(a) The district may contract with a municipality or other entity to supply water to the municipality or entity.
(b) The district may contract with a municipality for the rental or leasing of or for the operation of the municipality’s water production, water supply, and water filtration or purification facilities on the consideration agreed to by the district and the municipality.

(c) A contract entered into under this section may:
(1) be on terms and for the time agreed to by the parties; and
(2) provide that the contract will continue in effect until bonds specified in the contract and refunding bonds issued in lieu of the bonds are paid.