N.J. Stat. § 40:62-96: Water districts; establishment; works and pumping stations; contracts for supply

The governing body of any municipality may provide by ordinance for the creation and establishment within designated boundaries of a water district or districts, and provide for the construction, operation and maintenance of water systems, which may include waterworks and pumping stations in such district or districts, and provide by contract with any individual, or any municipal or private corporation, for the installation, construction, operation and maintenance of such water systems, and for a good and sufficient supply of water for such district. The approval of the state water policy commission for the diversion of water from any new or additional source of water supply shall first be obtained.