I appreciate the question ...

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I appreciate the question you asked. In India still this is a issue to use or not to use this grey water. However, as literature suggest a grey water can be directly used for irrigation if it collected from the healthy persons. Moreover, it has high nutrient content so of course it is good for the irrigation. 

Regarding the question you asked, I think harvesting is better approach by proper treatment to grey water. So, as mentioned the water flowing onto ground so I will suggest to opt for wetland system as being low cost where land availability is not a issue. If land is the issue you can go with the bio filters for the treating grey water. Regarding household treatment, high TDS and colour could be major issue. the colour could be partially treated with filtration as mentioned earlier.

however tertiary treatment with membrane filtration can be possible (costlier affair).