When we set up the cottage, we ran a line into the lake out to a 12 - 15 foot depth. We set the intake 2 - 3 feet off the bottom, away from boat traffic. Water goes through a coarse filter (replaced monthly), a fine filter (replaced couple times a season) and a UV sterilizer before going into the tank. Lake water is very high quality --most of the time. The UV sterilizer ensure no bugs get through regardless. That said, just like at home, we drink distilled water and use lake water for everything else.
One thing for which lake water is unrivaled is in the brewing of beer. My Winnipesaukee Whoopie Juice is the stuff of legend, as is Loon Lager (less than .05% loon droppings, by weight). The brewing process guarantees the elimination of all flora and fauna and after a few, you don't even think about water quality.
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