Hydraloop wins Best of best award at world's largest electronic show CES2020
dutchwatersector.com
dutchwatersector.com
⇒ This produces “greywater"(https://en.wikipedia.org/wiki/Greywater). That can also be done (and, I expect, more economically) in a centralised location, but using that water would require laying a second water main to all houses.
An argument in favour of local treatment also might be that it makes it harder/impossible for users to use the wrong kind of water (drinking greywater or using “blackwater" where greywater would suffice)