Water is a vital element for every life on this planet and an essential contributor to economic development. The current unsustainable economic growth, which relies on linear economy (LE), is threatening the planet’s valuable water resources through depletion and contamination. Therefore, this chapter envisages reclaimed domestic wastewater reuse in irrigation based on Circular Economy (CE) approach. Accordingly, this chapter begins with an overview of the concept of CE for water and wastewater sectors. Then it introduces the Life Cycle Sustainability Assessment (LCSA) as a practical tool for evaluating the successful implementation of CE model. Afterward, the chapter examines the compatibility of CE concept with current standards and guidelines for reclaimed domestic wastewater to identify the potential transition of the current linear water and wastewater sector toward CE. Finally, the chapter presents a case study on water sector in Jordan. The case study implements mass balance, which is one of CE essential tools, to identify the gaps in the current water budget and to underline the rethink-based search for alternative opportunities to fill the gaps. One of the identified alternatives based on the rethink search is reclaim and reuse of domestic wastewater, with focus on reclaimed domestic wastewater valorization as irrigation water.