Thanks guys! Dad said that the iron is probably high here. A filter wont help me as I am taking the water from a downstairs spicket, not the kitchen sink. I use Prime on the tanks now in NY and plan to use it here too. I guess its better to be brown and healthy rather than brown and deadly.
Fred, I havent moved yet! Im just here till June 4.

This is a new house and we are not on city water, I think its a private well of some sort, we're out in the country. I dont think the pipes can be rusting as the house is less than a year old.
I filled up a gallon milk container and let it sit overnight and there was no sediment on the bottom. However, it covers my cat's water dish in a brown layer which easily washes off.