Least cost solutions for a three million gallon a day land application of municipal wastewater system are estimated for three levels of capital cost subsidy: no subsidy, 7 5 percent, and 85 percent. Irrigation of reed canarygrass is superior of alfalfa, corn, forests, and natural vegetation (weeds). The cost of a full year irrigation of reed canarygrass ranges from $493,000 to $565,000 depending upon the assumed value of reed canarygrass. If the local municipality minimizes its costs while receiving subsidies, inefficiencies result. Total costs to society can increase in excess of 65 percent of the minimum cost solution.