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The current answer (August 2008) is no. Recycling has two main issues. First, there are no systems available to adequately clean the water at a reasonable cost. There is a company that can do controlled laundry systems, such as hotels, but it cannot process powdered soaps, which are still in great use in laundromats. Second, the latest generation of machines from all major manufacturers still do not allow the control of water from an additional input. Recycled water can generally only be used in the initial rinse cycle, with fresh water used for the final rinses. Current equipment does not support this delineation of water input.

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Q: Do water recycling systems work for laundromats?
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