I really don't understand what the issue is with drinking recycled water, so long as it's done properly.
The water you drink from the tap now is likely to have more contaminants in it. The water you get from a pure, pristine, glacial source was probably drunk and pissed out by about 7-8 other organisms before you got to it. And I'm not talking microorganisms either. I'm talking brontosaurus and yak piss.
Laugh it up all you like, but large cities like New York, London and Tokyo will probably have to move to these sorts of setups in a decade or so.