The U.S. Supreme Court case State of Wisconsin et al. v. State of Illinois and Sanitary District of Chicago et al., 1928, revolved around a dispute between the states over water diversion from Lake Michigan by the state of Illinois and its Sanitary District for sewage disposal purposes. The complainant states, including Wisconsin, argued that this diversion significantly lowered lake levels causing harm to their commercial interests in navigation and fishing while also threatening public health due to potential pollution issues. The court ruled in favor of Illinois stating that it had not been conclusively proven that the alleged harms were directly caused by the actions taken by Illinois or its sanitary district nor was there sufficient evidence demonstrating an immediate threat to public health or significant interference with navigational rights as claimed by plaintiffs. However, recognizing potential future conflicts arising from similar situations involving shared natural resources among states, it recommended Congress enact legislation providing clear guidelines on such matters.

In the dissenting opinion for the case between Wisconsin and Illinois, it was argued that the court should not have jurisdiction over this matter. The dissenting justices believed that this dispute about water diversion from Lake Michigan was a political issue rather than a legal one, which should be resolved by Congress or through negotiation between states. They also disagreed with the majority's interpretation of public rights in navigable waters, arguing that these rights are subject to regulation by individual states under their police powers. Furthermore, they contended that there wasn't sufficient evidence proving harm caused to other states due to Chicago's water diversion project and thus no grounds for an injunction against Illinois. Lastly, they expressed concern about potential economic consequences if Chicago were forced to stop its current method of sewage disposal without having an alternative system in place.