Tap water in Panama City is safe to drink, as is the water in most other parts of the country. However, youโre better off buying bottled water or purifying your own water in the provinces of Bocas del Toro and Guna Yala.
If you have the means, vigorous boiling for one minute is the most effective method of water purification. Another option is to disinfect water with iodine pills, or add 2% tincture of iodine to one quart or liter of water (five drops to clear water, 10 drops to cloudy water) and let stand for 30 minutes. If the water is cold, longer periods may be required.
According to the CDC tap water is generally not safe for consumption.
According to the Numbeo water drinkability and accessibility index, tap water has a score of 67.39 / 100 (100 being best).
Numbeo considers this score to be "High"
1 adult could save about 1139$ per year in Panama by drinking tap water instead of buying bottled water.
๐ณ Drinking tap water would also help with reducing your plastic footprint and improve environmental pollution.
Like in most countries, water quality and accessibility differs from location to location, therefore it's the best to check the information available on that place.