Short answer: Both chlorine and iodine in specific concentrations are used for water disinfection. 

Iodine has been used to disinfect water for a long time. It is used in concentrations between 2.5 ppm to 7 ppm, but there is some controversy regarding the maximum safe dose of iodine because excess of iodine consumption in humans can lead to various diseases(thyroid disorders being very common). I believe this is the reason we have moved towards more safer options like chlorine for water disinfection.