New York General Municipal Code § 120-T

Town and village may establish a joint water district
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§ 120-t. Town and village may establish a joint water district.  The\nboard of trustees of an incorporated village and the town board of a\ntown may, notwithstanding the provisions of any law, general or special,\nupon the adoption of propositions therefor duly submitted in such\nvillage and town, establish a joint water district for such village and\ntown. Within thirty days after the adoption of such propositions, the\nboard of trustees of the village and the town board of the town shall,\nacting jointly, by a majority vote of each board, adopt a resolution\nformally establishing the district. The town clerk shall, within ten\ndays after the adoption of a resolution formally establishing the\ndistrict, cause a certified copy of such resolution to be filed in the\nstate department of audit and control at Albany, New York. Upon the\nestablishment of a joint water supply district, it shall be lawful for\nthe town and village boards to enter into a contract on behalf of such\njoint district with any water company, or other party or person, to\nsupply water for such town and village, for fire, sanitary or other\npurposes. Any water company authorized to supply water to such town or\nvillage may enter into such contract and lay its conduits, mains and\ndistributing lines, and set hydrants as in the contract provided. Such\nwater company may supply water to any person or corporation residing in\nsuch village and town. The expense of operation of such joint water\ndistrict shall be apportioned by the town and village boards in joint\nsession between the village and the town, based on the assessed\nvaluation of the real property within said village and town according to\nthe last preceding assessment roll. The portion thereof to be borne by\nthe village shall be a village charge and the portion to be borne by the\ntown shall be a town charge.  The portion to be borne by the village\nshall be levied and collected by the board of trustees in the same\nmanner as other village taxes are levied and collected and the portion\nto be borne by the town shall be levied and collected by the town board\nof the town in the same manner as other town taxes are levied and\ncollected. Such money when levied and collected shall be kept in\nseparate funds to be audited and paid by the trustees of the village and\nthe town board of the town pursuant to the provisions of the contract\ntherefor.\n

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