Drought-induced water shortages and concern for long-term reliable water supplies are giving impetus to exploring innovative options for water supply. Water pollution control efforts have made available treated effluent, which can be an economical water supply compared with the increasing expense of developing new sources. Poorly conceived planning efforts, however, often lead to the rejection of worthwhile water reclamation and reuse projects or to the implementation of projects that will not achieve the intended goals. This article discusses the critical planning factors in wastewater reclamation and reuse including monetary factors consisting of economic and financial analysis, engineering and public health and presents a systematic approach for the successful implementation of water reuse projects. Includes 8 references, tables, figures.