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Reuse of wastewater for potable purposes is not a new idea or practice. Several projects in various regions of the country have implemented potable reuse projects over the last few years. Increased costs of future water supplies, dwindling supplies, and increased requirements for wastewater treatment have developed to the point that consideration of expanded intentional direct potable reuse is within the realm of feasibility. This paper examines the conclusions and recommendations of a special committee convened by the State of California Department of Water Resources, and Department of Health Services, Office of Drinking Water and offers some implications for planning, implementing, and managing this resource. The California State Potable Reuse Committee recently completed its deliberations and has set out some conditions for implementation of recycling water for potable purposes. This formalization opens new opportunities which bring new challenges for the water industry. Some water districts and municipalities are stepping up to these challenges and planning implementation of projects. There are implications for water resources planning, in California, and in other areas where either the supply of water is limited or restricted, or where the cost of treatment of existing water supplies is high.