Bogus headline. For those of you who haven't lived on the West Coast or read up on issues with water ("Cadillac Desert" is a very accessible) Consequently there are always 'water rights' associated with parcels. Either you have them or you don't when you buy the land. This guy doesn't have rights to the water going through his property, but he is diverting the water for his own use anyway.

[1] http://www.amazon.com/Cadillac-Desert-American-Disappearing-...