Bhubaneswar: To promote water sustainability and foster a circular economy in urban development, the Odisha government on Tuesday notified the Policy on Reuse of Treated Used Water (TUW) of Urban Odisha, 2026.
The comprehensive policy aims to convert used water from a waste product into a valuable economic resource, helping address the state’s growing seasonal and spatial water stress in urban areas. It lays down ambitious, time-bound targets: achieving 100% collection, conveyance, and treatment of used water in all Urban Local Bodies (ULBs) by 2030, with at least 20% reuse of treated water in the same year, and scaling up reuse to a minimum of 50% by 2036.
Currently, Odisha generates around 1,104 million litres per day (MLD) of used water, but only about 190 MLD is being treated. The new policy seeks to close this gap by making treatment mandatory across urban areas and enforcing strict safety standards for non-potable applications. The policy encourages widespread adoption of treated used water across various sectors to reduce pressure on freshwater sources. Key areas of application include municipal and institutional uses such as road cleaning, firefighting, sanitation, gardening, and air-conditioning systems; industrial purposes like power plants, boiler feed, cooling towers, and construction activities; as well as agri
cultural and environmental needs including irrigation, wetland management, and the rejuvenation of urban water bodies.
To drive adoption, an innovative TUW Tariff Model has been introduced, ensuring that treated water is priced lower than potable water, alongside incentives such as water credits for farmers, tariff rebates and Viability Gap Funding (VGF) support for industries, and rebates for residential societies using treated water for flushing and landscaping, complemented by performance-linked incentives and disincentives to ensure compliance.
A robust multi-tier governance structure has been put in place, with a State High Powered Committee (SHPC) as the apex body for policy and pricing decisions, supported by a State Level Technical Committee (SLTC) and a dedicated Treated Used Water Cell, while District Coordination Committees will facilitate local implementation and demand aggregation.
The Housing & Urban Development Department will oversee regulation and standards, with agencies such as OWSSB, WATCO, and PHEO responsible for infrastructure development and operations, and the Odisha Urban Academy (OUA) leading capacity building and research initiatives. The policy mandates that cities with existing sewerage systems and sewage treatment plants must achieve at least 20% reuse of treated water within six months of the notification. In areas where infrastructure is still under development, the reuse targets will apply within six months of commissioning.
The initiative is aligned with the National Framework on Safe Reuse of Treated Water (2023) and the goals of AMRUT 2.0. By taking this forward-looking step, Odisha aims to emerge as a frontrunner in sustainable urban water management and environmental conservation.