What this guy actually means is that you shouldn't be able to collect rainwater on your property or from public waterways. They tried this in Bolivia (I think?) and it worked for a while until the people just went and lynched all the politicians that put the policy in place.
This is the subtext that is not being said, right. His position is the setup for precisely this point.
I spoke with an American recently who moved to Bolivia and he said living there is like living without a government in a way. Just like you said, the neighborhood people will literally fight against unjust rules. He said, he feels safe there.
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