<PAGE>   1
 
                             LETTER OF TRANSMITTAL
 
   
                         ALLIED WASTE INDUSTRIES, INC.
    
 
   
    OFFER TO EXCHANGE 11.30% SENIOR DISCOUNT NOTES DUE 2007 WHICH HAVE BEEN
                                REGISTERED UNDER
    
   THE SECURITIES ACT OF 1933, AS AMENDED, FOR ANY AND ALL OF THE OUTSTANDING
   
                     11.30% SENIOR DISCOUNT NOTES DUE 2007
    
 
                  THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M.,
   
           NEW YORK CITY TIME, ON DECEMBER 16, 1997, UNLESS EXTENDED
    
 
                                Exchange Agent:
                        FIRST BANK NATIONAL ASSOCIATION
 
   
<TABLE>
<S>                               <C>                               <C>
   By Mail or Delivery Service               By Facsimile                    By Hand Delivery
 First Bank National Association     (Eligible Institutions Only)    First Bank National Association
        First Trust Center                  (612) 224-1537                  First Trust Center
         180 Fifth Street               For Telephone Inquires       Fourth Floor - Bond Drop Window
    St. Paul, Minnesota 55101               (612) 244-1572                   180 Fifth Street
      Attn: Bernice Chapman                                             St. Paul, Minnesota 55101
                                                                          Attn: Bernice Chapman
</TABLE>
    
 
              PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY
                                      AND
                          PRINT OR TYPE ALL RESPONSES
 
   DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR
 TRANSMISSION OF INSTRUCTIONS VIA A FACSIMILE NUMBER OTHER THAN THE ONES LISTED
 ABOVE WILL NOT CONSTITUTE A VALID DELIVERY. THE INSTRUCTIONS ACCOMPANYING THIS
LETTER OF TRANSMITTAL SHOULD BE READ CAREFULLY BEFORE THIS LETTER OF TRANSMITTAL
                                 IS COMPLETED.
 
   
     The undersigned hereby acknowledges receipt of the Prospectus dated July
10, 1997 (the "Prospectus") of Allied Waste Industries, Inc. (the "Company") and
this Letter of Transmittal, which together constitute the Company's offer (the
"Exchange Offer") to exchange $1,000 principal amount of its 11.30% Senior
Discount Notes due 2007 (the "Exchange Notes"), which have been registered under
the Securities Act of 1933, as amended (the "Securities Act"), pursuant to a
Registration Statement of which the Prospectus is a part, for each $1,000
principal amount of its outstanding 11.30% Senior Discount Notes due 2007 (the
"Notes"). The term "Expiration Date" shall mean 5:00 p.m., New York City time,
on December 16, 1997, unless the Company extends the Exchange Offer, in which
case the term shall mean the latest date and time to which the Exchange Offer is
extended. Capitalized terms used but not defined herein have the meaning given
to them in the Prospectus.
    
 
     YOUR BANK OR BROKER CAN ASSIST YOU IN COMPLETING THIS FORM. THE
INSTRUCTIONS INCLUDED WITH THIS LETTER OF TRANSMITTAL MUST BE FOLLOWED.
QUESTIONS AND REQUESTS FOR ASSISTANCE OR FOR ADDITIONAL COPIES OF THE PROSPECTUS
AND THIS LETTER OF TRANSMITTAL MAY BE DIRECTED TO THE EXCHANGE AGENT.
 
   
     List below the Notes to which this Letter of Transmittal relates. If the
space indicated below is inadequate, the Certificate or Registration Numbers and
Principal Amounts should be listed on a separately signed schedule affixed
hereto.
    
