Treating waste water would be the best idea - apart from the stigma it creates...I recall seeing that they can make it safer than regular tap water these days...
Should ask the Brisbaners about this - They spent milliions on a system to drink their own piss, then it rained - the reaction by the people, hell we're not going to drink our own piss now!!
Anyway, luckily the Melbourners are close to the sea. All they have to do is fill up their jug with sea water, boil it and capture the steam - plenty of water then.
Cheers