Here is some more info provided by my friend Robyn Rhudy of
www.fishpondinfo.com
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Cloudy or Green Water:
A frequent question of new aquarists is why their newly setup tank turns cloudy. There are many possibilities to consider.
Either something is growing (bacteria if white, algae if green), something is being added (bad water, too much food, too many fish and their wastes), or something is leaching (gravel, ornaments, driftwood). In any case, it is a good method of attack to change 30-50% of the water every few days until the water is again clean. Adding fresh carbon may also help. Without diagnosing and treating the cause, however, the problem will return. Some reasons that water may be cloudy in a newly setup tank and solutions include the following.
1. The gravel was not properly rinsed. Remove the gravel and rinse well.
2. The gravel or other ornaments contain limestone or other leaching materials. Remove the offending materials.
3. Driftwood was not properly treated and is leaching. See the driftwood section for driftwood treatments.
4. Bacterial blooms are common in new tanks and make the water appear milky. Change 50% of the water every few days until water clears up. Add liquid bacteria to help the good bacteria out- compete these bacteria. Bacterial blooms are often fed by excess fish food and fish wastes but many also be common in certain tap waters high in these bacteria or the foods that they like.
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So from that article, you can get somewhat of a confirmation that the "white algae" isn't techically algae rather, its a bacterial infestation.