In Israel the shortage of water and concern for the quality of groundwater resources have led to an awareness that a national wastewater reclamation program must be developed. Such a program could cover a major part of the agricultural water demand and could facilitate disposal of effluents without health hazards or environmental problems. A two-stage pilot-scale system comprising secondary sequencing batch reactor (SBR) treatment and tertiary microfiltration was operated for the treatment of Beer-Sheva municipal wastewater. The self-cleaning, continuous microfiltration system comprised a filter module made up of hollow fiber microporous membranes, with a pore size distribution of less than 0.1 μm, encapsulated into a bundle. The unit, which has a nominal filtration area of 4 m2, can treat 4–5 m3 of sewage per day, at a nominal rate of about 500 L/h. SBR treatment of the raw sewage produced an effluent with a biochemical oxygen demand (BOD) of <20 mg/L and total suspended solids (TSS) of <20 mg/L. Further treatment by microfiltration resulted in a BOD <5 mg/L, TSS <1 mg/L and turbidity <0.2 nephelometric turbidity units (NTU). Bacterial counts showed 6-log removal of coliforms and fecal coliforms. These results indicate that the two-stage scheme is capable of producing an effluent that meets or even surpasses the requirements for unrestricted water reuse for agriculture.