Builders and local governments have lost the first court ruling on the newest generation of municipal stormwater permits. San Diego County Superior Court Judge Wayne Peterson upheld the stormwater regulations adopted in February 2001 by the San Diego Regional Water Quality Control Board. The State Water Resources Control Board had early upheld an appeal of the regulations (see CP&DR Environment Watch, August 2001). The regulations require most residential and commercial developments to capture and treat stormwater runoff in vegetated areas or filtration systems. San Diego County and its cities are to enforce the regulations. The San Diego chapter of the Building Industry Association of America, several developers and the cities of San Marcos and Santee filed a lawsuit that claimed the regulations impermissibly went beyond federal regulations; the regional board wrongly exempted the regulations from California Environmental Quality Act review; and the rules pre-empted local land use authority. Judge Peterson rejected every argument but provided few details in his short ruling. The case is Building Industry Association of San Diego County v. State Water Resources Control Board, San Diego County Superior Court No. GIC780263.