KUALAPU'U, Moloka'i — Moloka'i Ranch has withdrawn the environmental impact statement it prepared for a planned development of 200 luxury house lots at La'au Point, a project opponents say could change the character of what they like to call "the last Hawaiian Island."

The action came Friday as the state Land Use Commission, on Moloka'i for a second day of hearings, was about to vote on member Ruben Wong's motion to reject the EIS. No vote was taken, and a ranch attorney said a revised environmental impact statement will be submitted later.

Some Moloka'i residents criticized the study, saying it failed to adequately assess preservation of water resources and fell short on other issues involving the 1,113-acre site for the lots.

Alton Arakaki, an extension agent with the University of Hawai'i's College of Tropical Agriculture and Human Resources, testified Thursday that Moloka'i Ranch has underestimated how much water the project will use. The ranch, which owns one-third of the 166,400-acre island, proposes supplying La'au with 1 million gallons a day using an existing but contested water allocation from the Kualapu'u Aquifer and a mountain water system.

Glenn Teves, a Moloka'i homesteader who works for the College of Tropical Agriculture, said the EIS didn't account for future water needs, such as planned affordable housing development and growth in Hawaiian homestead communities.

"Where will this water come from?" he asked. "The numbers don't add up, and are estimated to sell the project. For (Moloka'i Ranch), water is money. For Moloka'i, water is life. Which is more important?"

Moloka'i Ranch's plan also calls for conveying 50,000 acres to a community island trust. Half would be owned by the trust, which would own an easement covering the other half, thus controlling use of all the land. The trust would be set up to protect the land from development. The ranch says that part of its proposal is worth $75 million.