Non-potable water can be used when it’s available, and some toilets have a sink in the top to wash your hands, the water from that is used the next time you flush.
The reason it isn’t used more often is the cost of installing and maintaining all the extra infrastructure. It’s usually cheaper to just increase the capacity of the potable water system to supply both uses. Though places with water scarcity do sometimes have separate infrastructure for reclaimed water.
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