N.Y. Gen. Mun. Law § 115

§ 115. Sale of Water. Water shall be sold in bulk to the several\ncontracting municipalities. Rates shall be fixed in such amounts that\nrevenue therefrom shall be at least sufficient to pay all estimated\nannual costs of operation and maintenance and debt service on all\nobligations issued for the purposes of a common supply, whether or not\nsuch obligations are joint obligations. In the event that such revenues\nin any year are insufficient, the excess of cost over revenues may be\napportioned to the participating municipalities and shall be assessed by\neach against the real property within its boundaries.\n