(a) Such municipal corporation may contract with any town, city, or village, or any corporation and individuals to supply water to such municipal corporation for the protection of property and for domestic and other purposes.

(b) A municipal corporation is authorized to enter into, with any contracting party or parties, contracts, leases, or lease-purchase agreements with respect to the construction, operation, and maintenance of water systems. These contracts may be entered into for terms not to exceed 40 years or the useful life of the system, whichever is less. (Amended 1983, No. 191 (Adj. Sess.), § 2.)