It can. Water enters the home as fresh, and probably treated water. If it’s used in the shower or sink, it can be classified as grey water, meaning it’s no longer safe to drink but low risk of having pathogens that are harmful to humans. Black water is toilet water, contains human feces and a very high risk of human pathogens.
In some areas grey water can be legally used to irrigate landscapes. Gray water generally isn’t a good idea for reuse, but it can be treated and used a “recycled” water, which is basically the water that comes out of a sewer treatment plant normally would be released back into a river.
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