Better idea: bypass all the complicated water credit issues and send that toilet water straight to the new hotels.
So it must have been a shock to P.G. City Manager Ben Harvey to receive a letter from the state water board on May 16, stating that the board was holding back on the payment because the city’s plan might be a breach of contract.
The issue appears to be a discrepancy of interpretations stemming from the water board’s 2009 order to the Monterey Peninsula to stop using water from the Carmel River. One interpretation is that due to the order, P.G. cannot keep any new water credits for itself – they all have to go back to the river.