Section 197-A. Contracts by water districts or town water storage and distribution districts with water authorities

The town board may  enter
  into  an agreement with a public water authority which possesses express
  reciprocal  powers  whereby  the  award  of  contracts  or  orders   for
  engineering  services,  and for work performed, or materials or supplies
  furnished in connection with the construction, development, extension or
  improvement of a water supply or distribution system,  or  any  part  or
  parts  thereof,  for  or  on  behalf of a water district or a town water
  storage and distribution district may  be  made  by  such  public  water
  authority,  and  such  an  agreement  may  contain  provisions equitably
  allocating costs. If such  agreement  shall  authorize  a  public  water
  authority  to  purchase  supplies  or  equipment  or to construct public
  works, such authority shall be subject to all provisions of law to which
  a town would be subject in relation to advertising and awarding any such
  contracts for supplies, equipment or public works. The town board, where
  a water district exists, may enter into an agreement with a public water
  authority which possesses express reciprocal powers whereby the award of
  contracts or orders for engineering services, and for work performed, or
  materials or supplies furnished in  connection  with  the  construction,
  development,  extension or improvement of a water supply or distribution
  system, or any part or parts thereof, for or on behalf  of  such  public
  water  authority  may  be  made  by such town, and such an agreement may
  contain provisions equitably allocating costs.