2005 California Corporations Code Sections 14450-14452 PART 10. WATER AND CANAL CORPORATIONS

14450.  No corporation formed to supply any city, city and county,
or town with water shall do so unless previously authorized by an
ordinance of the authorities thereof, or unless it is done in
conformity with a contract entered into between the city, city and
county, or town and the corporation.  Contracts so made are valid and
binding in law, but do not take from the city, city and county, or
town the right to regulate the rates for water, nor shall any
exclusive right be granted.  No contract or grant shall be made for a
term exceeding 50 years.
14451.  (a) All corporations formed to supply water to cities or
towns shall furnish pure freshwater to the inhabitants thereof, for
domestic uses, as long as the supply permits, at reasonable rates and
without distinction of persons, upon proper demand therefor, and
shall furnish water to the extent of their means, in case of fire or
other great necessity, free of charge.  The board of supervisors, or
the proper city or town authorities, may prescribe proper rules
relating to the delivery of water, not inconsistent with the laws of
the state.
   (b) (1) A corporation formed to supply water to cities or towns
shall not charge, levy, assess, fix, or collect any charge, tax, fee,
rate, assessment, or levy of any kind whatsoever in connection with
its water system on or from any entity providing fire protection
services to others for supplying water for those fire protection
purposes within the service area of the corporation or for any costs
of operation, installation, capital, maintenance, repair, alteration,
or replacement of facilities related to supplying water for the fire
protection purposes within the service area of the corporation,
except pursuant to a written agreement with the entity providing fire
protection services.
   (2) Paragraph (1) of this subdivision does not restrict or limit a
corporation formed to supply water to cities or towns from levying
charges for water service or facilities, including water for fire
protection purposes, on any person, property, or entity, whether
public or private, other than on an entity providing fire protection
service.
   These charges shall be collected from other persons, property, or
entities pursuant to existing provisions of law that authorize the
charges, or from an entity providing fire protection services only
pursuant to the written agreement authorizing the charges.
   (3) For the purposes of this subdivision, "entity providing fire
protection service" means a city, county, or city and county, whether
general law or chartered, or a fire company, fire protection
district, or any other person, association, company, corporation,
district, municipal corporation, or any other public or private
entity, which public or private entity or person provides fire
protection services to any other public or private entity or person.
14452.  Whenever any corporation, organized under the laws of this
state, furnishes water to irrigate lands that the corporation has
sold, the right to the flow and use of that water is and shall remain
a perpetual easement to the land so sold, at any rates and terms
that may be established by the corporation in pursuance of law.
Whenever any person who is cultivating land on the line and within
the flow of any ditch owned by the corporation, has been furnished
water by it with which to irrigate his or her land, that person shall
be entitled to the continued use of that water, upon the same terms
as those who have purchased their land from the corporation.