--------------------------------------------------------------------------------
                      DESCRIPTION OF NOTES TENDERED HEREBY
 
<TABLE>
<S>                                                            <C>                   <C>                   <C>
------------------------------------------------------------------------------------------------------------------------------
                                                                                      AGGREGATE PRINCIPAL
                                                                   CERTIFICATE OR      AMOUNT REPRESENTED     PRINCIPAL AMOUNT
        NAME(S) AND ADDRESS(ES) OF REGISTERED OWNER(S)         REGISTRATION NUMBERS*        BY NOTES             TENDERED**
 ------------------------------------------------------------------------------------------------------------------------------
 
 ------------------------------------------------------------------------------------------------------------------------------
 
 ==============================================================================================================================
                                                                       TOTAL
 ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
 
   * Need not be completed by Book-entry Holders.
  ** Unless otherwise indicated, the Holder will be deemed to have tendered the
     full aggregate principal amount represented by such Notes. All tenders
     must be in integral multiples of $1,000.
================================================================================
<PAGE>   2
 
   
     This Letter of Transmittal is to be used (i) if certificates of Notes are
to be forwarded herewith, (ii) if delivery of Notes is to be made by book-entry
transfer to an account maintained by the Exchange Agent at The Depository Trust
Company, ("DTC") pursuant to the procedures set forth in "The Exchange
Offer -- Procedures for Tendering" in the Prospectus or (iii) tender of the
Notes is to be made according to the guaranteed delivery procedures described in
the Prospectus under the caption "The Exchange Offer -- Guaranteed Delivery
Procedures." See Instruction 2. Delivery of documents to a book-entry transfer
facility does not constitute delivery to the Exchange Agent.
    
 
     The term "Holder" with respect to the Exchange Offer means any person in
whose name Notes are registered on the books of the Company or any other person
who has obtained a properly completed bond power from the registered holder. The
undersigned has completed, executed and delivered this Letter of Transmittal to
indicate the action the undersigned desires to take with respect to the Exchange
Offer. Holders who wish to tender their Notes must complete this letter in its
entirety.
 
[ ] CHECK HERE IF TENDERED NOTES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER MADE
    TO AN ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH DTC AND COMPLETE THE
    FOLLOWING:
 
  Name of Tendering Institution ________________________________________________
 
  DTC: Account Number __________________________________________________________
 
  Transaction Code Number ______________________________________________________
 
     Holders whose Notes are not immediately available or who cannot deliver
their Notes and all other documents required hereby to the Exchange Agent on or
prior to the Expiration Date must tender their Notes according to the guaranteed
delivery procedure set forth in the Prospectus under the caption "The Exchange
Offer -- Guaranteed Delivery Procedures." See Instruction 2.
 
[ ] CHECK HERE IF TENDERED NOTES ARE BEING DELIVERED PURSUANT TO A NOTICE OF
    GUARANTEED DELIVERY AND COMPLETE THE FOLLOWING:
 
  Name of Registered Holder(s) _________________________________________________
 
  Name of Eligible Institution that Guaranteed Delivery ________________________
 
If delivery by book-entry transfer:
 
  Account Number _______________________________________________________________
 
  Transaction Code Number ______________________________________________________
 
[ ] CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
    COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
    THERETO AND COMPLETE THE FOLLOWING:
 
  Name _________________________________________________________________________
 
  Address ______________________________________________________________________
<PAGE>   3
 
LADIES AND GENTLEMEN:
 
     Upon the terms and subject to the conditions of the Exchange Offer, the
undersigned hereby tenders to the Company the principal amount of the Notes
indicated above. Subject to, and effective upon, the acceptance for exchange of
such Notes tendered hereby, the undersigned hereby exchanges, assigns, and
transfers to or upon the order of the Company all right, title and interest in
and to such Notes as are being tendered hereby, including all rights to accrued
and unpaid interest thereon as of the Expiration Date. The undersigned hereby
irrevocably constitutes and appoints the Exchange Agent the true and lawful
agent and attorney-in-fact of the undersigned (with full knowledge that said
Exchange Agent acts as the agent of the Company in connection with the Exchange
Offer) to cause the Notes to be assigned, transferred and exchanged. The
undersigned represents and warrants that it has full power and authority to
tender, exchange, assign and transfer the Notes and to acquire Exchange Notes
issuable upon the exchange of such tendered Notes, and that when the same are
accepted for exchange, the Company will acquire good and unencumbered title to
the tendered Notes, free and clear of all liens, restrictions, charges and
encumbrances and not subject to any adverse claim.
 
