The San Luis Obispo County Board of Supervisors upheld up its vote to allow four development projects in the bayside town of Los Osos after lifting a 35-year building moratorium, despite community concerns over new construction threatening their water source. The moratorium, lifted last year, was placed on town over three decades ago to protect it’s only water source, the Los Osos groundwater basin. … The Los Osos Sustainability Group appealed the construction permits for two homes and two hotels in Los Osos at Tuesday’s board meeting, arguing that the projects threaten the sustainability of the town’s fragile groundwater basin by placing additional demand on a water supply that is already in “critical overdraft,” according to the group.