The use of reclaimed or treated water from urban wastewater treatment plants for irrigation has been proposed as an alternative water source to address water scarcity issues in Europe. In this paper using agro-economic modelling, we analyse if treated water available for agriculture has the potential to reduce freshwater abstraction and, consequently, water stress. Implementing exogenous treated water quantities as an additional water supply at NUTS 2 level in the CAPRI model, we found that treated water reuse is a possible alternative supply source to address water shortages with a very negligible effect on farmers' income and food production in the EU.