     The undersigned represents to the Company that (i) the Exchange Notes
acquired pursuant to the Exchange Offer are being obtained in the ordinary
course of business of the person receiving such Exchange Notes, whether or not
such person is the undersigned, and (ii) neither the undersigned nor any such
other person has an arrangement or understanding with any person to participate
in the distribution of such Exchange Notes. If the undersigned or the person
receiving the Exchange Notes covered hereby is a broker-dealer that is receiving
the Exchange Notes for its own account in exchange for Notes that were acquired
as a result of market-making activities or other trading activities, the
undersigned acknowledges that it or such other person will deliver a prospectus
in connection with any resale of such Exchange Notes; however, by so
acknowledging and by delivering a prospectus, the undersigned will not be deemed
to admit that it is an "underwriter" within the meaning of the Securities Act.
The undersigned and any such other person acknowledge that, if they are
participating in the Exchange Offer for the purpose of distributing the Exchange
Notes, (i) they cannot rely on the position of the staff of the Securities and
Exchange Commission enunciated in Exxon Capital Holdings Corporation (available
April 13, 1989), Morgan Stanley & Co., Inc. (available June 5, 1991) or similar
no-action letters and, in the absence of an exemption therefrom, must comply
with the registration and prospectus delivery requirements of the Securities Act
in connection with the resale transaction and (ii) failure to comply with such
requirements in such instance could result in the undersigned or any such other
person incurring liability under the Securities Act for which such persons are
not indemnified by the Company. If the undersigned or the person receiving the
Exchange Notes covered by this letter is an affiliate (as defined under Rule 405
of the Securities Act) of the Company, the undersigned represents to the Company
that the undersigned understands and acknowledges that such Exchange Notes may
not be offered for resale, resold or otherwise transferred by the undersigned or
such other person without registration under the Securities Act or an exemption
therefrom. The undersigned also warrants that it will, upon request, execute and
deliver any additional documents deemed by the Exchange Agent or the Company to
be necessary or desirable to complete the exchange, assignment and transfer of
tendered Notes or transfer ownership of such Notes on the account books
maintained by a book-entry transfer facility. The undersigned further agrees
that acceptance of any tendered Notes by the Company and the issuance of
Exchange Notes in exchange therefor shall constitute performance in full by the
Company of its obligations under the Registration Rights Agreement and that the
Company shall have no further obligations or liabilities thereunder for the
registration of the Notes or the Exchange Notes.
 
     The Exchange Offer is subject to certain conditions set forth in the
Prospectus under the caption "The Exchange Offer -- Conditions." The undersigned
recognizes that as a result of these conditions (which may be waived, in whole
or in part, by the Company), as more particularly set forth in the Prospectus,
the Company may not be required to exchange any of the Notes tendered hereby
and, in such event, the Notes not exchanged will be returned to the undersigned
at the address shown below the signature of the undersigned. All authority
herein conferred or agreed to be conferred shall survive the death or incapacity
of the undersigned and every obligation of the undersigned hereunder shall be
binding upon the heirs, personal representatives, successors and assigns of the
undersigned. Tendered Notes may be withdrawn at any time prior to the Expiration
Date.
 
     Unless otherwise indicated under the caption "Special Registration
Instructions" or under the caption "Special Delivery Instructions" in this
Letter of Transmittal, certificates for all Exchange Notes delivered in exchange
for tendered Notes, and any Notes delivered herewith but not exchanged, will be
registered in the name of the undersigned and shall be delivered to the
undersigned at the address shown below the signature of the undersigned. If an
Exchange Note is to be issued to a person other than the person(s) signing this
Letter of Transmittal, or if the Exchange Note is to be mailed to someone other
than the person(s) signing this Letter of Transmittal or to the person(s)
signing this Letter of Transmittal at an address different than the address
shown on this Letter of Transmittal, the information requested under the
appropriate caption in this Letter of Transmittal should be provided. If Notes
are surrendered by Holder(s) that have provided information under either the
caption entitled "Special Registration Instructions" or the caption entitled
"Special Delivery Instructions" in this Letter of Transmittal, signature(s) on
this Letter of Transmittal must be guaranteed by an Eligible Institution (as
defined in Instruction 4).
<PAGE>   4
 
          ------------------------------------------------------------
 
                       SPECIAL REGISTRATION INSTRUCTIONS
 
        To be completed ONLY if the Exchange Notes are to be ISSUED in the
   name of someone other than the undersigned.
 
