Yes, in the north of Italy. 1.5 litre bottles of Pejo (you've probably never heard of it, as they don't waste much on advertising) costs 20 cents in my local supermarket.

Italians seem to mostly drink the local water, making it a little less bad for the environment than shipping it all over the world (there are still the plastic bottles, of course). There are exceptions. I once got Pejo at a restaurant in Cattolica at full restaurant prices. They probably figured out that they could get a bigger markup with hardly any of their customers noticing. Since then, I always get suspicious when I see non-local, non-San Pellegrino, water at a restaurant.