Climate Change and its effects in water scarcity has become an important challenge for cities with water management problems. These problems require an integral planning of the city, which can be supported by optimization. The main goal of the research is to provide a regional optimization model for water networks, including new treatment options. The model is formulated as a multi objective mixed integer programming problem, focused on environmental and economic impact of the network, minimizing water extracted from natural sources and total cost. The formulation is developed with the goal programming methodology. The model covers a complete existing city scale water network, including 4 different options of water reuse within the city: drinking water, fresh water, irrigation, and discharge in natural courses. The case study is Santiago, capital of Chile, which is the political, economic, and insti tutional center of Chile. If both objective functions have equal importance to configure the solution, the following ideas characterize the optimal water network: (i) it is more environmentally and economically convenient to reuse water within the network rather than recycling water to the natural source; (ii) the reuse of water is preferred in the form of irrigation and drinking qualities rather than industrial qualities to reduce transport costs, and (iii) the modification of the current treatment plants is preferred, because of the high cost of installation of new plants. An environmental and cost effective solution for Santiago, Chile, can reduce the source water extraction in 35.7%. The model can be implemented in other contexts, providing orientations to decision makers so as to plan city scale water networks with simultaneous environmental and economic considerations.