This article presents a mathematical programming approach to optimize direct recycle-reuse networks together with wastewater treatment processes in order to satisfy a given set of environmental regulations. A disjunctive programming formulation is developed to optimize the recycle/reuse of process streams to units and the performance of wastewater treatment units. In addition to composition-based constraints, the formulation also incorporates in-plant property constraints as well as properties impacting the environment toxicity, ThOD, pH, color, and odor. The MINLP model is used to minimize the total annual cost of the system, which includes the cost for the fresh sources, the piping cost for the process integration and the waste stream treatment cost. An example problem is used to show the application of the proposed model. The results show that the simultaneous optimization of a recycle network and waste treatment process yields significant savings with respect to a commonly-used sequential optimization strategy. (C) 2009 American Institute of Chemical Engineers AIChE J, 55: 23292344, 2009