N.Y. ENV Law § 15-1521

§ 15-1521. Supply of water to other public water supply systems.\n On any application for a new or increased withdrawal of water for a\npublic water supply system, the department may require or authorize the\napplicant to make provisions for the supply and to supply water to any\narea of the state which as determined by the department in its decision\non that application properly should be supplied with water from the\nsource or sources of water supply sought by the applicant. The owner or\noperator of any existing or proposed public water supply system within\nsuch area may apply to the department for a permit to take water from\nthat source of water supply or from any part of the public water supply\nsystem of the applicant supplied in whole or in part from that source.\nIf the department so requires, or if it grants a permit, it shall be the\nduty of the applicant so to supply water, subject to such requirements\nas the department may impose. The price to be paid for the amount of\nwater so to be taken may be agreed upon between the applicant and the\ntaker of the water, or if they cannot agree, fair and reasonable amounts\nand rates shall be, after due hearings thereon, fixed by the public\nservice commission. Any such agreement or determination of the public\nservice commission may from time to time be modified by further\nagreement between the parties affected thereby or by the further order\nof the commission.\n