It is startling to learn that in the same country India there are states having water requirement met and produced much higher than the required levels prescribed by Central Public Health & Environmental Engineering Organization (CPHEEO) manual for drinking water . Concurrently there are states present in the same country or same zone that are struck by water shortages. Chandigarh City presently provides drinking water at 225 L per capita per day (LPCD) which is much higher than the 150 LPCD norms as per CPHEEO manual . As per the reports collected from the department of Water Supply and Sanitation Punjab which runs Punjab Rural Water Supply and Sanitation Project (PRWSS) engaged in providing potable drinking water to the rural areas at 70 LPCD as compared to 225 LPCD of Chandigarh. Apart from this the neighbouring states are also struggling to meet water requirements for their agricultural and industrial purposes . Reused treated water comes as an option for such neighbouring critical areas. The data collected reflects that Chandigarh city produces tertiary treated water of nearly 216.20 million litres per day whereas some sewage treatment plants after rehabilitation will produce 31.78 million litres per day more treated water for Chandigarh. The use of treated water from one city to another would require a robust design, pipe line layouts and interstate water regulations. The case study here attempts to put light on the possibility that the reuse of treated water can be a boon for neighbouring states facing water crises in their industrial and agricultural areas. The graphs, charts, pareto diagrams and other required data tables have been prepared according to the data collected from the visits. The case study has been conducted by collecting data from the departments working in Chandigarh in water sector which showcase how the challenges to provide water to water shortage states can be mitigated .