http://gristmill.grist.org/story/2008/3/13/103138/633
The problem is that even with waste treatment, aneroebic digestion, the compounds in question, hormones, antibiotics, and so forth, are soluble in water and pass right through the system. Right into the ground water.
Aerobic composting toilets evaporate the water from the waste, concentrating the chemical compounds in the biomass/active bacteria, where they are broken down. The evaporation is caused by air flow through the system and heat generated by the bacteria.
The solution of chemicals in water passes right through most waste treatment systems or home based septic tanks.
Most of the waste from human sewer systems is water. That's a problem, once contaminated with pathogenic bacteria and chemicals from human waste, it is toxic.
Confining the toxic portion of the plumbing and breakdown process to air powered systems for flushing and digesting, would leave regular sewer water easily recyclable in a series of wetland holding ponds. The water would then be suitable for irrigation. Irrigating greenhouses would allow solar and geo heat exchange powered distillation of the water to render it fit for human consumption.
Or it could be filtered using renewable energy.