A resort community in the mountains of south-central New Mexico has faced severe water shortages for several years. After a fruitless search for new sources of water, the village has decided to pursue indirect potable reuse of wastewater to supplement the ground water supply. The wastewater plant will be retrofitted with membrane bioreactor technology, followed by reverse osmosis. The wastewater plant effluent will be stored in a reservoir to provide an environmental barrier, then mixed with the existing groundwater supply and treated in a water treatment plant using ultrafiltration and granular activated carbon. The process train was selected to provide redundancy for protecting public health, encourage acceptance by the public, and facilitate regulatory approval. Regulatory issues were challenging because this project is the first planned indirect reuse of wastewater for drinking water in the state of New Mexico.