"Sales of bottled water in this country have exploded in recent years, largely as a result of a public perception of purity driven by advertisements and packaging labels featuring pristine glaciers and crystal-clear mountain springs. But bottled water sold in the United States is not necessarily cleaner or safer than most tap water, according to a four-year scientific study recently made public by NRDC.
NRDC's study included testing of more than 1,000 bottles of 103 brands of bottled water. While most of the tested waters were found to be of high quality, some brands were contaminated: about one-third of the waters tested contained levels of contamination -- including synthetic organic chemicals, bacteria, and arsenic -- in at least one sample that exceeded allowable limits under either state or bottled water industry standards or guidelines.
A key NRDC finding is that bottled water regulations are inadequate to assure consumers of either purity or safety, although both the federal government and the states have bottled water safety programs. At the national level, the Food and Drug Administration is responsible for bottled water safety, but the FDA's rules completely exempt waters that are packaged and sold within the same state, which account for between 60 and 70 percent of all bottled water sold in the United States (roughly one out of five states don't regulate these waters either). The FDA also exempts carbonated water and seltzer, and fewer than half of the states require carbonated waters to meet their own bottled water standards.
Even when bottled waters are covered by the FDA's rules, they are subject to less rigorous testing and purity standards than those which apply to city tap water (see chart below). For example, bottled water is required to be tested less frequently than city tap water for bacteria and chemical contaminants. In addition, bottled water rules allow for some contamination by E. coli or fecal coliform (which indicate possible contamination with fecal matter), contrary to tap water rules, which prohibit any confirmed contamination with these bacteria. Similarly, there are no requirements for bottled water to be disinfected or tested for parasites such as cryptosporidium or giardia, unlike the rules for big city tap water systems that use surface water sources. This leaves open the possibility that some bottled water may present a health threat to people with weakened immune systems, such as the frail elderly, some infants, transplant or cancer patients, or people with HIV/AIDS."
http://www.nrdc.org/water/drinking/nbw.asp
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