Does city water kill microorganisms?

I am getting ready to apply nematodes to kill the fire ants and started thinking about what water to use. Will tap water kill them because it tends to be chlorinated? I know you have to let tap water sit for a while before putting fish in it.

I bought some distilled water just in case.

Then I started wondering....the directions suggest to wet the area before applying nematodes. Can I do that with the garden hose, or would that possibly harm them? Am I worrying over nothing, or does city water have chemicals in it that possibly kill the microorganisms that I am trying to encourage? If it does, can you let the water sit for awhile, and if so, how long do you let it sit?

I am new to organic gardening, but am trying to have good soil that has a healthy balance of creatures.
Tabitha