Nestlé cannot claim bottled water is 'essential public service', court rules

Michigan's second-highest court rules in favor of township in case that could damage company's effort to privatize water

Michigan's second-highest court has dealt a legal blow to Nestli(C)'s Ice Mountain water brand, ruling that the company's commercial water-bottling operation is "not an essential public service" or a public water supply.

The court of appeals ruling is a victory for Osceola township, a small mid-Michigan town that blocked Nestli(C) from building a pumping station that doesn't comply with its zoning laws. But the case could also throw a wrench in Nestli(C)'s attempts to privatize water around the country.