In addition to water scarcity, drivers to consider water reuse now include aging or inadequate infrastructure, resiliency, resource recovery and increasing costs for conventional water and sewer. Many communities are responding by incorporating onsite water treatment and reuse systems for both existing and new-build projects. As water reuse initiatives increase, more focus is being directed to the water-energy nexus; which is the relationship between how much water is used to generate and transmit energy, and how much energy it takes to collect, clean, transport and store water. Onsite or distributed systems are located closer to the source and point of use, which facilitates local recovery of both water and thermal energy embedded in the water. Natural Systems Utilities is currently recovering thermal energy from treated wastewater at its onsite treatment and reuse systems. These projects illustrate how distributed systems can facilitate local integration of our water and energy infrastructure, and be competitive against conventional infrastructure on water, cost and carbon savings. The MacDonald Island project, located in Alberta, Canada represents the first combination of direct water reuse with a District Energy Sharing System (DESS) recovering 240 kW of treated effluent heat energy while reducing capital expense by $3M as compared to the conventional wastewater approach. In NYC an existing in-building treatment and reuse system at The Solaire, a LEED Platinum residential tower located in Battery Park, has been retro-fitted to recover reuse water heat energy for domestic hot water heating purposes. The heat recovery system reduces the building heating costs and saves more equivalent thermal energy than used to power the water reuse system electrically. This presentation will explore the performance of these heat recovery applications and how, for the first time, they make small-scale onsite water treatment and reuse systems net energy producers.