Neighbor building flood dam

Well here goes. I live in Kentucky, Frankfort to be exact. I have an empty lot next to me that was designated as a run off many years ago and was once a pond. The neighborhood I live in is quite new and my house was build right next to said lot. I called the owner of the lot back last year and asked if they could come and find their property pins because the owner is a Civil Engineer and he was the one that plotted the subdivision. He said and I quote, "I have no intention on building on that lot but what are you going to do when someone does and pushes that water back on you." I told him that that was illegal and no one could do that without dealing with the run off. The water that flows into this lot runs from the commercial construction that is behind us and runs for about 1/2 mile in both directions. The water flows under the fence directly into his lot and flows threw my property into his.
He has had fill brought in to build up this plot without dealing with the storm run off. So next time it rains he has basically built a dam for the water that flows from the tow yard, storage building, and parking lot into my property and hopefully not into my finished basement.

What I need to know is, other than getting a lawyer and talking to Zoning & Planning, I think they are friends with said land owner, what actions can I take and who else can I talk to?

Oh yeah, he did all this without getting a building permit.What is the name of your state (only U.S. law)?

Pics before and after would help. It doesnt matter if you think there is some frienship going on , IF your county zoning dept has rules requiring permits for the type of work that was done and rules requiring owners to prevent drainage from damaging anothers property when they change landscaping or add fill , ETC then Friends or not if a local zoning dept will not enforce the law then its not only time to go to city/town council BUT to embaress them with going to local consumer affairs television reporter with the story and let the local politicians take the heat. In the time being you could begin to look at what changes legally you can do to your own land to prevent your basement from flooding.