NOVELTY - Producing fatty acid esters, comprises: (a) esterifying fatty acid or its mixture with lower alkanol in a reactor (12) to form a stream (13) comprising corresponding lower alkyl ester(s) and recovering same; (b) recovering overhead stream (14) from reactor; (c) subjecting recovered overhead stream to distillation to separate lower alkanol from stream (S1); (d) recovering stream (S1); and (e) subjecting stream (S1) to distillation to provide overhead stream comprising lower alkanol and major portion of heavy organic content and water stream having reduced heavy organic and alkanol content.    USE - The process is useful for producing fatty acid esters (claimed), which are useful as biodiesel.    ADVANTAGE - The process utilizes the second distillation column in which the wastewater stream is distilled, and the heavy fatty acid and alkyl ester components are removed as part of the overhead stream giving a waste water stream having a lower chemical oxygen demand, thus facilitating optimal recovery of alkanol and greater recovery of fatty acids; and allows at least a major portion of the heavy organic content to be separated from the water.    DETAILED DESCRIPTION - Producing fatty acid esters comprises: (a) subjecting a fatty acid or its mixture to esterification with a lower alkanol in an esterification reactor (12) maintained under conditions to form a stream (13) comprising the corresponding lower alkyl ester(s) and recovering same; (b) recovering an overhead stream (14) from the reactor comprising unreacted lower alkanol, water, and a heavy organic content comprising at least one lower alkyl ester and/or acids; (c) subjecting the recovered overhead stream to distillation in a first distillation column (15) under conditions to separate a portion of the lower alkanol from a stream (S1) comprising the water, remaining lower alkanol and heavy organic content; (d) recovering the stream (S1); and (e) subjecting the stream (S1) to distillation in a second distillation column (21) under conditions to provide an overhead stream comprising lower alkanol and at least a major portion of the heavy organic content and a water stream having a reduced heavy organic and alkanol content.    DESCRIPTION OF DRAWING(S) - The figure shows a schematic illustration of the process for producing fatty acid esters.    Esterification reactor (12)    Stream comprising corresponding lower alkyl ester (14) Overhead stream (13)    First distillation column (15)    Second distillation column (21)