Indiana Code Title 14. Natural and Cultural Resources § 14-33-23-5

Sec. 5. (a) This section applies to a water line or water supply installation installed by a district serving an area that subsequently comes within the corporate limits of a municipality that:

(b) The water line or water supply installation may become the property of the municipality at the option of the municipality, with agreement of the district and approval of the court.

(c) The municipality must reimburse the district at a figure equaling the district's verified cost.  If the municipality and the district fail to agree upon the compensation, the municipality and district shall submit the matter to the Indiana utility regulatory commission for determination.  The district shall protect the district's own operations and obligations.