N.Y. VIL Law § 11-1120

§ 11-1120 Supplying water outside of corporate limits. The board of\nwater commissioners may sell to a corporation, individual or water\ndistrict outside the village the right to make connections with the\nmains or reservoirs of such village for the purpose of drawing water\ntherefrom and fix the prices and conditions therefor. The board of water\ncommissioners of any village may contract with the state of New York or\nwith the state authority having control and supervision of any state\ninstitution to furnish water to such state or state institution either\nwithin or without the corporate limits of said village upon such\nconditions and conferring such powers in the state or such state\nauthority and for such compensation as said board of water commissioners\nand the state of New York or such state authority may agree. If the\nmains are or shall be laid in or through another municipal corporation\nnot having a public system of water works, the board of water\ncommissioners may itself lay additional pipes for the purpose of\ndistributing water from such mains, and shall have the same rights in\nthe streets or highways of such other municipal corporation as if the\nprincipal system were established therein. The board shall not sell nor\npermit the use of water under this section if thereby the supply for the\nvillage or its inhabitants will be insufficient.\n