In a decisive step towards ensuring water sustainability and advancing a circular economy in urban development, the Government of Odisha has notified the “Policy on Reuse of Treated Used Water (TUW) of Urban Odisha, 2026.”
The policy provides a comprehensive roadmap to transform used water from a waste by-product into a valuable economic resource, addressing the growing seasonal and spatial water stress across urban centres of the state.
It sets ambitious and time-bound targets, including achieving 100% collection, conveyance, and treatment of used water across all Urban Local Bodies (ULBs) by 2030, ensuring at least 20% reuse of treated water by the same year, and scaling up reuse to a minimum of 50% by 2036.
At present, Odisha generates approximately 1,104 MLD of used water, of which only about 190 MLD is treated, and the policy seeks to bridge this gap by mandating treatment and ensuring adherence to prescribed safety standards for non-potable applications.
The policy promotes the use of treated water across multiple sectors to reduce dependence on freshwater sources, including municipal and institutional uses such as road cleaning, firefighting, sanitation, gardening, and HVAC systems; industrial applications such as power plants, boiler feed, cooling, and construction; and agricultural and environmental uses, including irrigation, wetland management, and 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 in cities where sewerage systems and sewage treatment plants are already operational, at least 20% reuse must be achieved within six months of notification, while in areas under development, targets will apply within six months of commissioning of the infrastructure.
Aligned with the National Framework on Safe Reuse of Treated Water (2023) and the objectives of AMRUT 2.0, the policy positions Odisha as a leading state in sustainable urban water management and environmental stewardship.
