The Carpinteria Valley Water District is working with the sanitary district and the city to develop a plan to treat waste water before it heads into the sanitary district.
The water would then be injected into underground wells.
Supporters say the treated water in the underground wells would eventually meet acceptable standards for drinking.
The Carpinteria Valley recycled water plan would reduce the need for surface water, such as the dwindling supply in Cachuma Lake.
The Water District covers 17 miles and serves 15,000 people.
The plan was presented on Monday.
