[1]https://cepr.org/voxeu/columns/china-worlds-sole-manufacturi...
Just to add some more context. From the linked article:
> Experts contacted by NPR disagree with the company’s statement. The water is being used to cool the launch pad as Starship’s engines fire. While drinking water may be used in the system, after it comes into contact with the rocket exhaust, it contains high levels of dissolved solids and potentially toxic chemicals like zinc and hexavalent chromium, according to the license application submitted by SpaceX to Texas regulators.
From the SpaceX post[0]:
> Outflow water has been sampled after every use of the system and consistently shows negligible traces of any contaminants, and specifically, that all levels have remained below standards for all state permits that would authorize discharge.
There doesn't seem to be any reason to suspect SpaceX's claims about the contamination so it sounds like they're not running afoul of any state regulations. It's worth noting that they did pay a related fine to the EPA but that doesn't appear to be due to their practices:
> The subsequent fines levied on SpaceX by TCEQ and the EPA are entirely tied to disagreements over paperwork. We chose to settle so that we can focus our energy on completing the missions and commitments that we have made to the U.S. government, commercial customers, and ourselves.