The municipality shall construct, establish, operate, and maintain a system of waterworks and facilities and may regulate the distribution and use of the supplied thereby. It shall have the authority to assess, levy, and collect taxes and special assessments for such purposes; and may appropriate funds and levy taxes to accumulate funds for such purposes, as provided by SDCL Title 9. The accumulated funds shall be placed in a separate fund which may not revert at the end of the fiscal year. The municipality shall establish a maximum amount allowed to be accumulated in the fund. The fund shall be established by a resolution adopted pursuant to SDCL Chapter 9-19. Every municipality may enter into agreements with the United States, with the state, and with any authorized agency, subdivision, or unit of government, federal or state, to carry out such purposes.
(SDCL § 9-47-1)