I live on the outskirts of town and have horrible water. It tastes like chlorine, and when we come back from vacation it has a brownish tint during the first minute or so of running.
Maybe this isn't the wisest choice, but tap water is all I have ever used in my tank. Yep, this bleachy, rusty water. You know what? I haven't had one single fish die due to water conditions. They've always been extremely healthy and long-lived (except for a couple major cases of ick due to infected fish from the LFS), and I've raised a juvenile Emperor Angel to adulthood which can be difficult under the best conditions. It took about three years but he finally made it.
What I do when adding water is let it run for a minute or two, add a few pumps of Stress Coat conditioner, and dump it in. Any toxic metals that aren't taken care of by the Stress Coat dissipate shortly, so from my experience I don't see where tap water is a problem.