I note that pretty much everyone has assumed "distilled spirits" when they read "alcohol" and gone on the "if they can distil spirits, why not just distil the water?" tack.
For quite some time in our own history, people drank beer
because the water was too contaminated to drink
The recipe for the beer they drank involved boiling the mix.
Now, to us 21st-Century types, it's clear that the boiling killed the bacteria and made the resultant beer safe to drink.
However, in Medieval Europe, they didn't know about the bacteria in the water nor that boiling the water killed it - what they knew
was the water would make you sicken, beer would not.
And at that time, they didn't even know of coffee, let alone that new-fangled "tea" stuff. The only beverage that used boiling water in its production, was beer.
Depending on the setting, it could be quite plausible that the characters don't know about bacteria or boiling water to get rid of it. They may just use beer made in the same way as it was here on Earth in the Middle Ages.
It's therefore also plausible that a visitor from somewhere (where presumeably the water is not contaminated) that has a cultural/religious restriction on alcohol, may find (s)he has to drink beer in this area because it's the only safe thing to drink.
Therefore it's possible that issues may ensue depending on the person.