California regulators say Nestle may have to stop collecting a large portion of the water it bottles from the San Bernardino National Forest, because it lacks the legal permits for millions of gallons of water. Nestle sells the water under the Arrowhead label.
The State Water Board says that of the 62.6 million gallons of water that Nestle says it extracted from the San Bernardino spring each year on average from 1947 to 2015, the company may only have a right to some 8.5 million gallons. Those numbers come from a nearly two-year investigation.
The state says Nestle should apply for a new permit and ensure that all of its water diversions comply with California regulations, laying out a timeline for the company to respond.
The Water Board began investigating after several complaints were made against Nestle during California's recent drought. Spurred by a 2015 report in the Desert Sun newspaper, the allegations against Nestle ranged from accusation that the giant company lacked full rights to the water it was selling to claims that its actions were harming the natural environment and its inhabitants.
Nestle has said it monitors its spring sites to be sure they don't cause problems, and the Water Board's report was less conclusive on those points. But Nestle wasn't able to satisfy Water Board investigators who wanted to clarify how much water the company could lawfully extract.