Michigan Compiled Laws, Chapter 41. Townships § 41.335a

Sec. 5a. The township board may include, in its plan under section 5,  1 rules and regulations for the establishment of a township water board and for loans to the water board from private parties of money necessary to aid in the financing of the project petitioned for under section 1.  2 The loans shall be retired only out of excess money as defined in section 9  3 and other direct revenues, if any, to be derived from the project. A water board established in accordance with this section shall exercise under direction of the township board all of the powers of maintenance and control that are granted by sections 1 to 20a  4 to the township board.