Although, generally, Sewage Treatment Plants are downstream of local Water Treatment Plants, there are some exceptions. In SEQ, where catchments are unprotected from human activity, there are several instances of Sewage Treatment Plants discharging into creeks that feed into drinking water storages. The relatively small volumes of effluent and long retention times make this an accepted practice. However, in some instances, particularly overseas, effluent forms a significant proportion of the raw water supply so advanced treatments are required at the Water Treatment Plants. Some examples... 

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In some communities recycled water can be as high as 90%.

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Communities throughout the world discharge treated (and untreated) wastewater to rivers and streams.  Many communities downstream then use the river as their drinking water supply.

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Planned indirect potable uses have occurred for many years - with no known health issues.  Many utilities worldwide deliberately mimic Nature by recycling through technology.  A few examples are:

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