(a) Any water, sanitary sewer, drainage, or other infrastructure or public facilities constructed, acquired, improved, maintained, or operated by the district shall comply with any applicable regulations of the municipality in whose corporate limits or extraterritorial jurisdiction the infrastructure or facilities are located.
(b) Any water system constructed, acquired, improved, maintained, or operated by the district shall:
(1) comply with any applicable regulations of the municipality regarding specifications for rural density; and
(2) contain distribution lines that are:
(A) four inches or more in diameter; and
(B) sufficient to provide fire hydrant service according to the municipality's specifications for rural density.