Citizens of North Carolina have long believed that they live in a water-rich state. In a comparative sense, this is true. Water supplies for North Carolina's large population centers are primarily from surface water sources. If present usage pattern and population growth trends continue, these sources are adequate to meet demand until at least 2015 and perhaps until 2035. This is in sharp contrast with many States that now struggle with depleted groundwater sources, water rights controversy and litigation, and very strict conservation mandates. Why, then, should water utilities in North Carolina be concerned with water reclamation and reuse? This paper will answer this question and summarize the issues that have effectively blocked development of a viable reuse program in North Carolina. Efforts of the Charlotte-Mecklenburg Utility Department to overcome these roadblocks and incorporate reclamation and reuse into its long term water management strategy are also described.