Tap water can be okay as long as you are careful with neutralizing and treating it. It's the only option for many people. It's not ideal though, and I wouldn't spend a lot of money on expensive or delicate livestock if you don't have really top quality water.
One thing I've noticed from reading is that once you switch from tap water to high quality filtered water, you can't go back without causing serious problems. People seem to run tanks off treated tap water and do okay (not great, certainly not with fighting algae), but I've read many stories about folks that use RO/DI water and then had the filter fail, and thought they could use some treated tap water in the meantime... and things did not go well.