In most places, the water in Panama is safe to drink. The Panama Canal Company had a high standard for hygiene, and as a result the water is clean in Panama City and much of the rest of the country. Bocas del Toro is one of the few places in Panama that does not have reliably safe water. Water also remains questionable on the developing islands. If there is any question about the purity of the water, err on the side of caution and drink bottled water.