<?xml version="1.0"?>
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    <schemaVersion>X0305</schemaVersion>

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    <periodOfReport>2012-06-14</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000911177</issuerCik>
        <issuerName>CASELLA WASTE SYSTEMS INC</issuerName>
        <issuerTradingSymbol>CWST</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001055352</rptOwnerCik>
            <rptOwnerName>CASELLA JOHN W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O CASELLA WASTE SYSTEMS</rptOwnerStreet1>
            <rptOwnerStreet2>25 GREENS HILL LANE</rptOwnerStreet2>
            <rptOwnerCity>RUTLAND</rptOwnerCity>
            <rptOwnerState>VT</rptOwnerState>
            <rptOwnerZipCode>05701</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Executive Officer</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

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                <value>Class A Common Stock</value>
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                    <value>7664</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
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                <sharesOwnedFollowingTransaction>
                    <value>272265</value>
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            </postTransactionAmounts>
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                <directOrIndirectOwnership>
                    <value>D</value>
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        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock</value>
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            <transactionDate>
                <value>2012-06-16</value>
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                <equitySwapInvolved>0</equitySwapInvolved>
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            <securityTitle>
                <value>Class A Common Stock</value>
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                    <value>See Footnote</value>
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        <nonDerivativeHolding>
            <securityTitle>
                <value>Class B Common Stock</value>
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                <sharesOwnedFollowingTransaction>
                    <value>494100</value>
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                    <value>91246</value>
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                    <value>I</value>
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                    <value>See Footnote</value>
                    <footnoteId id="F4"/>
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                    <value>7664</value>
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            <expirationDate>
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                <underlyingSecurityTitle>
                    <value>Class A Common Stock</value>
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                    <value>7664</value>
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                    <value>15328</value>
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                    <value>D</value>
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                <value>Restricted Stock Unit</value>
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                <value>2012-06-16</value>
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                    <value>13424</value>
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                <transactionPricePerShare>
                    <value>0</value>
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                    <value>A</value>
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            <expirationDate>
                <footnoteId id="F6"/>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Class A Common Stock</value>
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                    <value>13424</value>
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                <sharesOwnedFollowingTransaction>
                    <value>13424</value>
                </sharesOwnedFollowingTransaction>
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        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents the award of Restricted Stock Units (&quot;RSUs&quot;) under the Casella Waste Systems, Inc. (&quot;Casella&quot;) 2006 Stock Incentive Plan.  Each RSU represents a contingent right to receive one share of Casella's Class A Common Stock.</footnote>
        <footnote id="F2">These RSUs vest in three equal installments beginning on June 14, 2012, and are being reported upon the vesting pursuant to Section 16(a) of the Securities Exchange Act of 1934 and applicable regulations thereunder.</footnote>
        <footnote id="F3">Held by Mr. Casella's spouse. Mr. Casella disclaims beneficial ownership of the securities to the extent to which he does not have an actual pecuniary interest in such securities.</footnote>
        <footnote id="F4">Held in trust for the benefit of Mr. Casella's children. Mr. Casella disclaims beneficial ownership of these securities  to the extent to which he does not have an actual pecuniary interest in such securities.</footnote>
        <footnote id="F5">Reflects the settlement of vested RSUs for shares of Class A Common Stock.</footnote>
        <footnote id="F6">These RSUs vest in three equal installments beginning on June 16, 2011, and are being reported upon the vesting  pursuant to Section 16(a) of the Securities Exchange Act of 1934 and applicable regulations thereunder.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Shelley S. Field, Attorney in Fact for John W. Casella</signatureName>
        <signatureDate>2012-06-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
