Is it safe to sleep near a rainwater recycling tank? Is bacteria can developed and flow into the bedroom when sleeping with the window open?
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Standing stagnant water can harbor legionnaire's disease, be a mosquito breeding ground, etc. And as @mike says, regional hazards vary, check with your local health authority, what works here in Oregon might not work for example, in Florida, etc.
Typically the biggest risks from these type of tanks is an increase in mosquitos. The very young mosquitos that emerge from the water may be small enough to get through some screens or seals.