That is true and that is why it is known that in the regions where the natural water has a high content in fluoride it affects negatively the bones of the humans who live there.
The reasons why adding fluoride to drinking water is extremely stupid are that there exists no evidence whatsoever that the ingested fluoride can have any beneficial effect on teeth, there exists no known mechanism through which ingested fluoride can have any beneficial effect (the enamel of the teeth does not have blood vessels), but there is ample evidence that too much ingested fluoride is harmful.
All the evidence about beneficial effects of fluoride is about the external contact between teeth and fluoride, when the fluoride ions substitute the hydroxide ions in enamel. This is a simple chemical reaction, it is not a biological reaction mediated by an enzyme.
This beneficial effect is achieved best by the use of toothpaste or mouth washes with fluoride, which can provide much more fluoride than it would be safe to ingest. It is impossible to optimize the concentration of fluoride in drinking water for a maximum effect on teeth while not being harmful after ingestion, because the amount of water that is drunk daily is variable and unpredictable.
Moreover, the fluoridated drinking water would have a much greater beneficial effect if one would keep the water in the mouth for some time before swallowing it, which nobody does, so most of the fluoride in the drinking water has no opportunity to provide any beneficial effect.