If this is true, then the USA is guilty of using subtle biological terrorism. Damaging civilian water supplies and hindering their repair via sanctions is not a decent thing to do, or even effective. Children and old people will die, and their families will hate the USA - surely that will only cause more trouble?
Link: <a href="http://www.progressive.org/0801issue/nagy0901.html">U.S. Destruction of Iraqi Water Supply</a>