   Name: _____________________________________________
 
   Address: __________________________________________
  
            __________________________________________
 
            __________________________________________

    ------------------------------------------------------------
 
                         SPECIAL DELIVERY INSTRUCTIONS
 
        To be completed ONLY if the Exchange Notes are to be DELIVERED to
   someone other than the undersigned, or to the undersigned at an address
   other than that shown under "Description of Notes Tendered Hereby."
 
   Name: _____________________________________________
 
   Book-Entry Transfer Facility Account:
 
         _____________________________________________
 
   Address: _________________________________________
 
            __________________________________________
 
            __________________________________________
 
   (Employer Identification or Social Security Number):
 
            __________________________________________
 
            __________________________________________
<PAGE>   5
 
                    REGISTERED HOLDER(S) OF NOTES SIGN HERE
               (IN ADDITION, COMPLETE SUBSTITUTE FORM W-9 BELOW)
 
X
--------------------------------------------------------------------------------
 
X
--------------------------------------------------------------------------------
                     (SIGNATURE(S) OF REGISTERED HOLDER(S))
 
Must be signed by registered holder(s) exactly as name appears on the Notes or
on a security position listing as the owner of the Notes or by person(s)
authorized to become registered holder(s) by properly completed bond powers
transmitted herewith. If signature is by attorney-in-fact, trustee, executor,
administrator, guardian, officer of a corporation or other person acting in a
fiduciary capacity, please provide the following information:
 
Name and Capacity (full title): _______________________________________________
 
_______________________________________________________________________________
 
Address (including zip code): _________________________________________________

_______________________________________________________________________________
 
Area Code and Telephone Number: _______________________________________________
 
Taxpayer Identification or Social Security No.: _______________________________
 
Dated: ___________________
 
                              SIGNATURE GUARANTEE
                       (IF REQUIRED -- SEE INSTRUCTION 4)
 
Authorized Signature (Representative of Signature Guarantor): __________________

________________________________________________________________________________
 
Name and Title: ________________________________________________________________
 
________________________________________________________________________________
 
Name of Plan: __________________________________________________________________
 
________________________________________________________________________________
 
Area Code and Telephone Number: ________________________________________________
 
________________________________________________________________________________
 
Dated: ____________________________
<PAGE>   6
 
                           IMPORTANT TAX INFORMATION
 
   
     Under federal income tax law, a Holder tendering Notes is required to
provide the Exchange Agent with such Holder's correct TIN on Substitute Form W-9
above. If such Holder is an individual, the TIN is the Holder's social security
number. The Certificate of Awaiting Taxpayer Identification Number should be
completed if the tendering Holder has not been issued a TIN and has applied for
a number or intends to apply for a number in the near future. If the Exchange
Agent is not provided with the correct TIN, the Holder may be subject to a $50
penalty imposed by the Internal Revenue Service. In addition, payments that are
made to such Holder with respect to tendered Notes may be subject to backup
withholding. Certain Holders (including, among others, all domestic corporations
and certain foreign individuals and foreign entities) are not subject to these
backup withholding and reporting requirements. Such a Holder, who satisfies one
or more of the conditions set forth in Part 2 of the Substitute Form W-9 should
execute the certification following such Part 2. In order for a foreign Holder
to qualify as an exempt recipient, that Holder must submit to the Exchange Agent
a properly completed Internal Revenue Service Form W-9, signed under penalties
of perjury, attesting to that Holder's exempt status. Such forms can be obtained
from the Exchange Agent. If backup withholding applies, the Exchange Agent is
required to withhold 31% of any amounts otherwise payable to the Holder. Backup
withholding is not an additional tax. Rather, the tax liability of persons
subject to backup withholding will be reduced by the amount of tax withheld. If
withholding results in an overpayment of taxes, a refund may be obtained from
the Internal Revenue Service.
    
