Water shortage and water pollution problems are becoming more and more serious nowadays; it gives rise to the use of reclaimed wastewater as an additional source of water supply and an efficient method of reducing and preventing water pollution. Tianjin is a rapidly growing city in both population and economy while water scarcity is intensifying and water pollution is deteriorating; also reclaimed water reuse in this city has just started. This study aims to find out the potential to realize sustainable development utilizing reclaimed water, and prove the feasibility of local government plan of Tianjin. This study mainly utilizes computer simulation to accomplish the comprehensive evaluation with LINGO programming. The simulation model will forecast the social and economic developing trend of Tianjin with the introduction of developed technology. According to scenarios, this research can give policy-making basis on implementing reclaimed water utilization to realize environment and economic development in Tianjin from 2010 to 2020. Furthermore, it can provide the specific developing plan to establish the sustainable development target, such as construction plan of new sewage plants, financial support, and reclaimed water distribution. Simulation results show that reclaimed water can be effective in saving water resource, reducing water pollutant and improving economic development in the catchment area. © (2012) Trans Tech Publications.