A water conservation and recycling system where an integrated automated system comprising a sensor housing with at least one sensor, a diverting valve and controller, the system used to separate water based on quality parameters (for example, temperature, acidity (pH), dissolved oxygen, electrical conductance and/or turbidity). In one example, physical bio-filtration is used to remove debris particles from clean water and ultraviolet light and ionization is used for bacterial eradication of clean water. Separated clean water is stored and recycled for agriculture and toilet purposes resulting in up to 40% reduction in residential and commercial water consumption. Municipal water supply line pressure is used to pressurize storage tanks to provide intermittent irrigation water supply.