The Gippsland Water Factory (GWF) is being implemented to reclaim domestic and industrial (pulp and paper) wastewater to provide a reliable and sustainable industrial water supply, replacing the high quality raw water currently provided by Gippsland Water. A grassroots facility, the GWF will process domestic wastewater by preliminary treatment, primary sedimentation, membrane bioreactor (MBR) nutrient removal activated sludge, and reverse osmosis (RO). Domestic primary and waste activated sludge and industrial wastewater is treated in anaerobic reactors (ARs) (lagoons) prior to biological treatment via MBR. Significant H2S is produced in the ARs and is oxidized to elemental sulfur in the aerobic MBR by controlled oxidation. In Stage 2 of the GWF the industrial wastewater will be reclaimed using nanofiltration and RO. Extensive pilot testing supported design of the ARs and industrial MBR. Development of the GWF was based on multi-criteria analysis to create an innovative and sustainable solution. Innovative features in addition to those already mentioned include biological sulfur removal from the AR biogas and odor control which includes treatment of off-gases in the biological reactor followed by two-stage biological treatment.