The waste stream from the toilet is initially stored in a black water collection tank. The tank provides residence time for the wastewater to equalize. The tank inventory is then pumped to the treatment section of the system where it is first treated to remove suspended solids and then it undergoes anoxic and aerobic biological treatment to remove organic and nitrogen respectively. A special aerobic media is placed in the aerobic reactor and proprietary bacteria, specifically developed for treating wastewater is attached on the media as a biofilm. This biofilm is able to effectively biodegrade the organic pollutants and reduce its concentration. The treated stream is then passed through the membrane biological reactor (MBR). The MBR membranes serve as microbial barriers that can capture most of the biomass for recirculation inside the bioreactor. The MBR has very good solids/liquid separation effects and produces water that can either be reused for toilet flushing or discharged into downstream sewer directly or be reused as irrigation water. The water is dozed with ozone to further treat it and ensure it is pathogen free.