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The growing interest in alternative water supplies is impelling societies, government bodies and industries throughout the world to conduct research and discuss the feasibility of reuse of treated wastewater. Treated wastewater has emerged as an affordable source of water supply worldwide. Designing of wastewater reuse systems involves consideration of multiple criteria such as technical, social, economic, environmental, legal as well as multiple stakeholders. The objective of the present study is to develop a multi‐criteria decision‐making (MCDM) approach using Analytical Hierarchical Process (AHP) for the selection of significant criteria and sub‐criteria governing the planning and execution of water reuse systems considering the local conditions and end users. The weightage of the individual parameters is obtained. The results indicate that the weightage of different criteria varies for different stakeholders. The analysis may help in developing a holistic approach for reuse of treated wastewater inducing improved decision‐making at authoritative levels.