Just closed on a great deal, small old run down house on 2 acres but the water source is from a year round spring that needs to be made potable..

I see on the Home Depot site they have a Well Water Filtration System for around $1200, not knowing much about spring and well water, would this be all I need to make it potable?

How about any Liabilities from this after I sell?

Any input would be appreciated...

---Mike

Congrats on closing on your deal. I would have a licensed plumber install a new house system. That way you know it is done right and it releases you of liability of something going wrong down the road.
It's not a big deal to do a lot of smaller items yourself but sometimes it's better to let the pros tackle the bigger stuff.

Mike NA

Several years ago I looked in to buying a property and FHA would not loan on a property fed by a spring so it may limit your end buyers options as far as getting a loan therefore limiting your buyer pool

Drill a well and be done with it 

Probably not.  You need to have a sufficient protective structure to keep it animal  free and there are other elements to keeping water secure on an ongoing basis.  I lived in one house with a spring box (it was in the basement) but when I  think about it now it probably wasn't as it should have been.  We had a filtration and light treatment system. I forget exactly what it was called. The actual spring box though had a salamander in it, probably wouldn't be okay today but oh well...it didn't kill him.   Wells can get expensive so if you can make the spring work and if it is a common water supply method for the area then it can be fine. If it is unusual you may have a problem.  Here is some information on treatment systems http://www.pubs.ext.vt.edu/442/442-670/442-670_pdf.pdf but maybe understand how it works first and what your state regulations are.

Your local co-operative extension may have info or the California department of Water may have some information. The National Groundwater association has a site where you can look up contractors by state (I won't say they are the only good contractors because my well guy isn't a member but it is a start) and some states have programs to assist getting drinking systems in line with local regulations. If you search spring on this site you will get an idea of what you need to do http://directives.sc.egov.usda.gov/ to  create a good spring setup.  

A well can be quite an asset, even for just irrigation. Call a few local contractors as others have mentioned. If you need to call the government at any level then don't disclose your well location until and only if you absolutely need to, especially in an urban area. Any thing out of your well is not from their system and since they don't get the revenue they see that as bad. Here they charge you for the water you pump. In other states you are off the radar until you need to re-drill your well. Don't do anything illegal, but certainly don't need to help them shut you down.