Same problem and solution. New carpet made water smell funny. Filled a bathtub with water, and the smell started. Doing dishes in the sink, funny smell. I called the water department, and they immediately asked if I had just put in new carpet. Why, yes I had. They said the chemicals in the carpet reacted with the chlorine in the water to make the smell. After a week the smell went away (we opened the windows the help speed up the process).