Any municipality may contract to buy from the joint system water required for its present or future requirements, including the capacity and output, or a portion or share of one or more specified projects. As the creation of a joint system is an alternative method whereby a municipality may obtain the benefits and assume the responsibilities of ownership in a project, any contract may provide that the municipality so contracting is obligated to make the payments required by the contract whether or not a project is completed, operable, or operating notwithstanding the suspension, interruption, interference, reduction, or curtailment of the output of a project or the water contracted for, and that the payments under the contract are not subject to any reduction, whether by offset or otherwise, and are not conditioned upon the performance or nonperformance of the joint system or any other members of the joint system under the contract or any other instrument. Any contract with respect to the sale or purchase of capacity or output, or a portion or share of them, of a project entered into between a joint system and its member municipalities may also provide that if one or more of the municipalities default in the payment of its or their obligations with respect to the purchase of the capacity or output, or a portion or share of them, in that event the remaining member municipalities which are purchasing capacity and output under the contract are required to accept and pay for and are entitled proportionately to and may use or otherwise dispose of the capacity or output which was to be purchased by the defaulting municipality.

Any contracts with respect to the sale or purchase of capacity and output from a project may extend for a period not exceeding fifty years from the date of the contract and may be renewable and extended upon terms as the parties may agree for not exceeding an additional fifty years; and the execution and effectiveness is not subject to any authorizations or approvals by the State or any agency, commission, or instrumentality or political subdivision of them.

Payments by a municipality under any contract for the purchase of capacity and output from a joint system may be made from the revenues derived from the ownership and operation of the water system of the municipality or from such other sources of funds as may be available, including any amounts received as payments in lieu of taxes. However, no municipality may pledge its full faith, credit, and taxing power to secure its obligations to the joint system or the bonds of the joint system. A municipality is obligated to fix, charge, and collect rents, rates, fees, and charges for water and other services, facilities, and commodities sold, furnished, or supplied through its water system sufficient to provide revenues adequate to meet its obligations under any contract and to pay any and all other amounts payable from or constituting a charge and lien upon the revenues, including amounts sufficient to pay the principal of and interest on general obligation bonds, if any, heretofore or hereafter issued by the municipality for purposes related to its water system.

Any municipality which is a member of a joint system may furnish the joint system with money derived from the ownership and operation of its water system or facilities and provide the joint system with personnel, equipment, and property, both real and personal, and from any other sources legally available to it for such purposes. Any municipality may also provide any services to a joint system.

Any member of a joint system may contract for, advance, or contribute funds derived from the ownership and operation of its water system or facilities or from any other sources legally available to it to a joint system as may be agreed upon by the joint system and the member, and the joint system shall repay the advances or contributions from the proceeds of bonds, from operation revenues, or from any other funds of the joint system, together with interest as may be agreed upon by the member and the joint system.