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Information guide from the UK Environmental Agency.
Most greywater recycling systems collect and treat wastewater from showers, baths and wash basins, excluding the more contaminated water from washing machines, kitchen sinks and dishwashers. Greywater recycling systems collect this water, treat it and re-use it for purposes that do not require drinking water quality. This recycled water can be used to flush toilets, water gardens and sometimes feed washing machines.
Greywater recycling systems can be installed in new or existing buildings and have the potential to meet a significant proportion of domestic demand for water.