Dean Kamen`s Water Machine on the Colbert Report

In the case of the power industry, they use 140 billion gallons annually. Of that, 135 billion gallons goes back to reservoirs and is "reusable".

The rest (5 billion gallons) is what the calculated waste is. I.e. Freshwater no longer easily accessible.

Option 1) Byproducts.
Say something has H2SO4 as a byproduct. That water is no longer drinkable. It is now Sulfuric Acid.
(Sulfuric Acid is actually usually a "product" not "byproduct" but I can't think of a "useless" substance at the minute).

Option 2) Products.
We use the water in making something. It could be something drinkable (any soft drink), or it could be just anything liquid (sulfuric acid).

Option 3) Goes somewhere it`s not easily gotten back. (Either via dumping, pumping or evaporation)
(I.e. The sea. Dumping grounds. Contaminated areas.)