My answer to this question is: I think so. From all I read before coming to Granada the tap water is perfectly safe to drink. I’ve never chugged a glass of water straight from the faucet here, but I’ve brushed my teeth with it and gotten some in my mouth from washing my face with it and I’m sure I’ve probably been served it a few times in a restaurant either as water or ice, and nothing weird has ever happened to me unless you count the time I burped up a fistful of flatworms. Haha! I’m kidding, of course.
Our housekeeper at our first house would routinely drink a glass of water from an outdoor water hose tap and she would always show up the next day completely alive, so I’m pretty sure the water is safe to drink. Even so, it is typical to keep bottled water in the house and most restaurants serve it, either in bottles or from dispensers, and I’ve seen many restaurants have purified ice delivered.
We have a water guy who stops by every morning to see if we need water. A 5 gallon jug of it costs C$46 ($1.84 US). Every morning this guy pedals around town on a three-wheeled bicycle loaded down with 5 gallon jugs, seeing who needs water. I find this quite impressive, since I can barely pedal around town on a two-wheeled bicycle loaded down with only me.