In the 1920 case of People of the State of New York v. State of New Jersey and Passaic Valley Sewerage Commissioners, the Supreme Court was asked to resolve a dispute between two states over pollution in their shared waterways. The state of New York sued New Jersey and its sewerage commission for discharging sewage into waters that flowed into Upper New York Bay, arguing it polluted its harbors and interfered with navigation. The court ruled in favor of New Jersey, stating that while both states had rights to use these waters for commerce or other purposes under common law principles, neither could prevent the other from using them as well - even if this resulted in some level of pollution. This decision set an important precedent regarding interstate disputes over environmental issues.

The dissenting opinion in the case of People of the State of New York v. State of New Jersey and Passaic Valley Sewerage Commissioners argued that the court should not have jurisdiction over this interstate dispute about pollution. The dissenters believed that it was inappropriate for a federal court to intervene in what they saw as essentially a local matter, arguing that states should be allowed to handle their own affairs without interference from outside authorities. They also expressed concern about setting a precedent where any state could sue another over environmental issues, potentially leading to an unmanageable number of lawsuits. Furthermore, they questioned whether it was even possible for one state to prove conclusively that its pollution had harmed another state's citizens or property, suggesting such determinations were better left up to experts rather than judges.