A. If a majority of the voters at a regular municipal election approve the purchase or lease of any canal or ditch, the governing body may, for the purpose of supplying water for the use of the people of the municipality:
(1) purchase or lease the canal or ditch;
(2) acquire all the rights, privileges [and] franchises of any person owning or having an interest in the canal or ditch;
(3) hold and operate the canal or ditch in the same manner as the person from whom the canal or ditch was purchased or leased; and
(4) repair, improve or enlarge the canal or ditch or any flume, dam or gate connected with the canal or ditch.
B. The municipality purchasing or leasing a canal or ditch shall assume all obligations and other duties which by law had devolved upon the owner from whom the canal or ditch was purchased or leased.