Shane Banks, who lives next door, became concerned last spring when the campground expanded and he noticed the septic installations didn't extend, too. (CBC)
CBC News has learned the province is investigating Strang's Shore Camping, a private trailer park in Murray Beach.
The province won't respond to questions about what is under investigation, but the probe comes after residents wrote to the Department of Environment before Christmas, asking if they could get a copy of environmental studies carried out before the campsite opened about five years ago.
It turns out the department had no record of any environmental impact assessment associated with the project.
Murray Beach, which can be found along the Northumberland Strait near the Confederation Bridge, started making headlines in December, after Health Minister Victor Boudreau highlighted its poor water quality in an interview.
"There are some days in the summer where Murray Beach, the results are worse than Parlee Beach," Boudreau said on Information Morning Moncton in reference to the water quality tests for fecal bacteria . "So what does that tell us?''
Growing concerns from residents
Shane Banks, who lives right next door to the campsite, said he and his wife started becoming concerned last spring, when they noticed it expanding, with no work being been done to extend the septic drain field.
"It doesn't seem to me as though there is enough leaching system in place," said Banks, who operates a similar septic system on his property, as no one in the area is hooked up to municipal sewage. Banks and other neighbours started testing their drinking water, because of concerns their well water might be getting contaminated.
Banks and his neighbours sampled their drinking water this winter to have a baseline to test against if were to become contaminated in the summer. (CBC)
He wonders if the campsite's septic installations are sufficient, and whether contaminants could be seeping into the ground and impacting his well water.
He believes the same thing could be happening to the water at the beach, and worries there is no consequence to developers not abiding by the rules.
"There doesn't seem to be any checks or balances in place, for us out here in the rural setting anyway," he said.
"It's like the Wild West out here. You put a development and hope for the best."
Too much development?
In his recent comments about Murray Beach, Boudreau said water quality was a separate issue from development. This came after he was asked whether he was the right person to make decisions on water quality, given his stake in a proposed mega–campground in Shediac.
"These issues [development] are not in Murray Beach, so it tells me there's a broader problem," he said at the time.
"Mr. Boudreau is incorrect in this statement as there is a large seasonal campground just east of the provincial park providing services to in excess of 150 recreational vehicles," wrote other cottage owners, Brent and Sandy Conrad, in their email to the Department of Environment in December.
Neighbours said Strang's Shore Camping opened about five years ago, and now has about 150 sites. (CBC)
"More and more developments of this type are popping up in that area," they said.
"I'm not against development," said Banks. "I mean gee, we'd like to have the jobs, we'd like to have people coming in and using the area, but at the expense of losing your drinking water or contaminating the beach?"
Clean environment act violated
The Department of Environment has indicated it has no record of the owners of Strang's Shore Camping undergoing an environmental impact assessment registration and review.
Since 1987, the clean environment act dictates all major recreational or tourism developments in New Brunswick should register for an EIA, to help the province determine whether the project can go ahead.
Marc André Chiasson, a communications officer for the department, said a campground of close to or more than 100 units, and requiring its own water supply and sewage treatment, as is the case here, would be considered a major project.
It is not clear why the campground did not undergo the assessment, or why it has taken until now to open an investigation.
CBC News tried several times to contact the owners but did not receive a response.
Hollie Lake lives down the road from Murray Beach. She doesn't understand why there were no signs posted indicating water quality.
Beachgoers are concerned they were not told of high levels of fecal bacteria at Murray Beach when they swam there this summer.
Testing at the provincial park revealed the water remained open to swimming on at least 26 days when it should have been closed under federal guidelines, and no signs were posted to let swimmers know.
On June 15, fecal streptococci levels above federal norms were detected at the west and east ends of Murray Beach. The water was not tested again until June 20.
Then on July 26, fecal streptococci level were found again to exceed federal norms for safe swimming, and remained elevated during the next two testings, on Aug. 3 and Aug. 16. The department of tourism has declined providing test results after Aug. 16, saying results were still being compiled.
Murray Beach and Parlee Beach provincial parks are the two beaches in the province where water testing falls under the jurisdiction of the tourism department as opposed to health.
'It makes me mad'
Hollie Lake lives a kilometre down the road from Murray Beach and has been swimming there for the past 30 years.
She was shocked to learn of the pollution problem.
''It makes me mad,'' said Lake. ''We should be informed of what's going on in our waters. There are lots of kids at this beach in the summer time. It's a busy beach.''
Mellissa Creighton lives in Charlottetown. She was unaware of issues with water quality when she went camping at Murray Beach this summer with her children.
''Being from the island I didn't give it any thought at all,'' said Creighton. ''Because there seems to be no issue with the water quality on the Strait side here.''
''I really was upset. These are my children and they're swimming in the water. The beach was quite busy that day. And I had no idea.''
Not like this in P.E.I.
Creighton said it's not the fact there was an issue with water quality that worries her the most, it's not being notified.
''At least to know there had been an issue and they were keeping an eye on it would be reassuring in itself,'' said Creighton.
Creighton said the lack of signage in New Brunswick is a stark contrast to the way P.E.I. beaches are managed.
Water testing at Murray Beach revealed the water should have been closed to swimming for a large part of August because of fecal bacteria.
''There's lots of signage there. Water quality, temperature, the date as to when it was taken. The beaches are very important to the tourism here in P.E.I.''
Creighton said while some in New Brunswick may have heard of poor water quality, those visiting from out of province are left even more in the dark.
''If you've got a place that's basically drawing the tourists in from far and away, you can't assume that they're actually aware of the situation unless you have signage right there,'' said Creighton.
'System not perfect'
Acting chief medical officer of health Dr. Jennifer Russell said because there are no signs at Murray Beach, in the past guests entering the park were given pamphlets.
''The Office of the Chief Medical Officer of Health recognizes that the current system is not perfect,'' said Russell.
But beachgoers CBC spoke to said they did not receive pamphlets informing them of water quality this summer.
Hollie Lake lives down the road from Murray Beach. She doesn't understand why there were no signs posted indicating water quality. 
The liberals would just let themselves and their buddies build a massive campsite in the park.
I vote for return8ng it to true man- free nature
Methinks it follows that you must be rich N'esy Pas?