Tap water in Panama City is safe to drink, as is the water in most other parts of the country. However, you’re 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.