Domestic water recycling for several purposes is regarded as an attractive option for the countries where a water scarcity is prevailing. Two groups of wastewater streams are usually recognized as black and grey water at household level. This study analyses the reliability of an on-site MBR system for segregated household wastewater treatment and reuse. To achieve this goal simulation model was developed based on the IWA Activated Sludge Model 1 (ASM1). The MBR model was adapted to describe biological and physical mechanisms for the MBR system. The GPS-X (version 5.0) simulation program was used in this study to simulate the proposed MBR plant model. The experimental data which used on the model calibration and verification were taken from experimental work done at Tubitak, Marmara Research Center, Turkey. Model results were found to agree well with experimental data from two MBRs pilot plants. The grey and black water originated from lodging houses were used as influent wastewater for the two MBRs pilot plants. The two pilot plants were operated for a period of 50 days with hydraulic retention time (HRT) of 18 and 36h respectively for grey and black water. The average removal efficiencies were, 95% COD, 92% TN, and 99% TSS for grey water and 96% COD, 89% TN, and 99% TSS for black water. The results showed that the effluent quality of grey and black water treated by the MBR complied with the international reuse criteria for different uses. The MBR plant model is powerful tool for optimizing the treatment process and improving the plant operations. Also, the model can be saving significant cost by predicting the outcome of operational changes, as well as, by performing an energy cost analysis.