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I'm in the northeast and most (if not all? I don't feel like checking every single state along the northeast coast) of them have laws saying that tap water must be free if it's offered. The only gotcha there is that restaurants don't technically have to offer tap water, but that exclusion is probably only there because of water contamination issues. That being said, I've also never seen a restaurant not offer tap water even in places where I definitely wouldn't want to drink it. It's like this in all of the tristate area. The bigger cities like NYC additionally usually have stricter laws closer to what California has.
I was just trying to be gracious. You are citing a misnomer. The water is free because of competition, not because of any law that forces the restaurant owners to give the tap water away for free.