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If you have a well you do need to test the water periodically for your safety. Our water also is very high in other substances which you need to filter out to protect your pipes, your dishwasher, your ice maker, etc. I am on a community well. I have a water softener and reverse osmosis as well. I have had wells on other property. Some will tell you it is very difficult maintaining these systems. I did not encounter that but my systems were new so wear and tear and maintenance over the long haul or on an older well may be different.
Public water is probably preferred for the reasons given above. The biggest problem with public water is they can charge you whatever they want essentially. In Ruidoso, they have levied a 32.00 per month charge to pay for a sanitation plant that primarily benefits those people down stream. There was no discussion, no nothing. They were found liable in a court case and ordered to build this plant and we the citizens are going to pay. Now my minimum water bill there is 40.00 or so, hences quite an increase. They claim it may last only one year-doubt it. In El Paso, they have levied a sliding fee on the water bill to pay for improvements. In the house I just sold it would have been 15.00 per month. Some of this is pure mismanagement, some is because these areas are growing faster than the infrastructure and some is because we have to treat water like gold.
Also, as to the aquifer below your well, usually those are pretty well known amounts. My water is from the Tularosa Aquifer which I understand is quite large. I had a driller come out to some property I own near Socorro, NM and he knew pretty closely how much water was underground in that area. The state relies on these measurements to grant new permits (hopefully).
When you buy a house with a well in NM there are some state requirments that the seller must do to be able to sell the property with the well. That is one protection for you. Secondly, you need to find out how many gallons per minute the well is pumping in order to know if the flow is sufficient. Our community well pump is not sufficient so I also have an equalizing pump in my house to get the water to come out the shower and clean the dishes in the washer.
I don't find the well business daunting but I did before I had one. If you buy into a community well, you need to ask a lot more questions as there are other requirements like water monitors that need to be had, etc.
I am sure others will add more here so you should pick up some good info on the topic.
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