Water reuse has traditionally been encouraged as one facet of conserving a limited natural
resource. However, as water demands threaten, at least regionally, to eclipse supply, past policies
are proving inadequate to avoid the flashpoint when reuse of return flows and the interests in
protecting downstream water users and the environment collide. The issues are property rights,
regulatory authority, and the public interest. This paper discusses these issues in the
context of the particular laws of one state, but the emerging principles have far wider application.