I was talking to the store crumudgeon about this thread, and he had this little story for me.
Back in 1974 there was a lab in the area called LeClaire color Labs which did all the work for LeClaire Studios. LeClaire was "the" premium color lab, they did just about everything and even worked with kodak to come up with the dye transfer process. Anyways he was in there talking to one of the techs and out of curiousity asked him "Do you guys use distilled water for your chemistry", the guy replies "god no, never, we use city water", "huh? Why is that?" , "because city water is always the same, always consistant, with distilled water its never the same from batch to batch the chemicals in it may change, may not have the minerals anymore but the chemistry is never the same mix in distilled water, least with city water its always the same and I know exactly how the orders will come out from day to day, week to week, year to year.".
So in a manner of speaking just using tap is far more consistent than using distilled water for chemistry. As far as rinsing and drying, guess you can go either way, using distilled or deionized for rinsing/washing/drying, I just typically use tap with a wetting agent, but I am also using city water from the tap and I haven't had a problem in quite some time.