Buddy of mine bought 5 brand new five gallon water cooler jugs. He filled each up with city water and capped them. One week later they were filled with a black scummy algae. This is why I don't drink my city water....
I would fully expect that all U.S. city water systems chlorinate the water to sanitize it (typically to about the same concentration as a well-maintained swimming pool, about 2-4 PPM).
The most likely cause is that the jugs, though new, weren't sterile. It is also possible - but unlikely since city water tends to sanitize plumping on-going - that your friend's plumbing is severely contaminated. It can happen.
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