Municipal wastewater is a major source of water for multiple uses, particularly in water-scarce regions. It is now recognized as a valuable resource rather than a waste stream with a focus toward resource recovery. Tailored technologies, adaptive policies, and regulations, as well as innovative finance mechanisms that create an enabling environment, need to be in place. In doing so, wastewater use should be an essential component in new policies for a circular economy, which aims to decouple economic activity from finite resource consumption. If safely managed, wastewater use can also be an important strategy to alleviate pollution in ecosystems, while producing green business opportunities. There is an increasing diversity of available technologies for resource recovery from wastewater in the presence of major challenges due to a lack of systematic planning and design to identify and implement sustainable solutions in the context of a circular economy and a Nexus thinking approach. Acceptance of reused wastewater by people and policymakers still remains a challenge. This acceptance is linked to many aspects including the general absence of adequate national legislation and the insufficiency of information sharing about the advantages, the progress in technological performance, and the safety regarding the environment and human health. There are still barriers spanning several complex and multiple dimensions that impede, delay, or completely block the expanded use of municipal wastewater. The good news is that options are available and if responsible decision-makers are aware, these barriers can be actively overcome.