Supply of water to areas outside municipal area.

(1) The municipality may, subject to the satisfaction of the reasonable requirements of water within the municipal area, supply water to a local authority or any person outside the municipal area, either by itself of through any other agency. (2) The supply of water under sub-section (1) shall be at such rate, not being less than the cost of production and delivery, including the costs of management, operation, maintenance, debt servicing, depreciation of plant and machinery, distribution-loss, and other charges, if any, as the municipality may, from time to time, determine.