Discolored water occurs when sediment in the water mains is stirred up by high water flow. This can typically occur when hydrants are being flushed; during a water main break; or during Fire Department activity. Hydrant flushing is normally scheduled in the spring as noted above.
The water is disinfected but you may want to wait for it to clear up completely before consuming it. Though the water is safe it may stain clothes if washed in it. Try to avoid using the hot water when the cold water is discolored because you may draw sediment into the hot water system and this sediment may end up settling in the bottom of your the water tank. Also, minimize the flushing of toilets in order to reduce the risk of potential clogging of small tubes and devices within the toilet.
Run the cold water for several minutes just to see if it becomes clear. Use a sink in the basement, near where the water line enters the house to check the water. Keep checking it approximately every hour until it clears.