In India, many habitations experience severe water scarcity particularly during summer season. Due to the decline in the availability of freshwater sources, it is important to explore affordable, implementable and safe solutions to alleviate water problems. The reuse of greywater is the best alternative and water management practice to preserve water resource and face water scarcity in rural and urban areas. This laboratory scale study presents the finest design of greywater treatment system, which is a combination of natural and physical treatment consist of feed cum collection tank and filtration followed by storage and disinfection. The greywater reuse system is developed for the treatment of various sources of greywater. The economical performance of the system were investigated separately for the treatment of bathrooms, laundries and mixed greywater collected from different locations in urban and peri-urban areas of Nagpur, Maharashtra, India.