The Board of Councillors may, with the sanction of, and on such terms as may be approved by, the State Government, supply water to a local authority or other person outside the municipal area.

Power to State Government to take control over imperfect, inefficient or unsuitable water-works etc Power to State Government to take control over imperfect, inefficient or unsuitable water-works etc.:

1. (1) If, at any time, it appears to the State Government that any water-works executed by, or vested in, the Board of Councillors, are maintained or run in an imperfect, inefficient or unsuitable manner, the State Government may, by order, direct the Board of Councillors to show cause within the period specified in the order as to why the water-works with all plants, fittings and appurtenances thereof should not be handed over to the control and management of any other agency belonging to the State Government or any statutory body for such period as the State Government may fix.
2. (2) If no cause is shown to the satisfaction of the State Government within the period specified in the order under sub-section (1), the State Government may, by order, direct that the water-works with all plants, fittings and appurtenances thereof shall be made over to such agency or statutory body as the State Government may fix, and for such period, and on such terms and conditions, as the State Government may determine.