There are probably some areas where regulations on water are too strict.
Last spring I took a tour of the water treatment plant that serves my parents' house. The guy giving the tour kept complaining about regulations that do more harm than good. First he complained about the required dosages of Ozone. They use the least amount allowed, but because their source of water is cleaner than most there is not enough bacteria to use up this ozone and there is always more than the maximum allowed dissolved ozone left after that stage of treatment, requiring the addition of more chemicals to get rid of it. There is no lead in their water source, but because many houses in the area still have old pipes the feds require that they treat for it anyway. They are required to add a caustic solution to make the water hard enough to line the inside of the pipes, and another chemical to make the buildup strong enough not to break up. They have spent more on these chemicals than it would cost to replace all the old pipes in the county. Regulations make water treatment a lot more expensive than it should be, prevent them from raising prices enough, and require they spend a lot of money trying to discourage people from wasting water thus leaving their revenue too low to support themselves. Less than a forth of the plant was open, and they were not allowed to turn the lights on in most of the sections that were because of the electric bills.
I suspect one reason why the water does not really need so much treatment is because they pump their water from a portion of Lake Lanier just downstream from where the wastewater treatement plant the next county over dumps their treated water. This wastewater treatment plant (which we also toured) is one of the most advanced in the nation, and its output exceeds the safe drinking water standards of the Federal Government and of most Northern states, although it does not quite meet the standards of the State of Georgia. A lot of their water is sold for irrigation of farms and golf courses, but laws require the bulk of it be returned to the streams. It is cleaned enough before that that they must add more organic carbon first, which is the main thing the drinking water plants then have to remove.