(1) Whenever a water supply line or system is in operation in any water district, and is supplying water to the citizens and landowners, and the commission deems it expedient to acquire the existing system, they may examine it, and if they find it properly designed and constructed they may purchase it, and pay for it in the same manner as provided for the original construction and improvement; or may pay for it in whole or in part out of any surplus funds in possession, receipt or anticipation of receipt by the commission.
(2) The commission may order any work or improvement it deems necessary to extend the necessary water mains and water laterals in the district to supply water to the residents of the district, and pay for such work by assessment against the land benefited according to benefits, as provided in this chapter, or may pay for the work in whole or in part out of the general fund of the water district realized from all other resources in the district.