N.Y. TWN Law § 197-A

§ 197-a. Contracts by water districts or town water storage and\ndistribution districts with water authorities. The town board may enter\ninto an agreement with a public water authority which possesses express\nreciprocal powers whereby the award of contracts or orders for\nengineering services, and for work performed, or materials or supplies\nfurnished in connection with the construction, development, extension or\nimprovement of a water supply or distribution system, or any part or\nparts thereof, for or on behalf of a water district or a town water\nstorage and distribution district may be made by such public water\nauthority, and such an agreement may contain provisions equitably\nallocating costs. If such agreement shall authorize a public water\nauthority to purchase supplies or equipment or to construct public\nworks, such authority shall be subject to all provisions of law to which\na town would be subject in relation to advertising and awarding any such\ncontracts for supplies, equipment or public works. The town board, where\na water district exists, may enter into an agreement with a public water\nauthority which possesses express reciprocal powers whereby the award of\ncontracts or orders for engineering services, and for work performed, or\nmaterials or supplies furnished in connection with the construction,\ndevelopment, extension or improvement of a water supply or distribution\nsystem, or any part or parts thereof, for or on behalf of such public\nwater authority may be made by such town, and such an agreement may\ncontain provisions equitably allocating costs.\n