Due to the likely toughening of environmental legislation in near future, many of the currently operating wastewater treatments are no longer acceptable and need to significantly increase their efficiency. Stricter regulations are found for especially sensitive areas, drinking water abstraction areas and bathing waters. The problem of meeting existing and forecasted more stringent new regulations affects especially small communities, hotels campsites in relative remote areas without access to sophisticated wastewater treatment plants. Since a couple of years southern European countries observe on the one hand high water demands during the summer season (tourism, agriculture, horticulture, etc.). On the other hand these countries are facing a water scarcity in an so far unknown dimension. The IWAPIL project offers an innovative membrane bioreactor(MBR) intended for use in remote communities, mountain hotels, campsites. This decentralised system with the size of a standard container is based on submerged membrane module and highly automated control which ensures low-maintenance costs and a extremely high quality effluent which can be even reused for irrigation or toilet flushing purposes, as it is totally germ free. The IWAPIL pilot plant was designed to treat the wastewater of 50 PE and was tested under practical conditions fro seven months by treatment of grey- and blackwater from two campsites in Spain and Italy, respectively. The purification efficiency was characterized by very high COB, BOD5 and Nitrogen removal rates in combination with an at the end five times higher treatment capacity than originally designed. The permeate quality allowed water re-use on site, e.g. for irrigation purposes. The poster presents of test results in the two locations. The results are accompanied by a economic comparison of the IWAPIL system with SBR technology that indicates a high economic potential of the IWAPIL technology as a concept for decentralised wastewater treatment and re-use in remote areas. The project was supported by the Co-operative Research Program in the Sixth Framework Programme of the European Community for research, technological development and demonstration activities (COOP-CT-2004-208144.