This is true, but his house's tap water had healing properties. It was probably for the good of his family.

Also, you can be a real jerk and steal his families savings, I'm pretty sure. Then he won't let you drink from his water again. I may be making this up, though. I tried to be nice to the citizens of FF VIII. Unlike in VII where I always make Cloud steal that little kid's allowance or whatever that's hidden in the drawer between the drawer. Cloud's a jerk.