T The utilization of water resources, particularly groundwater, for business activities without proper authorization constitutes a violation of the principles of sustainable environmental management. this thesis examines the criminal offense of illegal groundwater usage by business actors in gili trawangan, as reflected in decision no. 382/pid.b.l.h/2024/pn.mtr. the objective of this research is to analyze the legal provisions concerning groundwater utilization permits under law number 17 of 2019 on water resources, as well as to examine the legal consequences arising from violations thereof.employing a normative juridical research method and a descriptive-analytical approach, the study finds that the use of groundwater without a groundwater utilization permit (sipa) may result in both criminal and administrative sanctions. the case study of pt. bal reveals repeated violations that have caused environmental harm and demonstrated noncompliance with applicable licensing regulations. these findings underscore the importance of legal enforcement and governmental oversight in the management of water resources. the study recommends strengthening inter-agency coordination and enhancing legal awareness among business actors to prevent irresponsible exploitation of water resources.