disposal brokerage and management services segment provides hazardous and
nonhazardous waste disposal brokerage and management services. For the years
2001, 2000 and 1999, the net operating revenues of the waste disposal brokerage
and management services segment represented approximately 28%, 23% and 21%,
respectively, of Avalon's total segments' net operating revenues. Avalon's golf
course and related operations segment operates an 18-hole golf course and a
travel agency. For the years 2001, 2000 and 1999, the net operating revenues of
the golf and related operations segment represented approximately 1%, 1%, and
2%, respectively, of Avalon's total segments' net operating revenues.

Transportation Services

  Avalon's transportation subsidiaries transport waste and other materials on
behalf of customers within the United States and portions of Canada and provide
transportation brokerage and management services.  The transportation operations
have the equipment and the expertise to transport virtually all types of waste
and most commodity products.

  DartAmericA, Inc. through its subsidiaries (collectively, "Dart"),
headquartered in Warren, Ohio, is engaged in the transportation of waste and is
a common carrier of both general and bulk commodities.  Dart, which commenced
operations in 1965, also engages in the brokerage and management of
transportation.

  Dart is a fully licensed hazardous and nonhazardous waste carrier.
Approximately 70%, 79% and 72% of the revenue generated by Dart in 2001, 2000
and 1999, respectively, related to the transportation of waste.  Hazardous waste
represented 36%, 37% and 56% of Dart's waste transportation revenues in 2001,
2000 and 1999, respectively.

  Dart, which is licensed as a common carrier in 49 states and several provinces
of Canada, derived 30%, 21% and 28% of its revenues in 2001, 2000 and 1999,
respectively, from the transportation of general and bulk commodities, such as
coal, salt, sand, ash, steel products and heavy machinery.  A common carrier
engaged in the transportation of goods owned by others is subject to federal and
state regulations which establish operating and safety standards.  Carriers are
liable for loss of or damage to goods entrusted to their care.  Public liability
and property damage insurance is compulsory.

  A substantial number of the truck power units and trailers used by Dart are
owned and operated by independent truckers who receive a negotiated percentage
of the gross revenue from carriage.  Many of the approximately 60 to 80
independent truckers who regularly provide services for Dart have been doing so
for a number of years.  These independent truckers pay for fuel and all other
expenses with the exception of automotive liability insurance, hazardous waste
permits, special equipment required to carry hazardous waste and other safety
equipment, all of which are provided by Dart.  Equipment used by the independent
truckers is inspected at least annually and is subject to random inspections by
Dart.  See Item 2--"Properties."

  Waste is transported by roll-off trailers, specialized tankers, van trailers,
dump trailers, walking floor trailers or flatbed trailers to treatment and
disposal facilities.  Dart leases roll-off containers to customers which fill
the containers with waste as it is generated.  Using specially designed
trailers, Dart periodically picks up and replaces the containers, which it
transports to approved facilities for disposal.  In connection with its
transportation of municipal solid waste, Dart also provides loading services at
several customer owned municipal solid waste transfer stations.  See Item 2--
"Properties."

  Dart also provides transportation brokerage and management services to a
variety of customers.  Dart maintains lists of approved transporters, which it
periodically reviews and updates, and Dart will only engage transporters that it
believes are reliable and efficient in providing the services required in
accordance with Dart's standards.  The waste transportation brokerage and
management operations of Envirco Transportation Management, Inc. have been
consolidated with the operations of Dart.

  During 2001, four customers of the transportation services segment accounted
for approximately 13%, 10%, 10% and 10%, respectively, of the segment's net
operating revenues to external customers.

