(a) As a necessary aid to the conservation, control, preservation, and distribution of the water of the Red River and its tributaries for beneficial use, the authority may:
(1) purchase, construct, improve, repair, operate, and maintain works and facilities necessary for the collection, transportation, treatment, and disposal of sewage and industrial waste and effluent; and
(2) issue bonds for a purpose described by Subdivision (1).
(b) The authority may contract with:
(1) a municipality or other entity to collect, transport, treat, and dispose of sewage from the municipality or entity; and
(2) a municipality for the use of collection, transportation, treatment, or disposal facilities owned by the municipality or by the authority.
(c) A bond issued under this section must be:
(1) payable from revenue under a contract described by this section or from other authority income; and
(2) in the form and issued in the manner prescribed by law for other revenue bonds and as provided by Sections 8510.0504, 8510.0505, 8510.0506, 8510.0507, 8510.0508, 8510.0509, 8510.0510, 8510.0511, and 8510.0512.