(a) On terms the board determines to be in the best interests of the authority, the authority may cooperate and enter into agreements with another political subdivision of the state, including the Sabine River Authority, for the construction, improvement, extension, maintenance, repair, and operation of water supply and distribution projects and facilities in the authority.
(b) The authority may, separately or jointly with an agency described by Subsection (a), acquire, construct, enlarge, improve, extend, repair, maintain, and operate water distribution projects and facilities for supplying water to users in the authority.