Watershed districts may be created pursuant to this section to protect, restore and maintain the natural functions and values of coastal wetlands; freshwater wetlands; rivers, streams and great ponds; coastal harbors; bays; estuaries and marine waters and to manage and conserve the land and water resources of watersheds of those resources within the jurisdictions of these districts. The natural functions and values of those resources include water quality, water quality maintenance, aquatic and wildlife habitat, scenic quality and floodwater storage and conveyance. The term “participating water district,” as used in this chapter, means a water district, as defined by Title 35?A, section 6101, subsection 3, included in the application provided for by section 2002. [PL 1993, c. 721, Pt. E, §2 (AMD); PL 1993, c. 721, Pt. H, §1 (AFF).]