There should be no worries if the water is properly treated. I've heard of some municipalities that inject the treated water into the ground, so it gets just a bit more cleaning (mostly psychological) before being drawn on. In our neighboring city of Arcata, a marsh was constructed to serve as the tertiary treatment. It is a thriving wildlife habitat, and attracts wildlife watchers from all over. I've never smelled anything "off", even from the main treatment plant. After passing through several ponds, the water is released into the bay.