In Saipan the AC is always on. In my place the condensate (distilled water) was sent down a pipe, going around the outside of the home & into a cistern in the laundry room, which was covered with something like (maybe it was) cheesecloth (to keep insects out, so they can't lay there larvae forming eggs there. In the cistern it went through a charcoal filter and a UV light microbial killer thing.Come on, all of that has been worked out.
We got a test kit to test the water for everything the city water systems test for. Compared to both the city water there and what was available in the 5 gal bottles that are used in those water coolers, our water from the A/C system was much better, including the PH. And, no chlorine. Enough water for 4 people with a surplus (for the neighbors), every day. Andthe city water their had salt water incursion. You did not want to swallow it when you were brushing your teeth. It also made washing your hair turn out oddly. Our solution worked great, no weird things happening because the water wasn't within specs.