Suppose that your use of the water service was creating public lashback against the water utility for "supporting" your business. A loud minority is pestering the water board members and complaining that what you're doing ought to be illegal even if it isn't strictly yet. Some are pressuring other big water users to reexamine their contracts with the utility, and someone even managed to talk a pump supplier into severing their relationship with the utility. A different minority is yelling stuff about "rights" and making trouble at board meetings.
The easiest possible thing to do in this situation is to find some vaguely plausible reason to cut your access to the public utility, and tell you that you have to truck your water in yourself from now on. Note that this kind of stuff actually happens to farmers, refineries, and other businesses.
As far as what's "right"... Damn if I know. None of this is happening in a vacuum, and these decisions end up being made by people who are accountable to and influenced by their family, friends, and community for the choices that they make. Clear laws can dilute that responsibility, but only to a point.