It certainly makes much more sense to use recycled water instead of drinking water on landscaping and farmland. The next stage, something already done in southern California, is to purify recycled water and pump it back into the groundwater table, where we can fully reuse it.
So I support the existing programs for recycled water, and the role it has in the Water District budget will allow recycled water to expand. I'd also be interested in even more expansion, but I don't see the Water District's budget expanding anytime soon, so we'd have to figure out where the money would come from to accelerate the process.
Desalination (the process of converting saltwater to freshwater), by contrast, has some significant problems. A huge amount of energy is consumed in the desalination process, making it both expensive and environmentally problematic. The remainder of desalination is a soupy salt brine that creates a big disposal problem, especially for us bordering the shallow San Francisco Bay. Any approach to desalination would have to be done very carefully.
Finally, while I distinguish between water recycling and desalination, the distinction is really a matter of degree. Recycling also consumes energy and also has leftover materials. But being able to think in shades of gray is an important part of policy, which is why water recycling should be more encouraged than desalination. Most important of all though is water conservation, reducing the initial demand, and we can still do a lot more on this issue.