Desalination wins out over recycled water ...

Within two years, 30 per cent of the water supplied to Australia's capital cities will flow from the ocean, as water utilities in Melbourne, Adelaide, Sydney and Perth splash $9bn of taxpayers' money on new desalination plants.

By 2013, desalination will be producing more than 450 gigalitres of drinking water - almost the volume of Sydney Harbour - every year.
...

See - The Australian - Water's quick fix a long-term drain.