Green hydrogen development plays an essential role in creating a sustainable and environmentally conscious society while reducing reliance on traditional fossil fuels. Proton Exchange Membrane Water Electrolysers (PEMWEs), are sensitive to water quality, with various impurities impacting their efficiency, the quality of the hydrogen produced, and the device‘s lifespan. High‐purity water is required for PEM electrolyzers; Type II water, which is required for commercial electrolyzers, must have a resistivity greater than 1 MΩ cm, sodium, and chloride concentrations less than 5 μg/L, and total organic carbon (TOC) content less than 50 parts per billion. The majority of electrolyzers operate on freshwater, or total dissolved solids (TDS) <0.5 g/kg, whereas brackish, rainwater, wastewater, and seawater have TDSs of 1–35 g/kg, 0.01–0.15 g/kg, 0.5–2 g/kg, and 35–45 g/kg, respectively. This critical review offers, for the first time, a comprehensive overview of relevant impurities in operating electrolyzers and their impact. The findings of this study indicate that electrolysis‐based H2 processes are promising options that contribute to the H2 production capacity but require improvements to produce larger competitive volumes. In addition, the main challenges and opportunities for generating, storing, transporting, and distributing hydrogen, as well as large‐scale adoption are discussed.