N.J. Stat. § 58:5-12
The district water supply commission shall thereupon proceed to formulate plans for obtaining a water supply or a new or additional water supply for the municipality and any other municipalities that may desire water from such joint water supply, as provided for herein, and to estimate the cost thereof, the annual cost of operating the same, the probable share of the cost which each of the municipalities will be called upon to pay for its share of water supply and plant used in common with the other municipalities, and the cost of any distribution system, water supply or plant acquired or constructed for its individual use, and shall report the plans to the municipalities, together with a form of contract, providing for the raising and payment of the necessary funds to meet the cost of acquisition and operation.
If the plans to be formulated pursuant to this section involve obtaining water from the Highlands Region, as defined in section 3 of P.L. 2004, c. 120(C.13:20-3), the district water supply commission shall consult with the Highlands Water Protection and Planning Council established pursuant to section 4 of P.L. 2004, c. 120(C.13:20-4) prior to moving forward with any such plans or entering into any such contracts. The provisions of section 16 of P.L. 2004, c. 120(C.13:20-16) shall apply to the district water supply commission.
N.J.S. § 58:5-12