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Optimal policies for supplying rapidly expanding urban centers with additional water supplies are shown to be dependent on water quality goals for the urban effluent. As effluents are required to meet increasingly stringent standards, the unit costs associated with adding capacity to existing wastewater treatment systems to renovate some waters for reuse are shown to substantially decrease. A nonlinear elimination algorithm is developed to delineate optimal policies. A model employing the technique was applied to the wastewater treatment system of a typical urban system and the water quality objectives varied. A comparison of costs with and without various levels of reuse were made and unit costs of reused water under these conditions determined.

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