Please explain how giving away free bottles of water is "vending"?
He may not have the authority to not enforce the law, but it's also apparent that he lacks the judgment necessary to recognize the difference between vending and giving something away. To just keep walking along, looking for those actually vending without a permit.
IOW, this is the kind of attitude that is rife within local and national government nowadays. He's just another example of it and how it all starts.
None dare call it by it's name, stupidity.
All the ancient latins are, of course, dead