I catch most of my irrigation water in barrels or above ground cheapo pools. Can't afford a better system yet, and no piped in water. Each barrel or pool gets a starter culture of water plants (duckweed, azolla, etc) and mosquito fish. The fish nibble plants and algae, and keep down water-reproducing insects, and fertilizethe water with poops. I can harvest a good few handfuls of water plants each day for my
chickens and ducks. This is probably less relevent in temperate areas than my own subtropic climate.
Water plants on the surface of a pool reduce evaporation loss.
I think algae water is fine for irrigation, but a more complex ecosystem is better - a mini-aquaponics system. A more complex system should also reduce pathogen load. So my advice - add more life to your barrel!
On a diffrent note - three years ago I could buy 55 gallon barrels (plastic, food grade) for $5 each. The last one I bought cost $35 and I've seen them posted to craigslist for $100.
Big Island, Hawaii, 2,000 ft elevation, 200+ inches yearly rainfall.
Ua Mau Ke Ea O Ka Aina I Ka Pono