                                       2
<PAGE>

Technical Environmental Services

  The Earth Sciences Companies, headquartered in Export, Pennsylvania, provide a
wide range of technical environmental services, including environmental impact
studies, landfill design, permitting, site assessments, waste management and
minimization, consulting, laboratory services, site remediation, and
environmentally related construction activities, including conducting landfill
closures and performing facility decommissioning activities, including those
subject to the jurisdiction of the Nuclear Regulatory Commission.  These
companies also provide hazardous and nonhazardous waste management, groundwater
remediation and underground storage tank management.  The Earth Sciences
Companies are often engaged to perform a remedial investigation/feasibility
study, which first entails performing a site assessment involving the gathering
of samples from a contaminated site, followed by laboratory analyses to
establish or verify the nature and extent of the contaminants.  Alternative
solutions to remedy the particular problem are then developed, evaluated and
presented to the client.  The Earth Sciences Companies are equipped to implement
the mitigation and decontamination program then selected by the client and
approved by the appropriate regulatory agency.  When implementing such a
program, the Earth Sciences Companies may employ the transportation, waste
management and/or brokerage services of its affiliated companies.  The Earth
Sciences Companies also possess the expertise to perform the evaluation and
analysis necessary to advise clients on compliance with federal and state
environmental regulations, and have assisted clients in developing waste
management and compliance policies, including the development of plans for waste
minimization and disposal.  The Earth Sciences Companies also provide services
related to the evaluation of the environmental condition of real estate for law
firms, banks or potential purchasers, as well as expert environmental testimony
in legal proceedings.

  The Earth Sciences Companies provide comprehensive organic, inorganic and
radiochemical laboratory services, including water and wastewater analyses,
waste characterization, sludge, soil and rock analyses and related bench studies
for wastewater treatment and process design.

  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.

  During 2001, one customer of the technical environmental services segment
accounted for approximately 22% of the segment's net operating revenues to
external customers as a result of a single remediation project.

Waste Disposal Brokerage and Management Services

  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.

  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.

  Prior to AWMS providing waste brokerage or management services, a potential
customer must complete a detailed questionnaire setting forth the amount,
chemical composition and any special characteristics for each separate 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

                                       3
<PAGE>

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.

  During 2001, one customer of the waste disposal brokerage and management
services segment accounted for approximately 11% of the segment's net operating
revenues to external customers as a result of a single project.

Golf and Related Operations

  Avalon Lakes Golf, Inc. ("ALGI") owns and operates a travel agency and a Pete
Dye designed championship golf course located in Warren, Ohio. ALGI hosted a
Ladies Professional Golf Association ("LPGA") tournament event from 1994 through
2000. During the third quarter of 1999, ALGI closed the golf course to make
significant capital improvements to the course and related facilities. The golf
course resumed operations on a limited basis during the third quarter of 2000.
ALGI generates its revenue from greens fees, cart rentals, merchandise sales and
booking travel reservations. Although the redesigned golf course will continue
to be available to the general public, in anticipation of national recognition
of the course, during 2001, Avalon created the Avalon Lakes Golf Club.
Membership requires payment of a one-time initiation fee as well as annual dues.
Members receive several benefits including reduced green fees and preferential
tee times. As a result of ALGI being located in northeast Ohio, the golf course
is significantly dependent upon weather conditions during the golf season.  See
Item 2 - "Properties".

Governmental Regulations

  As with other transportation companies, Avalon's transportation operations
must comply with Federal Motor Carrier Safety Regulations as promulgated by the
United States Department of Transportation.  In order to transport hazardous
waste and, in certain cases, nonhazardous solid waste, Avalon's transportation
operations must also comply with additional Federal Motor Carrier Safety
Regulations and possess and maintain one or more state operating permits.  These
operating permits must be renewed annually and are subject to modification and
revocation by the issuing agency.  In addition, Avalon's waste transportation
operations are subject to evolving and expanding operational and safety
requirements.

  In the ordinary course of their operations, Avalon's subsidiaries may from
time to time receive citations, notices or comments from regulatory authorities
that such operations are not in compliance with applicable environmental
regulations.  These agencies may seek to impose fines, or revoke or deny renewal
of operating permits or licenses, or require the remediation of environmental
problems resulting from Avalon's transportation or waste brokerage operations.
Upon receipt of such citations, notices or comments, the appropriate subsidiary
works with the authorities in an attempt to resolve the issues raised.  Failure
to correct the problems to the satisfaction of the authorities could lead to
fines and/or a curtailment or cessation of certain operations.

