This paper investigates the challenges and adoption rates of water recycling systems as a sustainable water management strategy within residential properties in South Africa. Employing a quantitative approach, the research incorporates a comprehensive literature review and household surveys to discern the micro-social, technical, and socio-economic motivations and challenges influencing adoption rates and homeowners' willingness to embrace water recycling systems. Through structural equation modeling (SEM), a causal model is developed, illuminating the intricate nexus between influential constructs, their sub-constructs, and the degree of water recycling system adoption in South African residential contexts. The SEM results reveal significant relationships between property characteristics, motivations, and challenges, and their combined impact on adoption rates. The study identifies a lack of space, unclear savings on water payments, and insufficient information/awareness as primary micro-level obstacles to implementing water recycling systems in residential properties. Furthermore, it demonstrates that enhancing the efficiency of water recycling systems could substantially mitigate the negative impacts of these challenges. The study underscores the pivotal role of public awareness campaigns and homeowner education in augmenting the utilization of recycled water within residential settings. Recommendations emphasize the necessity of equipping homeowners with fundamental environmental and technical knowledge pertaining to water recycling and advocate for government incentives to encourage the adoption of water recycling systems in residential properties. These findings offer valuable insights for crafting data-driven decision-making frameworks aimed at bolstering the capacity for analyzing and implementing novel water reuse strategies, tailored to the specific capabilities and resources of urban authorities and communities.