A septic tank is a buried, water-tight unit designed for sludge digestion and sedimentation, appropriate for populations up to 300. It allows solids to settle, while scum floats, and the effluent is later released to percolate into the soil, removing harmful contaminants. The design and maintenance of septic tanks have advantages like low construction costs and easy maintenance, but also face challenges such as potential environmental pollution and the need for regular sludge removal.