The Atlantis Water Resource Management Scheme uses artificial recharge of urban stormwater and treated wastewater to augment the natural groundwater resource. The key to the success of the scheme is the fractionation of the stormwater into components of distinctly different quality, and the separate treatment of domestic and industrial wastewater for different end-uses. The groundwater exploitation strategy is largely controlled by water quality requirements. Reuse of domestic and industrial wastewater depends on quality parameters. Tertiary treated domestic effluent is destined for indirect reuse via the aquifer, while treated industrial wastewater is used together with spent regenerant brine and stormwater from the noxious trade area for preventing seawater intrusion. Both residential and industrial stormwater is separated into the base flow and storm flow components and utilised for various purposes. The sustainable operation of the water resource scheme serves as a prototype for the optimal use of water and protection of the environment.