It's in the Water (1997)

In the small southern town of Azalea Springs, the country club set still rules. Here, being a member of "The League" is a must, big hair is still favored by the ladies who lunch, and only hair-dressers and interior designers are supposed to be gay. The addition of an AIDS facility in Azalea Springs has The League unsettled. And the announcement that their charity work will include contact with "those people" leaves them stunned. But the real frenzy begins with a drunken comment regarding the local drinking water. Rumor has it that the water is contaminated with something that actually "turns" people gay. Mix in Brother Daniel's "Homo-No-Mo" meetings, the local newspaper, and a group of rabid homophobic picketers, and you've got a recipe for panic. Heads reel. Women weep. Mothers, hide your children! In the midst of it all, we find Alex Stratton, a young woman dealing with a distant husband...