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Large-scale centralised wastewater treatment system has often prevailed in industrial countries, and has been regarded as a successful approach during the last century. However, transfer of this highly water-consuming system and so-called 'end-of-pipe' technology to developing countries, especially in fast-growing cities with scarce water resources, has been extremely limited. Decentralized water treatment is not a new technology and has been successfully implemented in many rural areas worldwide. However, there are few applications in urban areas. This study at Tianxiu Garden in Beijing, China, investigated the potential and feasibility of water management based on a decentralized approach, but modified for application of greywater recycling and rainwater harvesting in a densely populated semi-urban area. A high degree of drinking water substitution (more than 25%) could not be attained by rainwater harvesting. Recycling of treated greywater for toilet flushing was shown to be an efficient method for minimisation of drinking water consumption, and a more suitable technique than rainwater harvesting for saving water in Beijing, China. [ABSTRACT FROM AUTHOR]