A rural water utility in northwest Iowa wants to relax its state-mandated reporting requirements despite regulators' finding that it contributed to a river running dry last year.

"We're done being bullied," said Doug Westerman, general manager of the Osceola Rural Water System. "We're done being pushed around."

A two-mile segment of the Ocheyedan River had no water near May City starting in September. Melting snow has since recharged it.

The fall dryout killed a large number of fish and other aquatic life.

The Iowa Department of Natural Resources, which is charged with protecting the state'...