Section 55374 Of Chapter 4. Property From California Water Code >> Division 16. >> Part 3. >> Chapter 4.

. Whenever any portion of the territory of a district shall be annexed to, or otherwise included within any one municipal corporation which owns works for supplying its inhabitants with water, the board may lease to the municipal corporation, for periods not exceeding five years, the portion of the district's distributing system that is in the portion of the district annexed to or included in the municipal corporation.