DESTIN — A 34-year-old Crestview woman was arrested Tuesday and charged with selling alcohol without a license at Crab Island.

According to her Okaloosa County Sheriff's Office arrest report, the woman was sitting on an anchored vessel near WaterWorld Tuesday.

As authorities watched, patrons left WaterWorld and walked to her boat, where they showed her their identification cards or driver's licenses. She then poured alcohol from a clear bottle and handed the cups back to the patrons, the report said.

Patrons told sheriff's deputies they purchased a $15 non-alcoholic drink from a WaterWorld employee, who then sent them to the woman on the other boat to get alcohol added to the drink. Neither WaterWorld nor the woman are licensed to sell alcoholic beverages.

The floating restaurant's commercial use permit was revoked by the National Park Service following the incident, according to Greg Kisela, the county's deputy administrator for operations.

But the business's owner told the Daily News Wednesday that he was the one who instructed his employees to tell customers they could get "free" alcohol from boats parked behind his business.

"My business did nothing wrong," Stan Shipp said. "We've always sold our daiquiris at $15 with or without alcohol. I did it because there was no harm in what she was doing if she was giving it away. It's all political. My main competitor tried to turn me in."

Kisela said that because the business had lost its commercial use permit, the county would be working on revoking its floating structure permit.

"We have to have due process in all of this," he said.

Other arrests are possible, according to Nicole Wagner, a spokeswoman for the Sheriff's Office.

Alcohol sales have been banned on Crab Island since last November. Among other regulations, the county commission prohibited the sale, distribution or consumption of alcoholic beverages on various commercial floating structures or vessels.

Houseboats used as private residences, pontoon boats that are rented for private use, and charter boats and sunset cruise vessels are among the types of watercraft that are exempt from the ordinance.

Shipp holds a seat on the Okaloosa County Floating Structures Committee, which is charged with reviewing last year's regulations to see if they could be enhanced. Shipp said he hopes to continue to serve on the committee.

He said he plans to speak with the National Park Service Thursday to try to get his license reinstated.

He said he asked officials twice to search WaterWorld looking for alcohol and they told him it wasn't necessary.