Why is my fish water cloudy?

I have 2 pearl gouramis, i am trying to breed them. My fish water is very cloudy. i dindnt do a fishless cycle because i just used distilled water from a jug. i bought a sponge filter but it isnt getting rid of the cloudyness. i have a 10 gallon and i took out 2 gallons and put in fresh water. It is colorless and smells like fish, but idk if thats just normal. My room also stinks like fish,