 
PURPOSE OF SUBSTITUTE FORM W-9
 
     To prevent backup withholding on payments that are made to a Holder with
respect to Notes tendered for exchange, the Holder is required to notify the
Exchange Agent of his or her correct TIN by completing the form herein
certifying that the TIN provided on Substitute Form W-9 is correct (or that such
Holder is awaiting a TIN) and that (i) each Holder is exempt, (ii) such Holder
has not been notified by the Internal Revenue Service that he or she is subject
to backup withholding as a result of failure to report all interest or dividends
or (iii) the Internal Revenue Service has notified such Holder that he or she is
no longer subject to backup withholding.
<PAGE>   7
 
WHAT NUMBER TO GIVE THE EXCHANGE AGENT
 
     Each Holder is required to give the Exchange Agent the social security
number or employer identification number of the record Holder(s) of the Notes.
If Notes are in more than one name or are not in the name of the actual Holder,
consult the instructions on Internal Revenue Service Form W-9, which may be
obtained from the Exchange Agent, for additional guidance on which number to
report.
 
CERTIFICATE OF AWAITING TAXPAYER IDENTIFICATION NUMBER
 
     If the tendering Holder has not been issued a TIN and has applied for a
number or intends to apply for a number in the near future, write "Applied For"
in the space for the TIN, sign and date the Substitute Form W-9. If such
certificate is completed and the Exchange Agent is not provided with the TIN
within 60 days, the Exchange Agent will withhold 31% of all payments made
thereafter until a TIN is provided to the Exchange Agent.
 
             THIS SUBSTITUTE FORM W-9 MUST BE COMPLETED AND SIGNED
 
   
     Please provide your social security number or other taxpayer identification
number on the following Substitute Form W-9 and certify therein that you are not
subject to backup withholding. Payor: Allied Waste Industries, Inc.
    
 
<TABLE>
<S>                                 <C>
------------------------------------------------------------------------------------------------------
SUBSTITUTE                                TAXPAYER IDENTIFICATION NO.         FOR PAYEES EXEMPT FROM
FORM W-9                                                                        BACKUP WITHHOLDING
DEPARTMENT OF THE TREASURY          ---------------------------------------
INTERNAL REVENUE SERVICE            Enter your tax identification number in the appropriate box.
Payer's Request for Taxpayer        For most individuals, this is your social security number.
Identification Number (TIN)
                                    ---------------------------------------------------------------
                                                      Social security number
                                    ---------------------------------------------------------------
                                                    OR
                                    ---------------------------------------------------------------
                                                      Employer identification number
                                    ---------------------------------------------------------------
------------------------------------------------------------------------------------------------------
 CERTIFICATION -- Under penalties of perjury, I certify that:
 (1) The information provided on this form is true, correct and complete; AND
 (2) I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I
     have not been notified by the Internal Revenue Service ("IRS") that I am subject to backup
     withholding as a result of a failure to report all interest or dividends or (c) the IRS has
     notified me that I am no longer subject to backup withholding; AND
 (3) I am not a nonresident alien individual or foreign entity.
------------------------------------------------------------------------------------------------------
 SIGNATURE ____________________________________________________________DATE ____________________, 199
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   8
 
                   INSTRUCTIONS TO THE LETTER OF TRANSMITTAL
         FORMING PART OF THE TERMS AND CONDITIONS OF THE EXCHANGE OFFER
 
1.  DELIVERY OF LETTER OF TRANSMITTAL AND CERTIFICATES.
 
     All physically delivered Notes or confirmation of any book-entry transfer
to the Exchange Agent's account at a book-entry transfer facility of Notes
tendered by book-entry transfer, as well as a properly completed and duly
executed copy of this Letter of Transmittal or facsimile thereof, and any other
documents required by this Letter of Transmittal, must be received by the
Exchange Agent at any of its addresses set forth herein on or prior to the
Expiration Date (as defined in the Prospectus). The method of delivery of this
Letter of Transmittal, the Notes and any other required documents is at the
election and risk of the Holder, and except as otherwise provided below, the
delivery will be deemed made only when actually received by the Exchange Agent.
If such delivery is by mail, it is suggested that registered mail with return
receipt requested, properly insured, be used. No alternative, conditional,
irregular or contingent tenders will be accepted. All tendering Holders, by
execution of this Letter of Transmittal (or facsimile thereof), shall waive any
right to receive notice of the acceptance of the Notes for exchange. Delivery to
an address other than as set forth herein, or instructions via a facsimile
number other than the ones set forth herein, will not constitute a valid
delivery.
 
