The legislation tightens the maximum limits for certain pollutants such as lead (to be reduced by half), harmful bacteria, and introduces new caps for certain endocrine disruptors.
It also puts levels of microplastics, an emerging concern, under monitoring.
Water access Member states should also take measures to provide universal access to clean water in the EU and improve water access in cities and public places, by setting up free fountains where technically feasible and proportionate.
They should also encourage tap water to be provided in restaurants, canteens and catering services for free or for a low service fee.
They should identify people without access, or with limited access to water, including vulnerable and marginalised groups, and assess ways to improve their access.
"The way we use water will define the future of humanity.
Next steps The report was adopted with 300 votes to 98 and 274 abstentions.
Parliament will enter into negotiations with Council once EU ministers have set their own position on the file.
According to the European Commission (link), lower consumption of bottled water could help EU households save more than €600 million per year.
If confidence in tap water improves, citizens can also contribute to reducing plastic waste from bottled water, including marine litter.