Section 120-T. Town and village may establish a joint water district

The
  board of trustees of an incorporated village and the  town  board  of  a
  town may, notwithstanding the provisions of any law, general or special,
  upon  the  adoption  of  propositions  therefor  duly  submitted in such
  village and town, establish a joint water district for such village  and
  town.  Within  thirty  days after the adoption of such propositions, the
  board of trustees of the village and the town board of the  town  shall,
  acting  jointly,  by  a  majority vote of each board, adopt a resolution
  formally establishing the district. The town  clerk  shall,  within  ten
  days  after  the  adoption  of  a  resolution  formally establishing the
  district, cause a certified copy of such resolution to be filed  in  the
  state  department  of  audit  and  control at Albany, New York. Upon the
  establishment of a joint water supply district, it shall be  lawful  for
  the  town  and village boards to enter into a contract on behalf of such
  joint district with any water company, or  other  party  or  person,  to
  supply  water  for  such  town  and village, for fire, sanitary or other
  purposes. Any water company authorized to supply water to such  town  or
  village  may  enter  into  such contract and lay its conduits, mains and
  distributing lines, and set hydrants as in the contract  provided.  Such
  water  company may supply water to any person or corporation residing in
  such village and town. The expense of  operation  of  such  joint  water
  district  shall  be  apportioned by the town and village boards in joint
  session between  the  village  and  the  town,  based  on  the  assessed
  valuation of the real property within said village and town according to
  the  last  preceding assessment roll. The portion thereof to be borne by
  the village shall be a village charge and the portion to be borne by the
  town shall be a town charge.  The portion to be  borne  by  the  village
  shall  be  levied  and  collected  by  the board of trustees in the same
  manner as other village taxes are levied and collected and  the  portion
  to  be borne by the town shall be levied and collected by the town board
  of the town in the same manner  as  other  town  taxes  are  levied  and
  collected.  Such  money  when  levied  and  collected  shall  be kept in
  separate funds to be audited and paid by the trustees of the village and
  the town board of the town pursuant to the provisions  of  the  contract
  therefor.