(1) The Chief Officer of the Municipality, may, supply water for any purposes, other than a domestic purpose, on such terms and conditions, consistent with this Act and the regulations made thereunder including the condition of withdrawal of water, as may be laid down in this behalf by the Municipality, on receiving a written application specifying the purposes for which the supply is required and the quantity likely to be consumed.
(2) For all water supplied under sub-section (1), payment shall be made at such rate, as may be fixed by the Government from time to time:
Provided that in fixing pro rata unit rate, the Government shall endeavour to cover the cost for operation, maintenance, depreciation, interest payments and other charges related to the water-works and the distribution costs, including distribution losses, if any.
(3) The Municipality may withdraw such supply at any time, if it thinks it necessary so to do in order to maintain a sufficient supply water for domestic purpose.