Reuse of municipal wastewater is increasing worldwide due to droughts, stringent wastewater discharge requirements, nutrient recycling, costs of developing new sources, and prevention of saltwater intrusion. Discussed is a simple economic model that will enable better understanding of why wastewater is reused in certain circumstances but not in others. The characteristics of wastewater influence decisions concerning reuse. It is the quality of the water that ultimately determines whether or not it will be reused. Reuse of municipal wastewaters can be used for a variety of purposes including the following: agricultural production; industrial processing; industrial cooling; groundwater recharge; recreation; and municipal consumption. Includes 1 reference, figures.