New York TCP Code § 42

Duty to supply water; contracts with municipalities
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§ 42. Duty to supply water; contracts with municipalities. Such\ncorporation shall supply each city, town or village through which the\nconduits or mains of such corporation may pass, or wherein such\ncorporation may have organized, and the inhabitants thereof, with pure\nand wholesome water, at reasonable rates. The board of trustees of any\nincorporated village and the water commissioners or other board or\nofficials performing the duties of water commissioners and having charge\nof the water supply of any city, shall have the power to contract in the\nname and behalf of the municipal corporation for the term of one year or\nmore for the delivery by such corporation to the village or city of\nwater, through hydrants or otherwise, for the extinguishment of fires\nand for sanitary and other public purposes. The amount agreed to be paid\nshall be annually raised as a part of the expenses of such village or\ncity, and shall be assessed, levied and collected in the same manner as\nother expenses, and when collected shall be kept as a separate fund, and\npaid according to the terms and conditions of such contract. No such\ncontract shall be made for a longer period than ten years nor for an\nannual amount exceeding in the aggregate two and one-half mills for\nevery dollar of the taxable property of such village or city, except (a)\nupon the petition of a majority of the taxable inhabitants of any such\nvillage or city, or of the portion thereof to be supplied, or (b) upon a\nproposition to authorize the same submitted to a vote of the electors of\nthe village or city, in the manner provided by the village law or city\ncharter, and approved by a majority of the voters entitled to vote and\nvoting thereon at an annual election or a special election duly called.\nSuch contract shall be for a term not exceeding twenty years.\n

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