I'm really not sure why this is news worthy. Recycled water has been around forever.
When I was a little kid I was first introduced to recycled water when my city decided to start a reclaimed water system to be used or lawn irrigation. This was to help stop our aquifer from being depleted so quickly for frivolous stuff like watering the grass. When they proposed this new system one of the water treatment people drank a glass of recycled water to prove to everyone that it was completely safe and would not pose any heath risks to kids playing in sprinklers or drinking from a hose.
I'd also like to ask, how do people think submarines stay down for so long without coming back up for 10,000 new bottles of Evian bottled water every few days? (yes we have distilling plants on board most ships to convert salt water to fresh but many also have water treatment/recycling plants as well)