BOSTON (UI) — Water reuse projects across the United States are projected to drive nearly $47.1 billion in infrastructure investment through 2035, according to a new market report from Bluefield Research.

The report, U.S. Municipal Water Reuse: Market Trends and Forecasts, 2025–2035, highlights growing momentum for recycling treated wastewater as communities seek resilient and sustainable water supplies. Roughly 42% of the projected spending will go toward advanced treatment technologies, while conveyance pipelines—often referred to as “purple pipes”—and engineering design work will account for another 52%.

More than 600 projects are currently in planning or development nationwide, supported by new state-level regulations and changing water demands across urban, agricultural, and industrial sectors.

By 2035, potable reuse systems—where treated water is purified for drinking—are expected to represent 37% of new reuse capacity, worth about $19.9 billion. States such as California, Florida, Colorado, and Arizona have already adopted direct potable reuse regulations, while New Mexico, Utah, Kansas, and Nevada are pursuing pilot projects.

“Irrigation applications make up the foundational application for water reuse,” said Bluefield analyst Megan Bondar. “Large potable reuse projects such as the Groundwater Replenishment System in Orange County, California, and the SWIFT project in Virginia’s Hampton Roads Sanitation District are showcasing a change in receptiveness among municipal decision makers.”

The report identifies California, Texas, Florida, and Colorado as key growth markets, together accounting for more than 85% of upcoming reuse capacity. While western states remain dominant, Bluefield said momentum is shifting eastward as projects in Virginia, New York, and New Jersey aim to combat saltwater intrusion and improve water quality.

Industrial reuse is also emerging as a major growth driver, particularly among data center operators in regions such as Virginia’s Loudoun County, where reclaimed water networks already deliver more than 800 million gallons annually.

Bondar added, “It makes strategic sense for industrial facilities to source treated water directly from wastewater utilities—treated water that would otherwise be discharged into rivers or other surface waters.”

As policy, technology, and industrial demand align, Bluefield expects water reuse to move from a niche solution to a mainstream component of the nation’s long-term water strategy.