It's funny what people experience. I think the Anaheim water is gross - it smells funny when you turn on a tap, like someone let one go, if you know what I mean. On my first time out there I had started feeling just a little sick, and upon talking to locals in the HM queue, they had asked if I had been drinking water. I said yes, but they they were like "not tap water, right?" They advised me to stop immediately and drink only filtered or bottled.
I don't fins WDW water to be all that great compared to home, but I think it is much better and drinkable than Anaheim water. It's never made me sick or anything.
If water smells when you turn on a tap, it's likely not the water, but the pipes in the drain the water is going down. Probably covered in buildup and the smell comes back up as soon as water starts going down it. I was having that issue at home until I poured some bleach water down all the drains, and now there is no smell anymore.
I live near anaheim, but we have a different water source. I don't think Anaheim tap water tastes or smells bad at all. The water fountains at DL have fine water, although I hate it when it's not refrigerated. Not all the fountains are.