  The federal government and numerous state and local governmental bodies are
increasingly considering, proposing or enacting legislation or regulations to
either restrict or impede the disposal and/or transportation of waste.  A
significant portion of Avalon's disposal brokerage and transportation revenues
is derived from the disposal 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 significant negative
effect on Avalon.  Avalon's transportation operations may also be affected by
the trend toward laws requiring the development of waste reduction and recycling
or other programs.

Sales and Marketing

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

                                       4
<PAGE>

Competition

  The markets for the transportation of hazardous and nonhazardous waste and for
the transportation of general and bulk commodities are each highly competitive.
There are numerous participants, and no one transporter has a dominant market
share.  Avalon competes primarily with other short and long-haul carriers for
both truckload and less than truckload shipments.  Competition for the
transportation of waste is based on the ability of the carrier to transport the
waste at a competitive price and in accordance with applicable regulations.
Competition for the transportation of commodities is based primarily on price
and service. As is the case with any transportation company, Avalon's costs
depend on the price and availability of diesel fuel.

  Avalon's technical environmental services operations compete with numerous
large and small companies, each of which is able to provide one or more of the
environmental services offered by Avalon and some of which have greater
financial resources.  Avalon attempts to develop relationships with clients who
have an ongoing need for its integrated technical environmental services.  The
availability of skilled technical personnel, the quality of performance and
service, and fees are the key competitive factors in developing such
relationships.

  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 the 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 service and identifying cost-efficient disposal options
unique to a customer's needs.  Continued consolidation within the solid waste
industry has reduced the number of disposal options available to waste
generators and has caused disposal pricing to increase.  Avalon does not believe
that industry pricing changes alone will have a material effect upon its waste
disposal brokerage and management operations.  However, consolidation will have
the effect of reducing the number of competitors offering disposal alternatives,
which may adversely impact the future financial performance of Avalon's waste
disposal brokerage and management operations.

  Avalon's golf course and related operations are located in Warren, Ohio and
the golf course is significantly dependent on weather conditions during the golf
season.  The golf course competes with many public and private courses in the
area.

Insurance

  Avalon carries $21,000,000 of liability insurance coverages.  This insurance
includes coverage for comprehensive general liability, automobile liability
(including a pollution liability endorsement which covers certain liabilities
from spills), comprehensive property damage and other customary coverages.  Dart
self-insures for collision risks and ALGI maintains its own separate insurance.
The Earth Sciences Companies also maintain professional and contractors
pollution liability coverages.  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.

  Avalon has entered into contracts with governmental authorities for a variety
of environmental services.  Typically, such contracts require surety bonds or
other financial instruments to assure performance under the terms thereof.
Avalon has obtained in the past, and expects to be able to obtain in the future,
such bonds or other financial instruments.

Employees

  As of December 31, 2001, Avalon had 422 employees, 208 of whom were employed
in transportation operations, 153 of whom were employed in technical
environmental services, 22 of whom were employed by the waste disposal brokerage
and management operations, 11 of whom were employed by the golf course and
related

                                       5
<PAGE>

operations and 28 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 2.  PROPERTIES

  Dart provides transportation services from locations in Canfield, Ohio (where
Dart owns an 18,800 square foot facility); Oxford, Massachusetts (where Dart
leases a 5,760 square foot terminal); Kenova, West Virginia (where Dart leases a
1,500 square foot terminal); Chicago, Illinois (where Dart leases a 500 square
foot terminal and leases a 5,100 square foot maintenance facility); and Bedford,
New Hampshire (where Dart leases a 300 square foot office.  At December 31,
2001, the transportation operations owned a fleet of 20 power units (in addition
to 144 power units which are leased), 299 trailers (in addition to 58 trailers
which are leased and 91 which are rented), and 654 roll-off and other
containers.  In addition, 60 to 80 power units and 90 to 110 trailers owned by
independent owner/operators are available for use in Dart's operations.

  The Earth Sciences Companies own their main offices and laboratory facilities
located in a 48,000 square foot building in Export, Pennsylvania.  In addition,
17,000 square feet is leased for field equipment and vehicle storage and
dispatch in Murrysville, Pennsylvania.  The Earth Sciences Companies also own
numerous pieces of laboratory, field, computer and other equipment.

