Our house in KY was feed from a spring. It was also on a hillside but the spring was not that much higher than the house there for it was pumped horizonally 500' or more.
We used a cement septic tank as the cistern. The water from the spring ran into the cement tank and over flowed on the other end. The size of the inlet and out let were reduced.
I would think that if you had a segmented tank then you could put a hole with screen in the bottom of the segment fill the inlet side with sand and filter the water this way. If the water is undisturbed I don't know if you need it. Does it get murky with high rain?
The main problem with a spring is keeping animals out of the water. An enclosed tank helps.
The spring in KY had been used for drinking for many years. We had it tested once in a while, same as you do with a well.

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