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The estimated costs to reclaim and reuse wastewater (sewage) effluent as potable water using advanced treatment, including membrane technology, are presented and compared with competing alternatives for effluent disposal. Estimated costs for potable reuse using advanced treatment are compared with: potable water supplies, seawater desalination, wastewater effluent advanced treatment prior to river discharge, and deep ocean disposal of treated effluent. Environmental and non-economic factors related to the potable reuse alternative are also briefly discussed.