(1) If in the opinion of the Government, a local area does not possess a sufficient supply of wholesome water fit for the consumption of its inhabitants, they may direct the local authority concerned, either singly or in combination with the local authorities of areas in the neighbourhood which are similarly situated to execute within such time as the Government may fix, such works as may be directed by the Government for providing a sufficient supply of wholesome water fit for human consumption:
Provided that, if on account of financial or other reasons, any local authority is unable to execute such works and requests the Government to execute such works, the Government, after satisfying itself about the genuineness of the said difficulties, shall execute the said 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 outside the limits of its local area for supplying water within its area;
(b) purchase or take on lease any waterwork, or any right to store or to take, convey water, either within or without the limits of its local 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 local area (other than a source under the control of the Government) from which water is or may be made available for the use of the public and every such source shall thereafter be under the control of the local authority, only to the extent necessary for such purposes.