  The captive landfill management operations use approximately six pieces of
equipment (such as a bulldozer, excavator and backhoe) all of which are owned or
leased by ALMI.

  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 and is in the process of
constructing a club house including a pro shop as part of the remodeling of
Avalon's corporate headquarters building.  All the facilities are located in
Warren, Ohio.

  Avalon owns a 26,000 square foot headquarters building located on
approximately 5.6 acres of property in Warren, Ohio adjacent to the golf course.
Avalon's corporate headquarters building is currently being remodeled to include
a clubhouse for the Avalon Lakes Golf Club.  The corporate and administrative
offices of Dart, ALMI, and American Waste Management Services, Inc. are each
located at the headquarters building of Avalon in Warren, Ohio.

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

ITEM 3.  LEGAL PROCEEDINGS

  In September 1995, certain subsidiaries of Avalon were informed that they had
been identified as potentially responsible parties by the Indiana Department of
Environmental Management with respect to a Fulton County, Indiana hazardous
waste disposal facility which facility is subject to remedial action under
Indiana Environmental Laws.  Such identification was based upon the subsidiaries
having been involved in the transportation of hazardous substances to the
facility.  A large number of waste generators and other waste transportation and
disposal companies were also identified as responsible or potentially
responsible parties with respect to this facility.  During the fourth quarter of
1999, Avalon became a party to an Agreed Order and a Participation Agreement
regarding the remediation of a portion of this site.  The Participation
Agreement provides for, among other things, the allocation of all site
remediation costs except for approximately $3 million.  Avalon's total liability
for the allocated costs under the Participation Agreement was approximately
$71,000, which Avalon has paid.

                                       6
<PAGE>

  The additional unallocated site remediation costs are currently estimated to
be approximately $3 million and Avalon's total accrued liability relating to the
remediation of this portion of the site on an undiscounted basis is $120,000.
The extent of any ultimate liability of any of Avalon's subsidiaries with
respect to these additional costs is unknown.  The measurement of environmental
liabilities is inherently difficult and the possibility remains that
technological, regulatory or enforcement developments, the results of
environmental studies or other factors could materially alter Avalon's
expectations at any time.  Currently, however, because of the expected sharing
among responsible and potentially responsible parties, the availability of legal
defenses, and typical settlement results, Avalon currently estimates that the
ultimate liability of this matter will be consistent with the amounts recorded
on Avalon's financial statements.

  In addition to the foregoing, in the ordinary course of conducting its
business, Avalon also becomes involved in lawsuits, administrative proceedings
and governmental investigations, including those relating 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 it.  See Item 1.  "Business--Insurance."

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

  No matters were submitted to a vote of Avalon's security holders during the
fourth quarter of 2001.

                                       7
<PAGE>

                                    PART II

  Information with respect to the following items can be found on the indicated
pages of Exhibit 13.1, the 2001 Annual Report to Shareholders if not otherwise
included herein.

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
         MATTERS

<TABLE>
<CAPTION>
                                                                                         Page(s)
                                                                                         -------
<S>                                                                                      <C>
Common stock information.................................................................      27
Dividend policy..........................................................................      27

ITEM 6.  SELECTED FINANCIAL DATA
The information required by this item is included in the Digest of Financial
  Data for the years 1997 through 2001 under the captions Net operating revenues,
  Net income (loss), Net income (loss) per share and pro forma net loss per share,
  Total assets and Long-term debt........................................................      24

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....      2-9

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information set forth under the subcaption "Market Risk" contained in Item 7,
    "Management's Discussion and Analysis of Financial Condition and Results of
    Operations" is incorporated herein by reference.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Independent auditors' report regarding financial statements as of
  December 31, 2001 and 2000 and for each of the years in the three-year period
  ended December 31, 2001.................................................................     23

Financial Statements:
 Consolidated Balance Sheets, December 31, 2001 and 2000..................................     10
 Consolidated Statements of Operations for the years ended December 31, 2001, 2000
    and 1999..............................................................................     11
 Consolidated Statements of Cash Flows for the years ended December 31, 2001,
    2000 and 1999.........................................................................     12
 Consolidated Statements  of Shareholders' Equity for each of the years in the
    three-year period ended December 31, 2001.............................................     13
 Notes to Consolidated Financial Statements...............................................     14-23
</TABLE>

  Information regarding financial statement schedules is contained in Item 14(a)
of Part IV of this report.

