More than 1000 households in Chisholm and Gilleston Heights near Maitland began receiving recycled water from Hunter Water in May as part of the region's first residential recycled water program.
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The properties included in the scheme have separate plumbing systems for recycled water and potable water.
The recycled water system is indicated by purple tap fittings.
The recycled water can be used for washing clothes, flushing toilets, watering the garden and washing cars.
Households connected to the scheme, which draws water from the Farley and Morpeth wastewater treatment plants, are expected to reduce their use of potable water by about 40 per cent annually.
"With every new development we take every opportunity we can to make drinking water use savings," former Hunter Water managing director Jim Bentley said.
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