New York VIL Code § 17-1712

Water districts
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§ 17-1712 Water districts. In every such village any water districts\ncreated or organized under the provisions of the town law, shall\ncontinue and the board of trustees shall be and they are hereby vested\nwith the full management and control of such districts, and the water\nsystems constructed therein, and the assessment of the cost and expenses\nthereof, which water districts shall until discontinued in the manner\nhereinafter provided, be managed, controlled and operated and may be\nextended or enlarged, by said board of trustees in the manner provided\nin the town law; provided, however, that if any such village shall adopt\na general village water system, such water district or districts may be\ndiscontinued upon the adoption of a proposition for such discontinuance\nat a village election. In every such village any water supply district\norganized under the town law or under the transportation corporations\nlaw shall continue and the boundaries thereof may be extended or\nmodified by the board of trustees, or the board of trustees may\nestablish one or more additional water supply districts in said village,\nby filing a certified copy of a resolution describing the bounds thereof\nas extended or modified, or as established by the board of trustees, in\nthe office of the village clerk; and may contract with any corporation\nin the name of the village to supply water for fire or other public\npurposes to any such district or districts, or in case any such village\nshall own or operate a water supply system the board of trustees may\nsupply water therefrom to any such district or districts for such\npurposes and fix the amount of the rentals and charges therefor; and the\nrentals or expenses thereof under any such contract, or for the supply\nof water by the village shall annually, and in the same manner as other\nexpenses of the village are raised, be assessed, levied upon and\ncollected from the taxable property within such water supply districts,\nrespectively.  No such contract shall be made for a longer period than\nfive years, nor shall the tax in any year for such rentals and expenses\nexceed four mills on each dollar of the assessed value of the taxable\nproperty within any such water supply district.\n

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