Source separation has thus far been addressed mainly within the context of decentralization in new development areas; centralized approaches for resource-oriented sanitation remained, however, largely disregarded. By means of inhabitant-specific load and volume flow balances, based on typical reference values for municipal wastewater in Germany, a stepwise transition towards on-site greywater recycling was investigated for a model wastewater treatment plant (WWTP). Up to 17% transition (separation of greywater from 17% of the total inhabitants), greywater separation was proven to benefit plant operation by reducing energy consumption for aeration. From 17% transition onwards, however, unfavorable carbon to nitrogen ratios (C/N) were reported, as less biodegradable carbon reaches denitrification, thus shifting C/N ratios negatively. Therefore, nitrogen recovery/removal from N-rich sludge sidestreams would be required. At 35% transition, a 50% N recovery from sludge liquor was proven to be sufficient in order to ensure full denitrification; combined with greywater separation, nutrient recovery yielded 14% reduction in power demand for aeration (on the actual state). Additionally, extensive mainstream process changeovers could be avoided by separating N-rich urine alongside greywater from the main wastewater stream. Urine separation was proven to maintain denitrification stability as well as reduce power demand for aeration. The calculations show that, under consideration of specific boundary conditions, existing WWTP can be successfully integrated in transition concepts for resource-oriented sanitation.