DD is/was a tap water 'tide' baby.
We did use bottled water from time to time (when our city tap water was mucked up) and in the beginning or when we travelled. Our pediatrician said since it was city tap water there shouldn't be any problem. No, we did not boil it either.
I honestly got tired of paying for bottled water when we would hardly drink bottled water ourselves.
For the detergent, everyone said we *had* to use dreft or else DD would have a horrible rash.
I was like 'um... have you SEEN the price of dreft?!?'. My mom said what she did for me as a baby was to use a little bit of what she used on hers and my dads laundry and then double rinsed it. So, we did that with DD and never had any problems.