This paper discusses initiatives and programs that focus on reclaimed water as a key to sustainable development, the progress that has been made to link reclaimed water supplies to planning and the challenges that remain to achieve sustainable development. One movement that is growing rapidly that will significantly promote planning for use of reclaimed water in new development is sustainable or "green" building policies. The U.S. Green Building Council has issued a "Leadership in Energy and Environment DesignTM" program that has been adopted as a guideline by states such as California and Minnesota. Local land use planning agencies are, in turn, adopting these programs as requirements for development. The cities of Oakland and San Jose, California, have requirements that a minimum number of sustainable resources such as reclaimed water are designed into any new project, which are discussed. In the State of California, the passage of Assembly Bill 2095 which went into effect on January 1, 2001, has set the stage for reclaimed water utilities to work with local planning agencies to adopt ordinances to require the use of reclaimed water for purposes specified by the utility. In addition, proposed legislation is circulating in California that would establish a Recycled Water Task Force. Proposed Assembly Bill 331 outlines a task force that consists of representatives from industry and regulatory agencies to review and identify barriers to expanding the use of reclaimed water in the state. Initiatives in other states, such as Florida and Texas, are discussed. Includes 21 references, table, figure.