Section 17-1712. Water districts

In every such village any water districts
  created or organized  under  the  provisions  of  the  town  law,  shall
  continue  and  the board of trustees shall be and they are hereby vested
  with the full management and control of such districts,  and  the  water
  systems constructed therein, and the assessment of the cost and expenses
  thereof,  which  water  districts shall until discontinued in the manner
  hereinafter provided, be managed, controlled and  operated  and  may  be
  extended  or  enlarged, by said board of trustees in the manner provided
  in the town law; provided, however, that if any such village shall adopt
  a general village water system, such water district or districts may  be
  discontinued  upon the adoption of a proposition for such discontinuance
  at a village election. In every such village any water  supply  district
  organized  under  the  town law or under the transportation corporations
  law shall continue  and  the  boundaries  thereof  may  be  extended  or
  modified  by  the  board  of  trustees,  or  the  board  of trustees may
  establish one or more additional water supply districts in said village,
  by filing a certified copy of a resolution describing the bounds thereof
  as extended or modified, or as established by the board of trustees,  in
  the  office  of the village clerk; and may contract with any corporation
  in the name of the village to supply water  for  fire  or  other  public
  purposes  to any such district or districts, or in case any such village
  shall own or operate a water supply system the  board  of  trustees  may
  supply  water  therefrom  to  any  such  district  or districts for such
  purposes and fix the amount of the rentals and charges therefor; and the
  rentals or expenses thereof under any such contract, or for  the  supply
  of  water by the village shall annually, and in the same manner as other
  expenses of the  village  are  raised,  be  assessed,  levied  upon  and
  collected  from the taxable property within such water supply districts,
  respectively.  No such contract shall be made for a longer  period  than
  five  years, nor shall the tax in any year for such rentals and expenses
  exceed four mills on each dollar of the assessed value  of  the  taxable
  property within any such water supply district.