Okay, let's pretend that you have a big toilet that a lot of people use. When they flush the toilet, all of their "yucky" stuff goes down the drain and into a big pipe. This big pipe carries all of the yucky stuff to a place called a sewage treatment plant.
At the sewage treatment plant, the yucky stuff is separated into three parts. The first part is called "sludge." This is the really sticky and gooey stuff that is left over when all of the water is taken out. The second part is the grey water. This is the water that is leftover after all of the solids are removed. The third part is the treated water.
The sludge is sent off to be treated more because it's still a little bit dirty. The grey water is cleaned up even more so that it can be put into rivers or streams without hurting the fish or bugs that live in them.
The treated water is cleaned up so much that it's almost as clean as the water that comes out of your faucet at home. The clean water is then sent back into the river or stream where it came from. This water can be used by people, animals, and plants further downstream.
So, in short, sewage treatment is like taking all of the gross stuff out of your toilet and cleaning it up so that it's safe to put back into the environment.