The city of Wichita Falls, Texas is so short of water they will now get 50% of their drinking water directly from wastewater. Sometimes called Toilet to Tap, the wastewater is treated, sanitized and mixed with the city drinking water supply.
You can read and listen to the full story here: Drought-Stricken Texas Town Turns To Toilets For Water
There are many cites that have already made this same move: Los Angeles, El Paso, San Diego ,and Singapore. As water becomes more scares more large cities are looking for ways to quench their thirsty citizens.
You may Read that story here: As "Yuck Factor" Subsides, Treat Wastewater Flows From Taps