Both should alter their courses. In Mission Bay, Agua Hedionda Lagoon and at El Capitan, three locations in San Diego County that feature specially designated PWC areas, all boats are required to travel in a counterclockwise direction. Otherwise, it's going to cost you. For example, in the open ocean, PWC can go no faster than five mph within 1,000 feet of the shoreline, away from the surf line, and at least 100 feet away from surfers. It is also unlawful to operate within 200 feet of a beach frequented by bathers.
Fines escalate according to the gravity of the endangerment.