Sec. 3. (a) The following apply to improvements made under this chapter by a county:
(1) An improvement may be made only in unincorporated areas that contain residential or business buildings.
(2) An improvement may not be made on a tract of land that:
(A) consists of at least ten (10) acres and contains only one (1) building that is used for residential purposes; or
(B) is used solely for agricultural purposes.
(b) A water main extension made under this chapter by a municipality may be made only within the corporate boundaries of the municipality.