N.Y. TWN. LAW § 184-c : NY Code - Section 184-C: Water supply outside of fire districts

The town board of any
  town,  on  behalf  of  a fire protection district or fire alarm district
  situated therein, or on behalf of the area of the town  outside  of  any
  village, fire district, fire protection district or fire alarm district,
  which area is hereinafter referred to as the "unprotected area", (1) may
  purchase  permanent  or  temporary  rights  to take water from cisterns,
  wells, and bodies of water and water-courses within the fire  protection
  district,  fire  alarm  district or unprotected areas, or may lease such
  rights, and (2) may construct and maintain, fire suction pools in bodies
  of water and water-courses, fire  cisterns  and  fire  wells,  including
  necessary  pipes,  pumps,  hydrants  and  other facilities in connection
  therewith and may purchase and lease necessary real property and  rights
  in  land  and  water therefor, in order to provide a supply of water for
  any area of such district or unprotected area which  does  not  have  an
  adequate  and  available  supply or which cannot be suitably supplied by
  contract pursuant to section one hundred eighty-four-a of this chapter.
    Before making any purchase or lease of water  rights  or  constructing
  fire  suction  pools, fire cisterns and fire wells or acquiring any real
  property and rights in land and water therefor, the town board (1) shall
  secure the written statement of the fire chief, or  chief  engineer,  of
  the  fire department or fire company, if any, furnishing fire protection
  in the district or unprotected area that such sources  of  water  supply
  are  adequate  and  that such fire suction pools, fire cisterns and fire
  wells are located properly for fire-fighting purposes and (2) shall hold
  a public hearing in the district or  unprotected  area.  Notice  of  the
  hearing  shall  be  published  at  least  once in at least one newspaper
  having general circulation in the  district  or  unprotected  area,  the
  first  publication  thereof to be at least ten days prior to the day set
  for the hearing.  The notice shall specify the time when and place where
  the hearing shall be held, and shall describe in general terms  what  is
  proposed to be done pursuant to the provisions of this section.
    The  water  and  improvements shall be used for fire-fighting purposes
  only and such water shall not be sold.  The  fire  suction  pools,  fire
  cisterns  and  fire wells constructed and maintained for the purposes of
  any such district or unprotected area shall  be  fenced  or  covered  to
  prevent  trespass by children and domestic animals. Any such improvement
  shall be located upon real property within the fire protection district,
  fire alarm district, or unprotected area, which  has  been  acquired  by
  gift, purchase or lease, or upon which an easement has been acquired, by
  the  town  board  in  the  name of the town for the purposes of any such
  district or area, except such portions  of  the  improvement  which  are
  located  within the bounds of public highways, roads or streets with the
  consent of the state or local official charged with the  supervision  of
  the highway, road or street. No officer or employee of the town shall be
  liable  personally for any damages to persons or property resulting from
  the maintenance of any such improvement on behalf of any  such  district
  or  unprotected  areas,  except  such  damages as result from his wilful
  negligence or malfeasance. The town  board  may  purchase  insurance  to
  protect  the  district  or unprotected area from liability for damage to
  persons  and  property  resulting  from  the  maintenance  of  any  such
  improvement  for  the district or unprotected area. Expenditures for any
  such purposes, and any liabilities for any such damage, shall be  raised
  only  upon the taxable real property in the district or unprotected area
  and shall be assessed, levied and collected in the same manner,  at  the
  same  time,  and by the same officers as town taxes are assessed, levied
  and collected, and, when collected, the amount thereof shall be paid  to
  the  supervisor  of  the town. The supervisor shall disburse such moneys

  for the purposes aforesaid. Moneys shall not be borrowed to finance  the
  cost of any expenditure made pursuant to this section.
    If a fire protection district or fire alarm district shall be situated
  partly  in  each of two or more towns any action which would be taken by
  the town board in the case of a district situated in only one town shall
  be taken by the town boards of the several towns  acting  jointly  by  a
  majority vote of the members of each of such town boards, and the notice
  of  public  hearing  required by this section shall be given by the town
  clerks of the several towns acting jointly.
    If, after proceeding pursuant to this section, an adequate  supply  of
  water  for fire-fighting purposes becomes available for such area, or if
  a suitable supply may be  obtained  therefor  by  contract  pursuant  to
  section  one  hundred  eighty-four-a  of  this  chapter, the town board,
  nevertheless, may continue to act in relation to any  such  district  or
  unprotected area pursuant to this section.