As like as energy consumption, there is an increasing need for potable water and depletion of water resources are even more challenging than anticipated decrease in fossil fuel resources. Some water resources have unacceptable levels of contaminants and hardness and can be retreated to provide drinking water that is safe and within acceptable contamination levels. In this study, biomass is used to produce biogas and boiling water in a pellet fluidized bed to serve the needs of small communities. By using pellets and boiling water in fluidized bed, the hardness of water and microbiological contaminants can be removed effectively. It is shown that using this simple structure, the drinking water demand of the region can be partially met by using a free and abundant source of biomass in the region. Moreover, it minimizes the health problems due to both water contaminants and biomass residues in the area.