The aim of this paper is to assess the role of greywater reuse in sustainable water management in and regions. Moreover, it intends to document the experience of greywater reuse in Jordan. Greywater (GW) is the water collected separately from sewage flow that originates from clothes washers, bathtubs, showers and sinks, but does not include wastewater from kitchen sinks, dishwashers, or toilets. Dish, shower, sink, and laundry water comprise 50-80% of residential wastewater. GW is used in groundwater recharge, landscaping, and plant growth. A case study on GW reuse in Jordan is presented to shed some lights on its role in sustainable water management. To operationalize this concept, water is viewed as an economic good and a finite resource that should be valued and managed in a rational manner. The study concluded that current environmental policies should aim to control pollution and to maximize recycling and reuse of GW within households and communities. Decentralized GW/wastewater management offers more opportunities for maximizing recycling opportunities.