(a) In this section, "system" means a water system, sewer system, or water and sewer system.
(b) The district may:
(1) acquire a system that serves all or part of the territory located inside or outside the district;
(2) construct a system; or
(3) improve or extend a system the district acquires.
(c) A construction contract is governed by the competitive bidding requirements of the Water Code.
(d) An existing contract for the acquisition of a water or sewer facility may be made on terms agreed to by the parties.