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He's lucky the Feds didn't get involved. What he did(depending on volume) could be considered as impacting a water shed, which falls under EPA purview. If you think you can just change the watershed, ask Florida what they think of Georgia keeping water in Lake Lanier.
http://www.waterwebster.org/FloridaAlabamaGeorgia.htm
http://www.southernenvironment.org/cases/tri_state_water_wars_al_ga_fl/
Thats always been a war.