Section 114. Costs

The cost of providing a common supply of water may be
  financed either by the issuance and sale of the joint obligations of the
  contracting  municipalities  or  by  individual  issuance  and  sale  of
  obligations  to  finance  the  proportionate  share  of each contracting
  municipality, as such shares shall be fixed pursuant to the contract. In
  the event that the acquisition and development of a common water  supply
  and  the  construction  of a water works system shall be effected by the
  individual action of one of the contracting municipalities, it shall  be
  lawful  for  any  of the other contracting municipalities to make a lump
  sum payment to such contracting municipality either from moneys on  hand
  and available for such purpose or from moneys received from the issuance
  and  sale  of  obligations.  Nothing  herein contained shall prevent the
  purchase or condemnation of existing  sources  of  supply,  water  works
  systems  or  portions  thereof  necessary  for the purposes of the joint
  project, provided, however, that there shall  be  no  power  to  condemn
  property  the  legal  title  to which is vested in a public corporation,
  district corporation or a special improvement district unless the  owner
  shall  consent  thereto.  In  the event that any source of water supply,
  water works system or portion thereof owned by one  of  the  contracting
  municipalities  is  acquired  for  the purposes of the common supply and
  joint water works system, such municipality  may  be  allowed  a  credit
  against its share of the cost equal to the agreed value of the assets so
  acquired.