What’s in Panama City’s water? Understanding local water quality

When you turn on the tap in Panama City, Florida, chances are you’re not thinking about where it came from or the treatment it went through to get to your faucet. But understanding your local water quality—what’s in it, how it’s treated and what that means for you—is one of the most important steps you can take toward cleaner, safer water throughout your whole home.

Is the water in Panama City safe to drink?

Per the city’s 2025 Annual Drinking Water Quality Report, there are some naturally occurring and treatment-related substances detected in local water—but that doesn’t mean it’s unsafe. The city’s water met all U.S. EPA and Florida Department of Environmental Protection (FDEP) standards in 2025, with no violations reported.
Most municipal water contains trace amounts of minerals and manmade compounds. What determines its safety is the level of these substances compared to health-based limits.

Still, many homeowners choose to add an extra layer of protection at home even when their water meets federal standards. That’s because EPA safety limits are based on what was considered safe when those rules were created, as well as what’s currently considered feasible for utilities to treat.

At the same time, emerging concerns like PFAS (“forever chemicals”), microplastics and pharmaceuticals are not yet fully regulated and are often not removed through conventional municipal treatment. In addition, even treated water can pick up contaminants like lead, iron or copper as it travels through aging pipes in the local distribution system or your home’s plumbing. A home water filtration system gives families more control over what they’re drinking—beyond the minimum required by regulations.

As noted, according to the 2025 report, Panama City’s water had no violations of U.S. EPA limits for regulated contaminants. However, several substances were detected at low levels, including:

• Total Trihalomethanes (TTHMs): TTHMs are byproducts that form when chlorine used for disinfection reacts with organic matter in the water. In 2025, TTHMs in Panama City’s water were detected at levels up to 66.7 ppb, below the EPA limit of 80 ppb. Long-term exposure to levels above the limit may increase risk of liver and kidney issues, nervous system effects and certain cancers.
• Haloacetic Acids (HAA5): Another disinfection byproduct, HAA5s were detected up to 40.8 ppb, also below the EPA’s maximum limit of 60 ppb. Long-term exposure above the limit may raise cancer risk.
• Lead and Copper: The 90th percentile results were 1 ppb for lead and 0.29 ppm for copper, both well below EPA action levels (15 ppb and 1.3 ppm, respectively). No homes in the sample exceeded these limits. While levels are low, lead can still be a concern in older plumbing—especially in homes built before 1986—and is a particular concern for children and pregnant women.
• Radium 226/228: This was last tested in 2017 and 2020, with a detected level of 1.54 pCi/L, below the EPA limit of 5 pCi/L. Radium enters water naturally through erosion of rock and soil, and long-term exposure above the limit may elevate cancer risk.

How is Panama City’s water treated?

Local water originates from the Deer Point Reservoir, Bay County’s main surface water source. It is treated by Bay County Utility Services before being distributed through the City of Panama City’s system. This facility uses a conventional multi-step treatment process that includes:

• Coagulation and flocculation: A coagulant (a chemical that helps particles clump together) and polymer is added to help tiny particles clump together into larger clumps called floc for easier removal.
• Sedimentation: The water sits in a basin, where the heavy floc particles settle to the bottom. This step helps reduce the amount of solid material in the water.
• Filtration: Water passes through layers of sand and gravel to remove smaller particles.
  Disinfection: Sodium hypochlorite (a chlorine-based disinfectant) is added to kill bacteria, viruses, and other microorganisms.
• Fluoridation: Fluoride is added in the form of hydrofluorosilicic acid to help prevent tooth decay, a standard public health practice in many communities.
• Corrosion control: Zinc orthophosphate is added to form a protective coating inside pipes, reducing lead and copper leaching.
• pH adjustment: Lime is used to raise the pH of the treated water, making it less acidic and more stable for distribution. This also enhances corrosion control.

This layered process is designed to meet or exceed all EPA and FDEP drinking water standards.

Forever chemicals in Panama City

As of the 2025 Water Quality Report, PFAS were not analyzed in Panama City’s water because they are not yet included in Florida’s required testing schedule. However, in 2024, the U.S. EPA finalized national PFAS drinking water standards, and utilities across the country—including Bay County—are preparing to begin compliance monitoring in the next few years.

Research estimates that up to 45% of U.S. tap water may contain some level of PFAS. These substances persist in the environment and the human body, and long-term exposure may affect hormone balance, liver function, immune response, and fertility. Culligan’s most advanced reverse osmosis systems and whole home PFAS filtration systems are certified to reduce PFAS by more than 99%, offering peace of mind where testing data is limited.

Well water in Panama City

While most of Bay County relies on municipal water, some rural or unincorporated areas use private wells. The Florida DEP’s Source Water Assessment identifies the Deer Point Reservoir watershed as “high risk” due to the number of potential contamination sources nearby (not because of any confirmed water quality problems).

Because the water quality of private wells is not regulated or protected federally, routine testing—ideally at least once per year—is strongly recommended, especially near agricultural, industrial, or coastal areas.
In Bay County and surrounding areas, potential well water contaminants may include:*

• Microorganisms: Bacteria, viruses and parasites that can cause illness.
• Nitrates: From fertilizer runoff or septic leakage; a particular concern for infants and pregnant women.
• Iron and manganese: Naturally occurring minerals that can stain fixtures and affect taste.
• Heavy metals such as arsenic: Rarely detected locally, but possible in groundwater in parts of Florida; long-term exposure may increase cancer risk.

Does Panama City have hard water?

Regardless of city or well water, many homes in Panama City experience hard water, which contains high levels of calcium and magnesium. Panama City’s water can range from moderately to very hard, with municipal water samples averaging about 6 grains per gallon.

While hardness doesn’t affect safety, it can cause hard-to-clean mineral buildup on faucets and fixtures, leave spots on dishes and glassware, dry out skin and hair, and reduce the efficiency and lifespan of appliances like water heaters and dishwashers.

Culligan of Panama City offers a range of best-in-class solutions, including our Aquasential® Smart High Efficiency Water Softener, which removes hardness minerals while optimizing salt and water usage through patented technology. It’s a simple way to protect your home and improve your water experience no matter your source.

Taking control of your water

Even clear water can contain substances you can’t see, taste, or smell—from natural minerals to treatment byproducts or emerging contaminants like PFAS. Every home’s water is different, and the best way to understand yours is through testing.

Start by scheduling a free in-home water test with your local Culligan specialists in the Panama City area to see what’s in your water and find solutions tailored to your home.

*Contaminants may not be present in your water.