Abstract
Reuse of wastewater contributes to the decrease in the amounts of water withdrawal as well as its discharges back into receiving water bodies. An integrated system of environmental management with reuse of wastewater will also contribute to enhancement of environmental conservation. This paper deals with a cost allocation problem such that the environmental agency concerned intends to achieve a higher ambient standard of water quality by having water users and the sewerage manager collaborate through developments of a reuse scheme and/or by improving treatment level. The problem is formulated as a multiagent management problem by use of cooperative three person game theory. A set of neccessary conditions for instituting economically viable wastewater reuse systems are derived through mathematical model analyses.
