Cuomo vs. the hospitals: A little context

On the face of it, the situation in Delaware County looks like a straightforward case of polluters brought to justice. Hospitals and nursing homes have been disposing of drugs by flushing them down sinks and toilets, a practice of dubious legality that poses a threat to drinking water and wildlife. State Attorney General Andrew Cuomo caught them at it. Rather than face the full wrath of the A.G. in court, the hospitals settled for fines and policy changes. Press releases were issued; the usual suspects in the environmental community applauded. Heckuva job, as they say.

Beneath the surface, the situation is far more complicated. Cuomo's sting operation has effectively confirmed local suspicions that the state is run at the whim of New York City at upstate expense, undone years of behind-the-scenes work on better ways to dispose of pharmaceutical waste, and put financially struggling rural hospitals in jeopardy with their creditors. It may be that the AG has overplayed his hand.

The Catskill Watershed Corporation (CWC) is scrambling to react to the hospital situation. The 15 members of the board are custodians of the watershed, representing the state, New York City and the dozens of little towns whose hills and valleys drain into the city's reservoirs. In a recent emergency meeting called to address the situation, the mood among the members ranged from dismayed bewilderment to outright rage.

In some ways, New York's Catskill-Delaware watershed is like a state unto itself, with its own laws and its own peculiar politics. A thicket of special regulations designed to protect New York City's watershed make life expensive for local residents and businesses, and to help pay for their costly water system, New York City pumps grants and low-interest loans into the region through the CWC. Since 1997, when an agreement creating the CWC was signed between the state, city and watershed towns, the nonprofit has stood in the middle of all the competing watershed interests, brokering a delicate balance of power.

In the middle of this, Cuomo's surprise strike fell like a sledgehammer on a chessboard, scattering pieces in all directions. While much of this drama is playing out in rural boardrooms far from New York City, it could have deep consequences for the city and its relationship to its upstate water stewards.