Some water providers and/or cities may offer financial incentives for installing a greywater recycling system. Such incentive programs are uncommon so check with your water utility for information on programs in your area. It is more likely that there are specific regulatory barriers to creating a greywater system in your area.
In many cities and states there are specific regulations against reusing greywater. These regulations are usually in place because of water rights and health department regulations. The water rights issue has to do with consumptive use. Greywater systems put some water to consumptive use instead of sending down a sewer to a wastewater treatment plant and ultimately back into waterways where downstream water rights holders can access it.
In some states the department of public health regulates greywater systems in the same manner as on-site blackwater systems. These regulations would require greywater to be treated in a septic tank just like blackwater and then sent to a conventional leaching field. Treated greywater can only be used for irrigation if the effluent meets standards for biochemical oxygen demand.
It is important that you understand the regulations controlling greywater in your area before embarking on any greywater project.