The Commission and Anne Arundel County may enter into a contract for the Commission to construct, operate, and maintain a water system in Anne Arundel County for the purpose of supplying water to:
(1) the corrective institution of the District of Columbia, as authorized by Chapter 434 of the Acts of 1953, or its successor, if any; and
(2) residents of Anne Arundel County who may be reasonably served from the water system.