The invention is directed to wastewater treatment and wastewater reuse. A distributed biological treatment system for modification of the sewer biofilm through the mechanism of competitive exclusion by strategic dosing with facultative bacteria is illustrated, in conjunction with a novel membrane biological reactor (MBR)/biological breeding reactor (BBR) package plant, a plurality of which are likewise designed for strategic placement throughout the sewer/collection system infrastructure. The inclusion of the MBR/BBR plants at specific locations within the distribution system provide upstream water reclamation, thereby facilitating more efficient operation of the downstream wastewater treatment plant and providing for water reuse at intermediate points within the distribution network, as well as a means for concentrating the facultative bacteria which has been dosed to various points in the system, which can then be re-inoculated to the system.