Reuse　of　reclaimed　wastewater　is　an　important　part　of　the　sustainable　development　of　urban　water　resource.　Since　the　main　restricting　factors　of　the　wastewater　reuse　are　economics　and　governmental　policies,　analysis　of　realistic　cost　and　benefit　of　water　reclamation　would　be　an　integral　part　of　any　planning　effort.　Agriculture　irrigation　is　considered　a　market　with　the　most　potential　for　municipal　wastewater　reclamation.　This　article　reviewed　the　economic　analysis　of　wastewater　reclamation　and　reuse　in　agriculture　irrigation　in　Israel.　Based　on　the　information　and　extended　to　the　case　of　that　of　Beijing,　the　net　income　from　reclaimed　water　utilized　in　agriculture　irrigation　was　calculated　to　be　2.197　yuan/m3,　including　-0.153　yuan/m3　of　reclaimed　water　capital　investment,　1.3　yuan/m3　of　agricultural　benefit　and　1.05　yuan/m3　allocated　for　environmental　improvement.　It　suggested　that　the　government　should　adjust　policy　to　establish　a　transfer　payment　system　and　to　subsidy　some　cost　of　reclaimed　water　projects.　This　would　speed　up　this　worthwhile　enterprise.