Panama’s tap water is safe to drink
Panama’s tap water is safe to drink. It's chlorinated and completely safe to drink. You are free to shower, brush your teeth, and drink as much as you like. However, the water in the more isolated settlements might be suspect. If you're going off the established path, it's probably best to be safe and drink bottled water.
The answer may surprise you: Panama’s tap water is safe to drink in most parts of the nation, particularly in the bigger cities. Even while the water in cities is purified and generally safe, if you have a sensitive stomach, you may want to take extra precautions. Purchasing bottled water or heating your own water may appear inconvenient at first, but it will make your vacation lot more pleasurable in the long term.
Be honest with yourself about your physical limits. You should only consume bottled water or tap water that has been strongly boiled for 3 minutes, and you should avoid drinking beverages produced with tap water and ice in your drinks (which is likely made with tap water). Stick to bottled beverages that you have to open yourself. Check out the CDC's guide to all the different ways you can disinfect your water.