2.  GUARANTEED DELIVERY PROCEDURES.
 
     Holders who wish to tender their Notes, but whose Notes are not immediately
available and thus cannot deliver their Notes, the Letter of Transmittal or any
other required documents to the Exchange Agent (or comply with the procedures
for book-entry transfer) prior to the Expiration Date, may effect a tender if:
 
          (a) the tender is made through a member firm of a registered national
     securities exchange or of the National Association of Securities Dealers,
     Inc., a commercial bank or trust company having an office or correspondent
     in the United States or an "eligible guarantor institution" within the
     meaning of Rule 17Ad-15 under the Exchange Act (an "Eligible Institution");
 
          (b) prior to the Expiration Date, the Exchange Agent receives from
     such Eligible Institution a properly completed and duly executed Notice of
     Guaranteed Delivery (by facsimile transmission, mail or hand delivery)
     setting forth the name and address of the Holder, the registration
     number(s) of such Notes and the principal amount of Notes tendered, stating
     that the tender is being made thereby and guaranteeing that, within three
     New York Stock Exchange trading days after the Expiration Date, the Letter
     of Transmittal (or facsimile thereof), together with the Notes (or a
     confirmation of book-entry transfer of such Notes into the Exchange Agent's
     account at DTC) and any other documents required by the Letter of
     Transmittal, will be deposited by the Eligible Institution with the
     Exchange Agent; and
 
          (c) such properly completed and executed Letter of Transmittal (or
     facsimile thereof), as well as all tendered Notes in proper form for
     transfer (or a confirmation of book-entry transfer of such Notes into the
     Exchange Agent's account at DTC) and all other documents required by the
     Letter of Transmittal, are received by the Exchange Agent within three New
     York Stock Exchange trading days after the Expiration Date.
 
UPON REQUEST TO THE EXCHANGE AGENT, A NOTICE OF GUARANTEED DELIVERY WILL BE SENT
TO HOLDERS WHO WISH TO TENDER THEIR NOTES ACCORDING TO THE GUARANTEED DELIVERY
PROCEDURES SET FORTH ABOVE. ANY HOLDER WHO WISHES TO TENDER NOTES PURSUANT TO
THE GUARANTEED DELIVERY PROCEDURES MUST ENSURE THAT THE EXCHANGE AGENT RECEIVES
THE NOTICE OF GUARANTEED DELIVERY RELATING TO SUCH NOTES PRIOR TO THE EXPIRATION
DATE. FAILURE TO COMPLETE THE GUARANTEED DELIVERY PROCEDURES WILL NOT, OF
ITSELF, AFFECT THE VALIDITY OR EFFECT A REVOCATION OF ANY LETTER OF TRANSMITTAL
FORM PROPERLY COMPLETED AND EXECUTED BY A HOLDER WHO ATTEMPTED TO USE THE
GUARANTEED DELIVERY PROCEDURES.
<PAGE>   9
 
