Why Discharge Sewerage into the ocean

Alan Guthrie made this Government Information (Public Access) request to Water NSW

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Dear Water NSW,
Why do we discharge sewerage into the ocean when we can treat it and make it into drinkable water [as in Japan] to be pumped into rivers in the country.
In 1970 a proposal to do this was submitted to Sydney water and ignored, the sewerage was to be heated and the methane gas from the sewerage used to heat/dry the effulent suitable for fertilizer and the water suitable for rivers.
A system like this would ensure that all rivers had a constant flow.Also why was the 200% over capacity of water in the Townsville Qld Dam discharged to the ocean when it could have been pumped inland to rivers

Yours faithfully,
Alan Guthrie