Is it safe to drink tap water while pregnant? Will it harm the baby? Will it effect fetal development in any way? Is bottle water better to drink?

Tap water is fine. In the United States -- every community, every state -- tap water is entirely safe, in both pregnant and non-pregnant persons. Many people prefer bottled water, but the only rational reason is taste: if you like it better and can afford it, use bottled water. But assuming no special contamination issue -- which the health department and media would publicize -- tap water is entirely safe.