Before taking a stand on drinking Melbourne water that has a component of highly treated recycled sewerage, consider what the water is like that is 'fresh'.
The water starts high in the mountains, some of it snow thaw. The next time you jokingly make some yellow snow, think of where it will end up.
It flows down to the reservoirs. Along the way, creatures have sex in the water, they give birth, their body wastes are carried down steam. Animals plunge their mouths in the water to drink. Insects die in the water as do some larger animals. The larger animals perhaps relieve themselves near the water and their products ends up the water. Further downstream, maybe cattle are in the water at times.
So although diluted, everything that has gone in the river is still there when it arrives at the reservoirs, including perhaps a rotting cow's carcass.
From there it is chemically treated and delivered to you.
Chemical treatments can't be anything like the purification that recyled water goes through.
It is an emotive matter, but if you look at the cold hard logic, you can only conclude that there is nothing wrong with water recycling from sewerage.