Treating waste water back to drinking standard is less than 1/2 the cost of desalinization.
Actually less than 15-20%.
Waste water already is required to be treated, by federal standards, to all the standards of potable water, except for taste and odor.
This normally requires only one, or two at the most, additional steps in treatment.
The only real hurdle involved is the legislation AND getting people over the stigma of knowing how the water was once used.
Of course, since there is no such thing as "new" water, it's all been used as waste water at one time or another by some form of life.