Power of Government to direct local authority to execute water works

(2) A local authority may, with the previous sanction of the Government— (a) Construct, lay, or erect filters, reservoirs, engines, conduits, pipes or other works without the limits of its area, for supplying such area with water; (b) purchase or take on lease any water-work or any water, or any right to store or to take or convey water, either within, or without the limits of its area; and (c) contract with any local authority or other person or agency for the supply of water. (3) A local authority may, with the previous sanction of the Government, by public notice, declare any lake, stream, spring, well, tank, reservoir, pond or other source of water supply, whether within or without the limits of its area (other than a source under the control of the Government) from which water 1s or may be made available for the use of the public in the local area for domestic purposes, to be a source of public water-supply for such purposes, and every such source shall thereafter be under the control of the local authority, only to the extent necessary for such purposes.