A method of treating liquid including mixing coagulant with the liquid, introducing mixed coagulant and liquid into a primary reaction zone, containing an agitator, of a reactor which is substantially concentrically positioned with respect to a secondary reaction zone of the reactor, introducing flocculant into the primary reaction zone at a location between the agitator and where the mixed coagulant and liquid are introduced into the primary reaction zone, mixing the mixed coagulant and liquid with the flocculant and causing the resulting mixture to flow into the secondary reaction zone, introducing an encapsulating agent into the secondary reaction zone, recirculating the liquid and encapsulated flocs through the primary and secondary reaction zone, and passing the liquid and encapsulated flocs outwardly of the reactor, and an apparatus for treating liquids including a reactor, a draft tube substantially concentrically positioned within the reactor and being positioned such that the liquids may flow inwardly and outwardly of the draft tube from opposed end portions of the draft tube, wherein space inwardly of the draft tube forms a primary mixing zone and space in the reactor, but outwardly of the draft tube forms a secondary mixing zone, an agitator positioned within the draft tube, an inlet positioned approximate one end portion of the draft tube which introduces liquid and coagulant into the primary mixing zone, an inlet connected to the draft tube and positioned between the agitator and the end portion of the draft tube through which coagulant and liquid are introduced into the primary mixing zone, an encapsulating agent inlet positioned in the secondary reaction zone between the opposed end portions of the draft tube, and an outlet downstream of the encapsulating agent inlet.