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Creating Anna-Van Alstyne Water District as a conservation district, comprising the territory contained in the City of Anna, Collin County, Texas, and the City of Van Alstyne, Grayson County, Texas, as the boundaries of said cities existed on the 1st day of January, 1973, for the purpose of providing a source of water supply municipal, domestic, commercial, and industrial use, and diverting, impounding, storing, treating, and transporting the same, and acquiring, constructing, and operating water facilities; providing for a board of directors for the government of said district; providing the means of annexing additional territory to said district; authorizing the district to obtain permits from the Texas Water Rights Commission and from owners of permits; requiring supervision of the Texas Water Rights Commission; authorizing the district to acquire any interest in land for its purposes by condemnation; providing that any construction contract in excess of $5,000 should be made only after publication of notice; providing for election before issuance of bonds or other obligations; authorizing the district to issue bonds and providing for the payment and security thereof; providing that said bonds shall be payable either from ad valorem taxes or revenues, or a combination of ad valorem taxes and revenues; authorizing the issuance of refunding bonds; authorizing the execution of trust indentures or deeds of trust to secure bonds payable from revenues or partly from revenues; providing for elections approving the issuance of bonds payable wholly or partly from ad valorem taxes; authorizing the district to enter into contracts with public agencies, political subdivisions, and others, including specifically the cities of Anna and Van Alstyne for any purpose relating to the district's powers and functions, including supplying water to them, and for operation of the district's water facilities; authorizing all public agencies and political subdivisions, including specifically the cities of Anna and Van Alstyne, to contract with and convey land or any interest therein to the district; providing for the approval of bonds issued by the district by the Attorney General and registration of bonds by the Comptroller of Public Accounts of the State of Texas; prescribing other powers and duties of the district; providing a severability clause.