Water reuse is a recognized option for augmenting water supplies to provide for expanded water needs. A methodology is developed for examining optimal strategies for water reuse within the context of the total water resources system, including both the provision of supplies for various uses and management of wastewaters. A model of the water resources system is formulated as a 'transportation' or 'transshipment' problem in linear programming depicting the possible sources of supply, including effluent sources available for reuse, which can be used to satisfy the requirements of various water users. The optimizing objective in the model is to minimize the cost of meeting water supply requirements and of wastewater treatment to satisfy water quality standards. The Lower Jordan River Basin, which encompasses the Salt Lake City, UT, metropolitan area, is used as a case study for applying and testing the model.