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

 None


                                       8
<PAGE>

                                   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 2002 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:

<TABLE>
<CAPTION>
  Name                       Age                                       Position
  ----                       ---                                       --------
<S>                          <C>              <C>
Ronald E. Klingle             54              Chairman of the Board, Chief Executive Officer and a Director
Timothy C. Coxson             51              Treasurer, Chief Financial Officer and Chief Executive Office
                                              DartAmericA, Inc.
Jeffrey M. Grinstein          41              General Counsel and Secretary
Frances R. Klingle            55              Chief Administrative Officer and Controller
Stephen G. Kilper             42              Chief Executive Officer of Antech Ltd., AWS Remediation, Inc.
                                              American Landfill Management, Inc. and a Director
Kenneth J. McMahon            47              Chief Executive Officer and President of American Waste Management  Services, Inc.
</TABLE>

  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, Chairman of the Board and Chief
Executive Officer since June 1998.  He had been Chairman, Chief Executive
Officer and a director of American Waste Services, Inc. since December 1988.
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 and Controller of Avalon.

  Timothy C. Coxson has been Treasurer and Chief Financial Officer since June
1998.  He has been Chief Executive Officer of DartAmericA, Inc. since December
2001.  He had been Executive Vice President, Finance, Treasurer and Chief
Financial Officer and a director of American Waste Services, Inc. since May
1995.  He received a Bachelor of Business Administration degree in Accounting
from The Ohio State University.

  Jeffrey M. Grinstein has been General Counsel and Secretary since June 1998.
He had been an Executive Vice President, General Counsel and Secretary of
American Waste Services, Inc. since December 1992.  Mr. Grinstein was previously
with the Youngstown, Ohio law firm of Nadler, Nadler & Burdman Co. L.P.A.  He
received his Bachelor of Business Administration degree from Emory University
and his Doctor of Jurisprudence degree from The Ohio State University.

  Frances R. Klingle has been Chief Administrative Officer and Controller since
June 1998.  She had been Controller of American Waste Services, Inc. since June
1986.  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, Chief Executive Officer and a director of Avalon.

  Stephen G. Kilper has been director of Avalon since October 1999.  He has been
Chief Executive Officer of Antech Ltd., AWS Remediation, Inc., and American
Landfill Management Services, Inc. since June 1998.  Mr. Kilper was Executive
Vice President, Disposal Services, and a director of American Waste Services,
Inc. and Chief Executive Officer of its wholly owned disposal subsidiaries from
October 1995 to June 1998.  Mr. Kilper received his degree in Agricultural
Engineering from the University of Wisconsin - Madison.

                                       9
<PAGE>

  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. since September 1996.  Mr. McMahon received a Bachelor of Business
Administration degree in finance and his Master of Business Administration
degree from Youngstown State University.

ITEM 11.  EXECUTIVE COMPENSATION

  The information required by Item 11 is contained under the captions "Meetings
and Committees of the Board" and "Compensation of Directors and Executive
Officers" in the Proxy Statement.  The information under such captions is
incorporated herein by reference, except that information contained under
subpart captions "Board Committee Reports on Executive Compensation" and
"Performance Graph" are specifically not incorporated herein.

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

  Avalon did not have any transactions during fiscal 2001 with any director,
director nominee, executive officer, security holder known to Avalon to own of
record or beneficially more than 5% of Avalon's Common Stock, or any member of
the immediate family of any of the foregoing persons, in which the amount
involved exceeded $60,000.

                                       10
<PAGE>

                                    PART IV

ITEM 14.  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
          2001 Annual Report to Shareholders)
     2.   Financial Statement Schedules required to be filed by Item 8 and
          Paragraph (d) of this Item 14.

