Part of the duties of Waste Disposal were jettisoning the Red Dwarf garbage pods from the Garbage Hold. This was why Holly and Lister both knew what a recently recovered garbage pod actually was, and for a time they both let Rimmer believe that the pod contained his "aliens". (Waiting for God, Series I)
The garbage hold was also the destination of Talkie Toaster after annoying Lister one too many times, after first being on the receiving end of a lump hammer. Kryten however retrieved and rebuilt Talkie Toaster, as as part of an experiment in "intelligence compression" to make Holly a genius again. (White Hole, Series IV)
The garbage hold was connected to the rest of the ship by pneumatic tubes. The tube connecting to Bay 47 was once the receptacle of Kryten's head, which took Kryten two hours to retrieve. This occurred during the time that they had been sealed in Bay 47 by Rimmer, and had all been getting on each others nerves due to lengthy confinement. (Quarantine, Series V)
Waste Disposal was host to a "Waste Grinder", which could grind up garbage and flush it out into space.
Lister's confidence and paranoia were once manifested into living people by space pneumonia, named Confidence and Paranoia. Confidence smashed up the Medicomp so that Lister couldn't be cured. The airlocks were sealed by Holly due to a massive space storm of dust. Confidence killed Paranoia by feeding him into the Waste Grinder and flushing him out into space, since he wanted Lister all to himself. (RD: Confidence and Paranoia, Series I)
Starbug had a waste compactor to crush garbage into cubes. When the gang had lost their mothership, but before they acquired laser cannons, they used these garbage cubes with nitroglycerin to explode any asteroids which came dangerously close to Starbug.
When a Psiren infiltrated Starbug from the asteroid belt, it pretended to be Professor Mamet, the creator of mechanoids, and ordered Kryten to get into the waste compactor. Forced to obey her commands, Kryten was crushed into a cube, but was still alive. The cube-shaped Kryten was able to save the others by throwing himself off a gantry onto the Psiren's head. (RD: Psirens, Series VI)