Water quality is not an absolute standard — it is defined relative to the water's intended use, so "acceptable quality" is set by the most demanding use the water must support.
Intended use — potable supply, industrial process water, irrigation, recreation, or aquatic-life support each has different tolerances (e.g. boiler feedwater needs near-zero hardness; irrigation tolerates moderate salinity).
Regulatory/guideline limits — drinking-water guidelines (Health Canada GCDWQ), receiving-water objectives (CCME Water Quality Guidelines) or a discharge permit set the numeric criteria for that use.
Public health and ecological protection — the underlying purpose of any standard is to protect human health and the receiving ecosystem, which is why criteria differ by parameter (pathogens, toxics, nutrients, DO).
Economic/technical feasibility of treatment — achievable quality is also bounded by what available treatment technology can reliably and affordably deliver.