3.  PARTIAL TENDERS; WITHDRAWALS.
 
     If less than the entire principal amount of Notes evidenced by a submitted
certificate is tendered, the tendering Holder should fill in the principal
amount tendered in the column entitled "Principal Amount Tendered" of the box
entitled "Description of Notes Tendered Hereby." A newly issued Note for the
principal amount of Notes submitted but not tendered will be sent to such Holder
as soon as practicable after the Expiration Date. All Notes delivered to the
Exchange Agent will be deemed to have been tendered in full unless otherwise
indicated. NOTES TENDERED PURSUANT TO THE EXCHANGE OFFER MAY BE WITHDRAWN AT ANY
TIME PRIOR TO THE EXPIRATION DATE, AFTER WHICH TENDERS OF NOTES ARE IRREVOCABLE.
To be effective, a written, telegraphic or facsimile notice of withdrawal must
be timely received by the Exchange Agent. Any such notice of withdrawal must (i)
specify the name of the person having deposited the Notes to be withdrawn (the
Depositor"), (ii) identify the Notes to be withdrawn (including the registration
number(s) and principal amount of such Notes, or, in the case of Notes
transferred by book-entry transfer, the name and number of the account at DTC to
be credited), (iii) be signed by the Holder in the same manner as the original
signature on the Letter of Transmittal (including any required signature
guarantees) or be accompanied by documents of transfer sufficient to have the
Trustee with respect to the Notes register the transfer of such Notes into the
name of the person withdrawing the tender and (iv) specify the name in which any
such notes are to be registered, if different from that of the Depositor. All
questions as to the validity, form and eligibility (including time of receipt)
of such notices will be determined by the Company, whose determination shall be
final and binding on all parties. Any Notes so withdrawn will be deemed not to
have been validly tendered for purposes of the Exchange Offer and no Exchange
Notes will be issued with respect thereto unless the Notes so withdrawn are
validly retendered. Any Notes which have been tendered but which are not
accepted for exchange, will be returned to the Holder thereof without cost to
such Holder as soon as practicable after withdrawal, rejection of tender or
termination of Exchange Offer.
 
4.  SIGNATURE ON THIS LETTER OF TRANSMITTAL; WRITTEN INSTRUMENTS AND
ENDORSEMENTS; GUARANTEE OF SIGNATURES.
 
   
     If this Letter of Transmittal is signed by the registered Holder(s) of the
Notes tendered hereby, the signature must correspond with the name(s) as written
on the face of the certificates without alternation or enlargement or any change
whatsoever. If this Letter of Transmittal is signed by a participant in DTC, the
signature must correspond with the name as it appears on the security position
listing as the owner of the Notes. IF ANY OF THE NOTES TENDERED HEREBY ARE OWNED
OF RECORD BY TWO OR MORE JOINT OWNERS, ALL SUCH OWNERS MUST SIGN THIS LETTER OF
TRANSMITTAL. IF A NUMBER OF NOTES REGISTERED IN DIFFERENT NAMES ARE TENDERED, IT
WILL BE NECESSARY TO COMPLETE, SIGN AND SUBMIT AS MANY SEPARATE COPIES OF THIS
LETTER OF TRANSMITTAL AS THERE ARE DIFFERENT REGISTRATIONS OF NOTES. Signatures
of this Letter of Transmittal or a notice of withdrawal, as the case may be,
must be guaranteed by an Eligible Institution unless the Notes tendered hereby
are tendered (i) by a registered Holder who has not provided information under
the caption "Special Registration Instructions" or "Special Delivery
Instructions" on the Letter of Transmittal or (ii) for the account of an
Eligible Institution. If the Letter of Transmittal is signed by the registered
Holder(s) of Notes (which term, for the purposes described herein, shall include
a participant in DTC whose name appears on a security listing as the owner of
the Notes) listed and tendered hereby, no endorsements of the tendered Notes or
separate written instruments of transfer or exchange are required. In any other
case, the registered Holder (or beneficial Holder) must either properly endorse
the Notes or transmit properly completed bond powers with the Letter of
Transmittal (in either case, executed exactly as the name(s) of the registered
Holder(s) appear(s) on the Notes, and, with respect to a participant in DTC
whose name appears on a security position listing as the owner of Notes, exactly
as the name of the participant appears on such security position listing), with
the signature on the Notes or bond power guaranteed by an Eligible Institution
(except where the Notes are tendered for the account of an Eligible
Institution). If this Letter of Transmittal, any certificates or separate
written instruments of transfer or exchange are signed by trustees, executors,
administrators, guardians, attorneys-in-fact, officers of corporations or others
acting in a fiduciary or representative capacity, such persons should so
indicate when signing, and, unless waived by the Company, proper evidence
satisfactory to the Company of their authority so to act must be submitted.
    
