Section 209. Application of article

Notwithstanding any other provisions of
  this  chapter, the town board of any town may, in the manner provided by
  this article, establish or extend in said town, improvement districts as
  defined in this article and provide improvements or services,  or  both,
  in  any  such  district,  wholly  at the expense of the district; but no
  water supply district shall be established or extended to include  lands
  situate  within  the  boundaries  of  a  water district. Any improvement
  district as defined in this article established pursuant to this article
  or otherwise may be extended pursuant to the provisions of this  article
  or  any  other  applicable provision of law. However, this article shall
  not apply to the extension of any such improvement  districts  to  which
  the  provisions  of  article  thirteen  of  this  chapter are applicable
  without the prior approval in writing of a majority of the commissioners
  of such district. No such district shall be established or extended in a
  city or in an  incorporated  village  provided,  however,  that  such  a
  district  may  be  established  or  extended  wholly or partly within an
  incorporated village on consent of the village expressed in a local law,
  ordinance or resolution, subject  to  a  referendum  on  petition  under
  section  twenty-four  of  the  municipal  home  rule law or a permissive
  referendum under article five-a of the village law, as the case may be.