A system and method for processing and reusing graywater. At least two vertical flow wetland units are provided, each of which comprises a container filled with at least one granular substrate and at least one species of a hygrophilous plant, and an outlet. At least one of the wetland units is set to an inactive state during a predetermined period of time such that influx of graywater to each of the inactive units is prevented, to regenerate each inactive wetland units. At least one of the wetland units is set to an active state to allow introduced graywater to be purified. Purified graywater is discharged from the outlet of each active unit to a sink. At least a portion of the purified graywater is recirculated to each active wetland units so that a portion of the purified graywater, when desired, is discharged to a domestic site for reuse.