California is facing one of its most severe droughts on record, which is hurting farmers and recreation alike. But despite water restrictions, Nestle is bottling spring water from the state and selling it, creating controversy alongside profits.

Nestle owns Arrowhead Mountain Spring Water, which has been bottling water from a spring in Millard Canyon, Calif. for more than a decade. The company’s 383,000-square-foot bottling plant, which also packages purified water under the Nestle Pure Life brand, is located on the Morongo Band of Mission Indians reservation.

In January, Gov. Jerry Brown (D-Calif.) declared a drought state of emergency in preparation for water shortages, especially during the summer months. The drought has entered its third year, and water restrictions have increased throughout the Golden State.

But Nestle does not need to heed the emergency measures the state has adopted. Since its plant is on a Native American reservation – considered a sovereign nation by the US government – it is not required to comply with state regulations.

The reservation is located in a Mojave Desert oasis at the base of the San Bernardino Mountains, 85 miles east of Los Angeles. Drawing water from that location, where just three inches of rain falls each year, prevents water from seeping downhill to fill aquifers of nearby towns struggling for water during the drought.