There were problems with what nestle were doing, but it was a lot more subtle than "selling water is bad."

Specifically it was in CA in an area with an already low water table. There were all kinds of state restrictions in place for local businesses and residents to stop any one person from hoovering up all the water and causing problems for everyone else.

But like most western states a good chunk of the land is federal, so nestle went around the restrictions by obtaining a licence to bottle water on federal land, thus making huge profits from a resource everyone else has very restricted access to.