65 ILCS 5/11-124-1
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-124-1)Sec. 11-124-1. Contracts for supply of water.(a) The corporate authorities of each municipality may contract  with any person, corporation, municipal corporation, political subdivision,  public water district or any other agency for a supply of water. Any such  contract entered into by a municipality shall provide that payments to be  made thereunder shall be solely from the revenues to be derived from the  operation of the waterworks system of the municipality, and the contract  shall be a continuing valid and binding obligation of the municipality  payable from the revenues derived from the operation of the waterworks  system of the municipality for the period of years, not to exceed 40, as may  be provided in such contract. Any such contract shall not be a debt within the  meaning of any constitutional or statutory limitation. No prior appropriation  shall be required before entering into such a contract and no appropriation  shall be required to authorize payments to be made under the terms of any  such contract notwithstanding any provision in this Code to the contrary.(b) Payments to be made under any such contract shall be an  operation and  maintenance expense of the waterworks system of the municipality.  Any such  contract made by a municipality for a supply of water may contain provisions  whereby the municipality is obligated to pay for such supply of water  without setoff or counterclaim and irrespective of whether such supply of  water is ever furnished, made available or delivered to the municipality or  whether any project for the supply of water contemplated by any such  contract is completed, operable or operating and notwithstanding  any suspension, interruption, interference, reduction or curtailment of the  supply of water from such project.  Any such contract may provide that if  one or more of the other purchasers of water defaults in the payment of its  obligations under such contract or a similar contract made with the  supplier of the water, one or more of the remaining purchasers party to  such contract or such similar contract shall be required to pay for all or  a portion of the obligations of the defaulting purchasers.(c) Payments to  be made under any such contract with a municipal joint action water  agency under the Intergovernmental Cooperation Act shall be an operation and  maintenance expense of the waterworks system of the municipality.  Any such  contract made by a municipality for a supply of water with a municipal  joint action water agency under the provisions of the Intergovernmental  Cooperation Act may contain provisions  whereby the municipality is obligated to pay for such supply of water  without setoff or counterclaim and irrespective of whether such supply of  water is ever furnished, made available or delivered to the municipality or  whether any project for the supply of water contemplated by any such  contract is completed, operable or operating and notwithstanding  any suspension, interruption, interference, reduction or curtailment of the  supply of water from such project.  Any such contract with a municipal  joint action water agency may provide that if  one or more of the other purchasers of water defaults in the payment of its  obligations under such contract or a similar contract made with the  supplier of the water, one or more of the remaining purchasers party to  such contract or such similar contract shall be required to pay for all or  a portion of the obligations of the defaulting purchasers.The changes in this Section made by these amendatory Acts of 1984 are  intended to be declarative of existing law.(d) A municipality with a water supply contract with a county  water commission organized pursuant to the Water Commission Act of 1985  shall provide water to unincorporated areas of that home county in accordance  with the terms of this subsection. The provision of water by the municipality  shall be in accordance with a mandate of the home county as provided  in Section 0.01 of the Water Commission Act of 1985.  A home rule unit may not provide water  in a manner that is inconsistent with the provisions of this  amendatory Act of the 93rd General Assembly. This subsection is a limitation  under subsection (i) of Section 6 of Article VII of the Illinois Constitution  on the concurrent exercise by home rule units of powers and functions exercised  by the State.       (Source: P.A. 95-331, eff. 8-21-07.)