     The following financial statement schedule, which is applicable for years
     ended December 31, 2001, 2000 and 1999, 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 14 and 15 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

    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       Avalon Holdings Corporation Long-Term Incentive Plan incorporated
               herein by reference to Avalon Holdings Corporation Registration
               Statement on Form 10, Exhibit 10.2

    11.1       Omitted--inapplicable. See "Basic net income (loss) per share" on
               page 16 of the 2001 Annual Report to Shareholders

    13.1       Avalon Holdings Corporation 2001 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 be
               deemed "filed" as part of the Form 10-K)

    21.1       Subsidiaries of Avalon Holdings Corporation

                                       11
<PAGE>

(b)  Reports on Form 8-K

       On March 12, 2002, Avalon Holdings Corporation disclosed a charge to the
       provision for losses on accounts receivable.

(c)  Reference is made to Item 14 (a)(3) above for the index of Exhibits.

(d)  Reference is made to Item 14 (a)(2) above for the index to the financial
     statements and financial statement schedules.

                                       12
<PAGE>

                                  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 22nd day of March,
2002.

                                  AVALON HOLDINGS CORPORATION
                                  (Registrant)

                                  By /s/ TIMOTHY C. COXSON
                                  ---------------------------------------
                                  Timothy C. Coxson - Treasurer and
                                  Chief 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 22nd day of March, 2002.


     Signatures                                        Title
     ----------                                        -----

/s/ RONALD E. KLINGLE                     Chairman of the Board, Chief
---------------------                     Executive Officer and Director
Ronald E. Klingle


/s/ STEPHEN G. KILPER                     Director
---------------------
Stephen G. Kilper


/s/ SANFORD B. FERGUSON                   Director
-----------------------
Sanford B. Ferguson


/s/ ROBERT M. ARNONI                      Director
--------------------
Robert M. Arnoni


/s/ STEPHEN L. GORDON                     Director
---------------------
Stephen L. Gordon

                                       13
<PAGE>

                         Independent Auditors' Report
                         ----------------------------

The Shareholders and Board of Directors
of Avalon Holdings Corporation:

Under date of March 6, 2002, we reported on the consolidated balance sheets of
Avalon Holdings Corporation and subsidiaries as of December 31, 2001 and 2000,
and the related consolidated statements of operations, shareholders' equity, and
cash flows for each of the three years in the period ended December 31, 2001, as
contained in the 2001 Annual Report to Shareholders.  These consolidated
financial statements and our report thereon are incorporated by reference in the
annual report on Form 10-K for the year 2001.  In connection with our audits of
the aforementioned consolidated financial statements, we also have audited the
2001, 2000 and 1999 information included in the related financial statement
schedule as listed in the accompanying index.  The 2001, 2000 and 1999
information included in the financial statement schedule is the responsibility
of the Company's management.  Our responsibility is to express an opinion on the
2001, 2000 and 1999 information included in the financial statement schedule
based on our audits.

In our opinion, the 2001, 2000 and 1999 information included in the financial
statement schedule, when considered in relation to the basic consolidated
financial statements taken as a whole, presents fairly, in all material
respects, the information set forth therein.


Grant Thornton LLP

Cleveland, Ohio
March 6, 2002

                                       14
<PAGE>

                 AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
                SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
             FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
                            (thousands of dollars)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                Balance at                 Additions
          DESCRIPTION                         Beginning of                                       Deductions   Balance at End of
                                                   Year        ----------------------------------     (1)            Year
                                                               Charged to Costs  Charged to Other
                                                                 and Expenses        Accounts
---------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>          <C>               <C>               <C>          <C>
Allowance for Doubtful Accounts:

Year ended December 31,

  2001...............................             $446             $2,467             $--           $  176           $2,737
                                                  ====             ======             ====          ======           ======

  2000...............................             $790             $  905             $--           $1,249           $  446
                                                  ====             ======             ====          ======           ======

  1999...............................             $740             $  231             $--           $  181           $  790
                                                  ====             ======             ====          ======           ======
</TABLE>

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

                                       15
<PAGE>

                 AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

                                 EXHIBIT INDEX
                           __________________________


               Exhibit
               -------

13.1  2001 Annual Report to Shareholders

21.1  Subsidiaries of Avalon Holdings Corporation

                                       16