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(1)It shall be the duty of the Authority so far as reasonably practicable to enter into and maintain such arrangements with water undertakers for securing the proper management or operation of—
(a)the waters which are available to be used by water undertakers for the purposes of, or in connection with, the carrying out of their functions; and
(b)any reservoirs, apparatus or other works which belong to, are operated by or are otherwise under the control of water undertakers for the purposes of, or in connection with, the carrying out of their functions,
as the Authority from time to time considers appropriate for the purpose of carrying out its functions under section 125(1) above.
(2)Without prejudice to the power of the Authority and any water undertaker to include any such provision as may be agreed between them in arrangements under this section, such arrangements may—
(a)make provision by virtue of subsection (1)(a) above with respect to the construction or installation of any reservoirs, apparatus or other works which will be used by the undertaker in the carrying out of its functions;
(b)contain provision requiring payments to be made by the Authority to the undertaker; and
(c)require the reference to and determination by the Secretary of State or the Director of questions arising under the arrangements.
(3)The Authority shall send a copy of any arrangements entered into by it under this section to the Secretary of State; and the obligations of a water undertaker by virtue of any such arrangements shall be enforceable under section 20 above by the Secretary of State.
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