This is the million-dollar question, and I’ll answer it straight: Yes, it’s safe. The EPA regulates these taste and odor compounds as “secondary contaminants”—they’re annoying but not harmful. You won’t get sick from a glass of dirt-scented H2O.
That said, if your water also looks discolored (brown, rusty, or cloudy), or if the smell changes suddenly, then stop drinking it and call your water company. A dirt smell alone is usually just a cosmetic issue.
But let’s be real—“safe” and “palatable” are two very different things. I’d rather drink a glass of guilt than a glass of mud-puddle water. So what do you do about it?