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In the Nile Delta, a complex network of canals collects drainage water from surface-irrigated fields but also from municipal wastewater. The goal of this work was to assess the technical, environmental, and financial feasibility of the upgrade of a drainage canal (DC) into either an in-stream constructed wetland (ICW) or a canalized facultative lagoon (CFL), in order to produce a water reusable in agriculture according to Egyptian law. The model-based design of the proposed technologies was derived from field experimental data for the ICW and laboratory data for the CFL. Both technologies, integrated by a sedimentation pond and a disinfection canal, led to the attainment of the water quality standards imposed by Egyptian Law 92/2013 for the reuse of drainage water. The life cycle assessment indicated that the upgrade of an existing DC to either an ICW or a CFL results in an extremely small environmental burden, ≤0.3% of that of a traditional activated sludge process. The cost-benefit analysis (CBA) was based on the assumptions that 1) farmers currently irrigate a nonfood crop (cotton) with the low-quality drainage water present in the DC, and 2) thanks to the upgrade to a ICW or CFL, farmers will irrigate a food crop characterized by a higher market price (rice). The CBA indicated that the DC upgrade to an ICW represents an attractive investment because it leads to a financial rate of return >10% over a wide range of cotton market prices. Conversely, the upgrade to a CFL is less attractive due to high investment costs. In conclusion, the upgrade of DCs to ICWs appears a promising option for the treatment of drainage canal water in the Nile Delta, thanks to the high pollutant removal performances, low cost, and negligible environmental burden. Integr Environ Assess Manag 2020;16:920-933. © 2020 SETAC., (© 2020 SETAC.)