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Hollister may incur fines up to $5,000 per day for multiple violations related to its wastewater treatment facility. The Central Coast Regional Water Quality Control Board has identified issues including improper maintenance and inability to produce quality recycled water.

Since June 2025, the San Benito County Water District has not received water due to quality failures, prompting a request for supply from the State Water Project. Estimated fines could reach $1.35 million if imposed from June 1.