Sulfur water (or sulphur water) is a condition where the running water contains a high amount of hydrogen sulfide gas that escapes into the air when the plumbing line is opened, giving a distinct 'rotten egg' smell. Sulfur water (or sulphur water) is a condition where the running water contains a high amount of hydrogen sulfide gas that escapes into the air when the plumbing line is opened, giving a distinct 'rotten egg' smell. The condition indicates a high level of sulfate-reducing bacteria in the water supply. This may be due to the use of well water, poorly treated city water, or water heater contamination.