Short answer
Yes. Wudu and ghusl with zamzam water are valid, and the Hanafi school allows them. Out of respect for its blessing, using zamzam for istinja or to wash away najasah is disliked. Most people today keep zamzam for drinking and dua, which is the better use when other water is available.
Wudu and ghusl with zamzam are valid and allowed. Using it for istinja or to remove real najasah is makruh out of respect for it, and some Hanafi scholars went further and called that haram.
The four schools agree on this.
Explanation
The Prophet ﷺ said of zamzam that it is blessed and that it is food that nourishes. It is natural water from a well, so it purifies like any other water: see water for wudu. Reports also describe the Prophet ﷺ drinking from zamzam and using some of it for wudu.
In the Hanafi school:
- Wudu with zamzam: valid and allowed.
- Ghusl with zamzam: valid. Some people pour a little over themselves for blessing after a normal ghusl, which is fine.
- Istinja with zamzam: disliked. Use ordinary water.
- Washing najasah off clothes or the body with it: disliked, for the same reason.
- Ruqyah and healing: drinking it with an intention, or wiping it on the body, is a common practice: see reciting over water.
Since zamzam is usually scarce outside Makkah, the better use is to drink it, make dua, and share it with family. In Makkah, the masjid provides it for drinking, not for washing. For how to drink it and taking it home, see how to drink zamzam and taking zamzam home.
The evidence
Sahih Muslim 2473
Sahih... انها مباركة انها طعام طعم ...
"It is blessed; it is food that nourishes."
Zamzam's blessing is the reason scholars dislike using it for impurity.
Where the ruling is recorded
- al-Durr al-Mukhtar with Radd al-Muhtar, Kitab al-Taharah, chapter on water. Wudu and ghusl with zamzam are allowed; istinja and removing najasah with it are disliked.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.