You've hit the nail on the head fluffy, my class at school were on a trip to Derbyshire for a week and one day we went on a trip to the high part of the county, we followed a stream to it's peak, we weren't allowed to drink the water from lower down so when we got to where the water was emanating from mugs were filled and passed down, yes it was coming from peat but this wasn't smelly but very cold and sweet.
So the water used in beer or spirits does have an affect on the finished product. The water from the high parts of Tasmania could be just right for the distillation process.
