The National Association of Home Builders lobbies at the federal level to change laws concerning drainage so they can blow off common sense about where the water is, and where it will GO, once land is developed.  The result is erosion, pollution of waterways, and flooding of homes.  Of course, there is a lot of local lobbying going on in the states, too, but it's pretty much all under the eye of the NAHB.

Also, because of wetlands, streams, and runoff from rain, some land really isn't suitable for building, but they build on it anyway, and can thanks to NAHB's and local builders associations' lobbying.  I would not be surprised if in your state you could find evidence that the legislature passed laws promoted by the builders having to do with building in drainage areas, etc.  The public rarely knows this is going on, or what it really means, until it's too late.

http://www.nahb.org/news_details.aspx?sectionID=148&newsID=3033  I just saw this posted on hadd.com today, and came back to edit this post and add it.  It's right along the lines of what's happening here.

One thought, though, is that if this water drainage is under any city authority can you get them to put in underground drainage pipes?  Good luck with this.