Section 118. Development of a supply of water for sale

Any city or village,
  any  county  on behalf of a county water district and any town on behalf
  of a town water district or water storage and distribution district may,
  in  addition  to  all  other  powers  possessed  with  respect  to   the
  development  and distribution of water, provide for the development of a
  supply of water in excess of its own needs, for the purpose of sale to a
  public corporation or improvement district which possesses the power  to
  purchase  a  supply  of water, and, any provision of law to the contrary
  notwithstanding, may contract indebtedness for such  purpose.  The  term
  "public  corporation"  as  used  in  this  article  shall  mean a public
  corporation as defined in the general corporations law.