N.Y. Gen. Mun. Law § 120-T
The board of trustees of an incorporated village and the town board of a town may, notwithstanding the provisions of any law, general or special, upon the adoption of propositions therefor duly submitted in such village and town, establish a joint water district for such village and town. Within thirty days after the adoption of such propositions, the board of trustees of the village and the town board of the town shall, acting jointly, by a majority vote of each board, adopt a resolution formally establishing the district. The town clerk shall, within ten days after the adoption of a resolution formally establishing the district, cause a certified copy of such resolution to be filed in the state department of audit and control at Albany, New York. Upon the establishment of a joint water supply district, it shall be lawful for the town and village boards to enter into a contract on behalf of such joint district with any water company, or other party or person, to supply water for such town and village, for fire, sanitary or other purposes. Any water company authorized to supply water to such town or village may enter into such contract and lay its conduits, mains and distributing lines, and set hydrants as in the contract provided. Such water company may supply water to any person or corporation residing in such village and town. The expense of operation of such joint water district shall be apportioned by the town and village boards in joint session between the village and the town, based on the assessed valuation of the real property within said village and town according to the last preceding assessment roll. The portion thereof to be borne by the village shall be a village charge and the portion to be borne by the town shall be a town charge. The portion to be borne by the village shall be levied and collected by the board of trustees in the same manner as other village taxes are levied and collected and the portion to be borne by the town shall be levied and collected by the town board of the town in the same manner as other town taxes are levied and collected. Such money when levied and collected shall be kept in separate funds to be audited and paid by the trustees of the village and the town board of the town pursuant to the provisions of the contract therefor.
N.Y. Gen. Mun. Law § 120-T