Hunter residents have been asked if they support introducing recycled water into the region's drinking water supplies.
The consultation is part of the state government's new draft recycled water roadmap that seeks to expanding water reuse across the state.
Recycled water is already used for a range of non-drinking purposes, however, the draft roadmap looks at removing barriers to increase its use.
Hunter Water has previously committed to increasing the use of recycled water as part of the Lower Hunter water security plan.
Previous surveys have indicated most people are comfortable with using recycled water for non-drinking purposes, however, there remains some hesitancy around drinking recycled water.
That is despite the fact that drinking recycled water, which has been purified to a potable water standard, is common in several parts of the world including Australia.
In Greater Sydney, about 7 per cent of the water supply is recycled, while across the rest of the state about 13 per cent is recycled.
Department of Climate Change, Energy, the Environment and Water executive director water operations and resilience Ashraf El-Sherbini said a secure and affordable water supply for NSW needed to consider the contributions of water recycling.
"Utilities in both metropolitan and regional NSW are currently engaging with their customers to understand their preferences on the use of recycled water, including the potential to add purified recycled water to their future drinking water supplies," he said.
"Purified recycled water for drinking is used safely in around 35 different cities worldwide, including Perth. "However, this pathway would only be considered in NSW after stringent rules and systems were put into place to ensure there were no risks and that our strict water quality standards were met."
The draft roadmap looks at a range of levers the state government can pull over the next two years, including policy development, regulatory changes, investigation of costs, benefits and updating guidance that will facilitate water recycling.
The barriers to water recycling have been identified through consultation with Sydney Water, Hunter Water, WaterNSW, private and local water utilities, local councils, peak bodies, universities, and government agencies.
"Water recycling can play a critical role in helping us drought-proof water supplies and contribute to supporting the delivery of new housing and development in the medium-to-long term and enhancing the liveability of our cities and towns," Mr El-Sherbini said.
"That's why it's critical to lay the groundwork now, working closely with local governments and water utilities to get the detail right so the Roadmap meets the community's needs."
To read the draft Roadmap, register for a webinar and make a submission, visit: water.nsw.gov.au/recycled-water-roadmap
