Deep-sea water bottler Koyo will pay the state millions to settle a health violation case with the state.

Our Moneyblog reports:

The state says it has agreed to settle health violation fines against Koyo USA Corp., a Big Island producer of bottled water made from deep-sea water.

Koyo USA, which is based at Kailua-Kona’s Natural Energy Laboratory of Hawaii Authority, will pay the state Department of Health a total of $2 million in fines. The state had fined the company $5 million last September.

The health department had issued a notice and order against Koyo for using an unapproved manufacturing process for its bottled water between 2006 and 2011. The company had a permit to filter ocean water, but was required to follow a specific filtration process. The company’s products did not have to be recalled. 

Koyo has already paid $1 million to the state, and a second payment is due by August 2013, the state said.