Illinois Code § 70 ILCS 3705/20

Any district organized under this Act may contract to supply
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water to any city, village or incorporated town owning and operating a
waterworks system whether said city, village or incorporated town is
located within the corporate limits of the district or not, and any such
district may also supply water for public and domestic use in the area
surrounding the limits of said district; provided, the supplying of such
water is merely incidental to the maintenance and operation of its
waterworks properties for the use and benefit of the inhabitants of such
district.

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