Since 1983, a section of the community of Los Osos (Prohibition Zone) has been under a septic tank discharge prohibition, Resolution 83-13, issued by the Central Coast Regional Water Quality Control Board because that part of the town's septic tanks are too numerous and concentrated to dissipate nitrates. A building moratorium within the Prohibition Zone became effective in 1989 as part of the discharge prohibition. San Luis Obispo County was the original authority in charge of building the Wastewater Treatment System. Although the design of the County's selected project was nearly complete they were unable to bring the project to fruition. In July 1997, the County appeared before the California Coastal Commission to address an appeal of the construction permit for the project. Due to voiced opposition at the meeting from members of the Los Osos/Baywood Park Community, the Commission postponed its decision until a full hearing could be held. In 1998 an election was held to form the Los Osos Community Services District (LOCSD) by residents as a response to the high cost of the original sewer proposal. The original billing for the sewer of $50 a month in 1984 and is now (2010) estimated to exceed $200 a month with the current estimated cost of construction of the facilities and collection system to be well over $150 million before tax and interest. On January 1, 1999, the District was established and assumed responsibility for constructing the project.