A system and method of collecting and disposing of fluid during a medical procedure. Fluid is drawn from a fluid source into a first reservoir in communication with a vacuum source. The fluid passes through an open fluid transfer valve into a second reservoir in communication with the vacuum source. While the fluid continues to be drawn into the first reservoir, the fluid transfer valve is closed after a predetermined volume of the fluid passes into the second reservoir. The fluid collected in the second reservoir is measured and evacuated from the second reservoir. The fluid transfer valve is opened and the steps are repeated until the medical procedure is completed while the first reservoir remains in uninterrupted communication with the vacuum source during the medical procedure such that fluid is capable of continuing to be drawn into the first reservoir without interruption.