California's Water Resources Control Board, a division of the state’s EPA, last week asked Nestlé to cease unauthorized natural spring water diversions in the San Bernardino Forest, according to news reports.
Reuters reported that move followed a probe revealing multiple violations and depletion of resources amid worsening drought conditions.
The water board said Nestlé gave 20 days to respond to the draft cease-and-desist order and request a hearing or it may issue a final order.
Nestlé sold its North American water brands to private equity firms One Rock Capital Partners and Metropoulos & Co for $4.3 billion in April. It was renamed BlueTriton Brands.