An optimization framework that considers direct recycling strategies for wastewater reuse amongst multiple processing facilities is utilized in this work. The approach considers industrial city arrangements, by capturing water source and sink locations, available service corridors for water transport, as well as any barriers that exist in between. Shortest source-to-sink routings were determined according to Dijkstra's Algorithm, which is a path search algorithm that produces a shortest path tree for determining the best route. This greatly facilitates finding optimum distances for the planning of cost-effective water piping layouts. Moreover, a systems water integration approach in the form of direct recycling was utilized to make decisions on optimal stream allocation for source-to-sink options within the plot. In order to illustrate the proposed methodology, a case study has been carried out that involves an industrial city layout consisting of five water sources, five water sinks, and a total of three plants. Efficient water allocation strategies that employ shortest source-to-sink routes were obtained, thus allowing cost-effective water network designs to be achieved. Moreover, pressure drops within the pipe segments of the water network were also accounted for.