Water resource management has become a challenge in developing countries as the infrastructural development has not kept pace with population growth and urbanization. Even though India is endowed with a network of rivers, the level of water resource availability is still insufficient to meet national demand. With the issues of water scarcity, the wastewater reuse is one of the important methods to save water resource. In the present work, we have discussed the critical issues and opportunities of reusing the wastewater, which helps to overcome the demand of water supply. We have also suggested the recommendations and policy implementations for safe consumption of wastewater reuse in irrigation and various purposes. This article shows the importance of wastewater utilization, and the new and innovative technology and policies which encourage the use of wastewater as a new or reuse resource. The reusing wastewater address the problem of water scarcity and other environmental problems, which reflect the need of environment assessment and able to achieve sustainable management of wastewater.