Section 119(1) in The Gujarat Municipalities Act, 1963
(1)A municipality may, instead of imposing a water-rate or where a water-rate has been imposed in individual case, instead of levying a rate imposed in respect of the supply of water belonging to municipality to or for use in connection with any private lands or buildings.-(a)fix at rates not exceeding such as shall be specified in the rules in force under section 271, charges for such supply according to the quantity used, as ascertained by measurement; or(b)arrange with any person on his application to supply on payment, periodical or otherwise, water-belonging to the municipality in such quantities, or for such purposes, whether domestic, ornamental, or irrigational or for trade, manufacture or any other purpose, on such terms and subject to such conditions as it shall fix by agreement with such person:Provided that-(a)the meters, connection-pipes and all other works necessary for and incidental to such supply, and all repairs, extensions and alteration of such works shall be under the control of the municipality and the expense thereof shall, so far as it is not inconsistent with the rules or bye-laws of the municipality, to be defrayed by the persons liable for the charges or payments fixed in respect of such supply; and(b)such supply of water shall be and shall be deemed to have been granted, subject to all such conditions as to the limit or stoppage thereof and as to the prevention of waste or misuse, as are prescribed in the bye-laws for the time being in force under section 275.