Goa, a tourist destination known for its alarming scenic beauty has seen a consistently rising trend in hotel occupancy for star category hotels. On an average a luxury hotel would consume approximately 200,000 litres of water per day. The waste water generated from this consumption is basically 30% of black water (sewage) and 70% of grey water (bath water, laundry waste water, etc). A study was carried out to harness the potential of grey water before dumping into water bodies per se. A membrane based bio reactor (MBR) designed for chemical and biological treatment of this waste water includes mechanisms like coagulation, flocculation & separation of the water ludge. The water is then validated for its BOD & COD levels as per the government norms and then membrane filtered to remove total dissolved solids (TDS). This filtered water is then subjected to biological treatment whereas the sludge is used in landfills. EM technology uses commercially available culture of microorganisms, comprising of Lactobacillus, photosynthetic bacteria and yeast for biological treatment of the waste water to render it safe for human use. Monitoring and water quality analysis revealed that microbial treatment considerably reduced the BOD. This innovative technology allows the recycling of waste water which can be made use of for different purposes like gardening, cleaning floors & hotel properties, washing of cars & flushing. Moreover, it requires low foot print and involves easy installation and less maintenance. Recycling of grey water would in turn curtail consumption, thus cutting cost for purchase of water and ensuring safety of consumers. In addition to MBR & EM Technology being economically feasible, safe and user-friendly, its usage is highly recommended to maintain a stable water table and preserve the integrity of the hospitality industry in Goa. It is surely an initiative to minimize water crisis thus maintaining a sustainable ecosystem.