Personally, I'd be annoyed that the government was taking that choice away from me. Even if they believed the tap water was good enough, I'd like to make that decision for myself. Also, where I live I have well water. This means that if something happened to the ground water, I'd need the bottled as an alternative.

My preferred solution to this issue would probably be a widespread and well thought out recycling program. This would allow them to tackle the larger problem, and it would have long term community benefits.