Section 11-1120. Supplying water outside of corporate limits

The board of
  water commissioners may sell  to  a  corporation,  individual  or  water
  district  outside  the  village  the  right to make connections with the
  mains or reservoirs of such village for the  purpose  of  drawing  water
  therefrom and fix the prices and conditions therefor. The board of water
  commissioners  of any village may contract with the state of New York or
  with the state authority having control and  supervision  of  any  state
  institution  to  furnish water to such state or state institution either
  within or without  the  corporate  limits  of  said  village  upon  such
  conditions  and  conferring  such  powers  in  the  state  or such state
  authority and for such compensation as said board of water commissioners
  and the state of New York or such state authority may  agree.    If  the
  mains  are  or shall be laid in or through another municipal corporation
  not  having  a  public  system  of  water  works,  the  board  of  water
  commissioners  may  itself  lay  additional  pipes  for  the  purpose of
  distributing water from such mains, and shall have the  same  rights  in
  the  streets  or  highways of such other municipal corporation as if the
  principal system were established therein. The board shall not sell  nor
  permit the use of water under this section if thereby the supply for the
  village or its inhabitants will be insufficient.