The use of treated effluent as a sustainable, reliable, and accessible source of water supply is a critical factor influencing water use in industrial sectors like petroleum refineries. The purpose of this study is to document the life cycle and economic assessment of an integrated ultrafiltration, ion exchange, and multioxidant (UF-IXMB-MOX) treatment system in the recycling of refinery effluent. The effluent was used to supply makeup water in cooling towers at the Kermanshah oil refinery, Iran from April to December 2018. For the life cycle analysis, eight environmental indicators, including ozone-depleting potential (ODP), global warming (GW), greenhouse gases (GHG), acidification potential (AP), eutrophication potential (EP), health effects (HE), environmental toxicity potential (ETP) and photochemical oxidation potential (POCP) were considered for four groups influencing the selection of a treatment method, including electricity consumption (EC), raw materials, condensed effluent (concentrate) and construction. Results of the economic analysis show that the initial investment for the launch of this treatment system was estimated at $255,750. Considering the fixed and variable annual costs, the cost of regenerating treated effluent was estimated at $0.24/m3 of effluent, with the cost of chemicals contributing the most to annual costs. This scenario, with consumption of 0.08kWh/m3, had the lowest energy consumption compared to other similar membrane-based methods. The electricity consumption in the formation of GHGs, GW, POCP, and health effects, and the role of condensed effluent produced in creating ETP in aquatic and terrestrial environments, had the highest environmental impact among the eight environmental indicators. Overall, results suggest that focusing on renewable energy and the use of chemicals with minimal economic and environmental impact can increase the efficiency of this process.