I am building a new home and the builder called today to tell me that although there is no water service to the home water is coming out of the faucets and they do not know why. What could possibly explain this? Should I take my money and run?

The Introductions forum is for introducing yourself to the board, not asking questions. I've requested your post be moved to the plumbing forum.

I would think that some way you house has become contaminated with some under ground water and I would not accept the house until all of the water lines have been flushed and tested several by the local health department