I would try to find in writing what code they addopted and all the ammendments. Unless they passed an ammendment banning the cold water bond he can't fail you. If they adopted the NEC then you would be required to install it. After you did your homework talk to the inspector and ask how this requirement can be enforced are where does it say what he wants. After that try to speak to his boss.
It could be possable the passed an amendment banning the cold water bond. If that's the case I would keep a copy of it and do what they require. I once had a place that banned ground rods. I questioned it. Had no good reason except it's a rule from the last inspector. Then just followed their law.
Think who the liability on if you follow the local law or if you don't.
Tom
