Illinois Code § 65 ILCS 5/11-151-3

Except as otherwise provided in this Article, no municipality may
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furnish water or sanitary sewer service to any territory situated within a
public water district and more than one mile from the corporate limits of
the municipality without the district's consent. Nothing in this Section
affects the performance by the municipality of any other function in which
the district is not engaged.

 
A municipality that operates a public water supply and furnishes water
service has the exclusive right, as against a public water district, to
serve residents in the territory within one mile or less of the corporate
limits of the municipality but may consent to the district's providing
service to such residents.

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