Dann, yes you're right, we are in the middle of a desert and have little natural rainfall.
But you're wrong in saying that the water we use is recycled, not that recycled water is bad of course,in the UK (and most european countries)sewage is treated and pottable water of a high standard is produced.
The water here is produced from desalination, they take sea water and remove ALL impurities, add a small amount of chlorine to keep the water sterile as it travels to your home, and thats it! The only contaminants the water may contain are those that are picked up on it's journey from the plant to your tap, there are easy to filter out using a bog standard water filter.
The standards maintained at the plant are higher than the standards bottled water is regulated to. At the start of 2008 several brands of bottled water were pulled off the shelves due to spot checks revealing high levels of pollutants. whoops.