There is need for reclaimed wastewater to offset the significant demand on fresh water by the petrochemical complex in Madras. In view of the present water supply of about 70 l per capita per day (lpcd) for the 4.5 million people of Madras City and water augmentation projects increasing this to a maximum of about 130 lpcd, the Metropolitan Water Supply and Sewage Board (Metrowater) has embarked on projects for the reclamation of municipal wastewater. Over the next 3–4 y the proposed 100 mid reclaimed municipal wastewater supply project will cost an estimated US $ 183 million. Pilot plants, consumer education, industry interaction, technology absorption, and international funding have been instrumental in revealing past and future issues which may affect the current project for reclaiming wastewater. This paper is designed to assist other developing countries which find an industrial water shortage and municipal wastewater inadequately used. © 1996, All rights reserved.