The emergence of a global water crisis has seen the necessity for a sustainable approach to water management. Policies directed towards water recycling have been implemented in many regions of the world. In Australia, prolonged drought conditions in most major cities during the past decade have led to serious national calls for less drinking water to be used (Prime Minister's Science Engineering and Innovation Council, 2003), and a strategic policy response from many State Governments, including bold targets for water recycling. A key consideration to the realisation of these policies is greater understanding of community attitudes to recycled water use, without which, a number of recycled water projects have failed (Hurlimann and McKay, 2004). Despite the critical nature of community attitudes, little research has been conducted, especially in relation to perception of risk, which has been found to be critical in the adoption of new technologies (Cvetkovich and Lofstedt, 1999). This paper investigates an urban Australian community's perception of risk involved with using recycled water. Key findings include: perception of risk increased as the use of recycled water became increasingly personal. Perception of risk was significantly negatively related to trust, perception of fairness and information. Trust in the Water Authority to manage risk was significantly related to perception of trust, communication and integrity of the Authority.