The wastewater reuse system of Limassol, the second largest urban area of Cyprus, with about 200,000 inhabitants, is in operation since 1995. The high quality effluent with an annual flow of about 3.5 million m(3) is fully recycled and used for many purposes such as groundwater recharge, restricted irrigation such as public amenity areas, golf courses, etc., but excluding vegetable and similar irrigation. Wastewater reuse has the main advantage of environmental protection and upgrading whilst at the same time it offers an alternative water resource, with a marginal cost much lower than the cost of desalinated water. The marginal cost for tertiary treatment is also much less than the cost paid for dam water or desalinated water. As a results recycled water provides the potential for the utilization of the national water resources in the most economical and efficient way, providing to the national economy great savings in real terms. In conclusion the Limassol reclaimed water reuse scheme has demonstrated in practice that domestic wastewater is a valuable resource which can and should be used in order not only to combat the water shortage in our country in an economical way, but also to upgrade and maintain the environment which is constantly under tremendous pressure and violation.