Connecting water to outside hose bibb
That old PVC pipe is highly unlikely to be up to code for carrying a pressurized water distribution line. 

You also do not want to place water service outside like that because it will freeze and burst the pipes when it gets cold in winter (unless you live in an Amazon tropical zone or Hawaii). 

Proper installation is to install it inside near to the heated space of the home. Use of copper or PEX would be the preferred material for the water lines. If you use PVC makes sure that it is a proper type for pressurized water service.