Your first step is to call your water company and request the CONSUMER CONFIDENCE REPORT, which is a labratory analysis of your water supply... This will tell you how bad it is in most cases... Mine for example, has 10ppm nitrate, high phosphate and even some copper in it, not very good for a reef tank...
Is RO equired though? Yes and no... Yes, if you wanna do corals, clams or anything else that is overly sensitive to water conditions... No if you just wanna do fish, for the most part... I kept a sw FOWLR tank for about a year before I got my RO unit and I think I could still be doing it with no problems... I decided I wanted a reef and knew my water was not up to that task... I've since gone back to the FOWLR idea, cuz for me it's more about the fish than the corals, but I could do either...
I consider my RO to be a good investment, and I'm sure you will too... For a bargain, look to Reef Central's classifieds or even ebay...