Water recycling is a potential tool for reducing the dependency on traditional water sources, which would eventually reduce the likelihood of volumetric restrictions and their impacts on the water sector. Therefore, exploration, development, and use of alternative water sources are required for sustainable development. Scientific studies on the efficient and economical use of nontraditional water sources developed using the recycling process have attracted the attention of agriculturists, planners, and engineers for the last two decades. Recycled wastewater types, including greywater, sewage, stormwater, and industrial wastewater, have been discussed in this study. This article reviewed various forms of recycled wastewater, especially wastewater from treated sewage, and their effects on human health and irrigated environment. In addition, the necessity of exploration and usage of alternative sources of water in agriculture over traditional sources has also been reviewed. Legislations and guidelines of three major countries regarding the water recycling process and subsequent use have also been presented. The key finding of this article is that the agriculture and water recycling industry can only be connected sustainably when recycled wastewater complies with agronomical, environmental, and sanitary requirements. Because of the rapid advancements in wastewater recycling technologies, water recycling and recycled water usage have great potential to manage the increasing burden on freshwater resources. Finally, the sustainable use of recycled wastewater is crucial to minimize the negative effects on agriculture, the environment, and human health.