I am in the process of becoming legal. I seem to have run into more red tape than others here so I thought I would see exactly what I am doing wrong.
Had to go before my town's planning board to get approval for my home business. Originally on the docket for March-got bumped to April. In the meantime I had sent in my water test(March-before I got bumped) hoping I would get town approval. The test came back fine but expired (30 days) because my meeting was held up until April. I got town approval. Sent for another water test. Filled out all my license and tax information. Sent it in today with a copy of the original water test and a receipt showing I had sent in a new one, knowing my water test would come back fine. Well, surprise, surprise. I received my test back today-rated unsatisfactory. Same water as before-now it supposedly has bacteria in it. Sent for yet another water test today. Have no idea what to tell the Health dept. when they call for an inspection. Will probably have to reapply(i.e. pay more license fees-because they are non-refundable) when I get the water situation rectified. Mind you-each water test is $50 plus the overnight fees I have to pay because I live in the southern part of the state. GRRRRRRR!!!!
Can you get a water filter? I have a whole home filter in my own home. I also have a sink filter & a shower filter 
Unfortunately, I bake at my parent's house, but I use bottled water. As far as cleaning dishes goes, if I did them at my own house, they would be fine - at my parent's house of course the water isn't filtered.... although I would think it would pass any tests since it is municipal water.... I dunno though. Just a thought though. I'm not legal either yet. I have briefly looked into it and just decided I can't afford to do it right now - so I only have family & friends as customers....
Anyway, I wish you the best of luck! I hope things start going better for you soon!
i feel your pain. i don't have to deal with the water issue because i am in the village but it did take a month and 150 dollars for a special use permit, a special meeting and letters sent to all my neighbors within 200 ft of my house (all my friends). When i originally called, they said a business permit shouldn't be more than 50 bucks but they'd get back to me. because i wanted to advertise in the newspaper the rules changed. I dont have a store front. now it jumped to 150. 
they said i could challenge the ruling, i waited while the clerk looked it up, 150 to challenge! My small town always acts like nobody has ever done this before, i swear they are making it up as they go. the meeting took 5 minutes and half was proposal accepted, i second that...
Good luck with your water testing.
Thanks for the support-I sent for another test, will see what happens, and go from there. I am hoping it was just a false positive-known to happen.( Someone I know had to have their water tested 12 times before they cleared it up) If not, I'll investigate what I should do to fix the problem.
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