In several countries, due to the increasing cost and shortage of water, textile finishing industries are looking for non conventional water resources. The use of reclaimed wastewater appears a technically feasible solution and is gaining a growing consensus. A European Union research project (TOWEF0, Towards effluent zero) with the aim of elaborating a multicriteria integrated and coherent methodology to support the implementation of sustainable water reuse in textile finishing processes has been recently concluded. In order to achieve an optimal compromise between minimization of environmental impacts of the production processes and maximum recovery of resources, Life Cycle Assessment (LCA) methodology has been applied to selected textile products manufactured within Belgian and Italian textile finishing companies. The study identified the key environmental issues within the finishing processes of a variety of natural (cotton, silk) and man-made (polyester, acetate, viscose) fibers and fabrics and analyzed alternative water reuse scenarios. Significant margins exist for impressive reductions in water consumption with almost no additional environmental impact adopting in situ membrane filtration technology. In this paper the methodological approach and the results of the LCA analyses applied to a flax-polyester product are presented and discussed.