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Water reclamation and reuse are an important means to alleviate the shortage of water resources. This paper proposes several different decision‐making models to investigate what different participants in industrial water recycling, including users, suppliers, and local governments, should do in different situations. In the models, different decision logics of the participants about water reclamation are presented. Finally, the models are used in a case study and some meaningful results are obtained. The study explains the gap between the relatively low utilization and the strong demand for water recycling. Research Impact Statement: There are presented the decision‐making models of industrial water recycling. Cooperation between reclaimed water user and expertized supplier can create surplus value. [ABSTRACT FROM AUTHOR]