The use of treated wastewater effluent for industrial purposes holds the promise of an economical source of water in a State with limited conventional ftesh water resources such as Texas. By combining water reuse and increased water use efficiency with the development of conventional resources such as groundwater and new surface water reservoirs, we can ensure that water is available for industrial growth into the foreseeable future. Reuse holds some specific advantages as a future resource for industry, including: - Effluent from municipal wastewater plants is a drought-proof water source; - Treated eflluent is the ONLY source of water that automatically increases in volume as economic and population growth occurs in the community; and - The treated effluent is usually located near the intended use, not at a yet-to-be developed distant reservoir or well field. In order to provide for the orderly, environmentally sound, and economical development of the State’s water resources, Texas has embarked on a major new water resource planning effort under Senate Bill 1 which was passed by the Texas Legislature in 1997. Industry should carefully follow this process since it provides both an opportunity for industry to make its needs known and specifically provides economic and tax incentives for industries which employ water reuse and water conservation in the future.