Good quality drinking water in many areas of the world is becoming a scarce commodity and substituting freshwater with recycled water is becoming of growing interest in public water supply systems, not only in poor water deficient countries, but also in the developed nations of the world.The concept of greywater reuse systems is borne out of a need for an economic alternative to developing new sources of water. Greywater is wastewater from baths, showers, sinks and wash basins. This water if well engineered serves as a source of water for uses other than drinking after adequate treatment has been done. Depending on the type of greywater and its level of treatment, it could be reused on-site for ornamental garden and lawn-watering, toilet flushing and laundry. As technology develops there is a growing acceptance of this relatively new concept.This study is aimed at enhancing a greywater cycle model by including economic factors. A financial appraisal has been applied in the form of an effective benefit cost analysis of a recycle scheme. A computer simulation model for the above mentioned economical recycle scheme has been developed. The primary purpose of this simulation model is to investigate the performance of water reuse systems for maximum water savings (P_T) design with high water saving efficiency (E_W). After a series of investigations and system re-configurations, a model which is similar to reality is developed taking economy and feasibility in construction into consideration. Based on a critical analysis of chosen design factors an optimal design for a series of configurations is obtained. The developed model serves as a good guide in the design of greywater reuse facilities in future. Recommendations for future improvement in greywater reuse system design based on the results obtained are also included.