I've used tap water, but I'm changing that now. My tap water is hard. It makes wonderful dark beers, and APAs and IPAs, but NOT good Belgian pale ales, or blonde ales, etc. I'm going to try using 1/2 RO water and 1/2 tap water in a light colored beer to see how it is.
I know that I can get a water report from Ward's Labs, and I will. I just haven't had the interest yet, but I know that it will greatly improve my beers. I won't even try a pilsner until I get a water report.
If your tap water is good tasting, it's worth trying at least one batch to see how it goes for you, unless you want to get a water report first. Some cities have them available for free, if you have city water.