Water in generally considered unsafe to drink in a number of South American countries, for example Ecuador. Even locals regularly buy bottled water. Ice also risks transmitting the contaminants.
While traveling there, I've also heard that it's safe to drink iced drinks if the cubes have holes in them, as this means the ice was made in a machine that purifies water. Is this true? I've found some related discussions on Travel.SE and TripAdvisor but no credible references.