2006 New York Code - Reservoirs.

 
    §  2.  The  legislature may by general laws provide for the use of not
  exceeding three per centum  of  such  lands  for  the  construction  and
  maintenance of reservoirs for municipal water supply, and for the canals
  of the state. Such reservoirs shall be constructed, owned and controlled
  by  the  state,  but  such  work shall not be undertaken until after the
  boundaries and high  flow  lines  thereof  shall  have  been  accurately
  surveyed  and  fixed, and after public notice, hearing and determination
  that such lands are required for such public use.  The  expense  of  any
  such  improvements  shall  be  apportioned  on  the  public  and private
  property and municipalities benefited to  the  extent  of  the  benefits
  received.  Any  such reservoir shall always be operated by the state and
  the legislature shall  provide  for  a  charge  upon  the  property  and
  municipalities  benefited  for a reasonable return to the state upon the
  value of the rights and property of the state used and the  services  of
  the  state rendered, which shall be fixed for terms of not exceeding ten
  years and be readjustable at the end of any term. Unsanitary  conditions
  shall not be created or continued by any such public works.