<PAGE>   10
 
5.  SPECIAL REGISTRATION AND DELIVERY INSTRUCTIONS.
 
     Tendering Holders should indicate, in the applicable box, the name and
address (or account at DTC) in which the Exchange Notes or substitute Notes for
principal amounts not tendered or not accepted for exchange are to be issued (or
deposited), if different from the names and addresses or accounts of the person
signing this Letter of Transmittal. In the case of issuance in a different name,
the employer identification number or social security number of the person named
must also be indicated and the tendering Holder should complete the applicable
box. If no instructions are given, the Exchange Notes (and any Notes not
tendered or not accepted) will be issued in the name of and sent to the
beneficial Holder of the Notes or deposited at such Holder's account at DTC.
 
6.  TRANSFER TAXES.
 
     The Company shall pay all transfer taxes, if any, applicable to the
transfer and exchange of Notes to it or its order pursuant to the Exchange
Offer. If a transfer tax is imposed for any other reason other than the transfer
and exchange of Notes to the Company or its order pursuant to the Exchange
Offer, the amount of any such transfer taxes (whether imposed on the registered
Holder or any other person) will be payable by the tendering Holder. If
satisfactory evidence of payment of such taxes or exception therefrom is not
submitted herewith, the amount of such transfer taxes will be collected from the
tendering Holder by the Exchange Agent. Except as provided in this Instruction
6, it will not be necessary for transfer stamps to be affixed to the Notes
listed in this Letter of Transmittal.
 
7.  WAIVER OF CONDITIONS; MUTILATED, LOST, STOLEN OR DESTROYED NOTES; VALIDITY
AND FORM.
 
     The Company reserves the right, in its reasonable judgment, to waive, in
whole or in part, any of the conditions to the Exchange Offer set forth in the
Prospectus. Any Holder whose Notes have been mutilated, lost, stolen or
destroyed should contact the Exchange Agent at the address indicated above for
further instructions. All questions as to the validity, form, eligibility
(including time of receipt), acceptance of tendered Notes and withdrawal of
tendered Notes will be determined by the Company in its sole discretion, which
determination will be final and binding. The Company reserves the absolute right
to reject any and all Notes not properly tendered or any Notes the Company's
acceptance of which would, in the opinion of counsel for the Company, be
unlawful. The Company also reserves the right, in its reasonable judgment, to
waive any defects, irregularities or conditions of tender as to particular
Notes. The Company's interpretation of the terms and conditions of the Exchange
Offer (including the instructions in this Letter of Transmittal) will be final
and binding on all parties. Unless waived, any defects or irregularities in
connection with tenders of Notes must be cured within such time as the Company
shall determine. Although the Company intends to notify Holders of defects or
irregularities with respect to tenders of Notes, neither the Company, the
Exchange Agent nor any other person shall incur any liability for failure to
give such notification. Tenders of Notes will not be deemed to have been made
until such defects or irregularities have been cured or waived. Any Notes
received by the Exchange Agent that are not properly tendered and as to which
the defects or irregularities have not been cured or waived will be returned by
the Exchange Agent to the tendering Holder as soon as practicable following the
Expiration Date.
 
8.  REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES.
 
   
     Questions relating to the procedure for tendering as well as requests for
additional copies of the Prospectus and this Letter of Transmittal, may be
directed to the Exchange Agent at the address and telephone number(s) set forth
above. In addition, all questions relating to the Exchange Offer, as well as
requests for assistance or additional copies of the Prospectus and this Letter
of Transmittal, may be directed to Allied Waste Industries, Inc., 15880 North
Greenway/Hayden Loop, Suite 100, Scottsdale, Arizona 85260, Attn: Investor
Relations, telephone (602) 423-AWIN.
    
 
THIS LETTER OF TRANSMITTAL OR A FACSIMILE THEREOF (TOGETHER WITH NOTES OR
CONFIRMATION OF BOOK-ENTRY TRANSFER AND ALL OTHER REQUIRED DOCUMENTS) OR A
NOTICE OF GUARANTEED DELIVERY MUST BE RECEIVED BY THE EXCHANGE AGENT ON OR PRIOR
TO THE EXPIRATION DATE.