Oregon Revised Statutes Public Organizations for Community Service § 264.540

(1) If a city has been annexed to a district under ORS 198.866 and 198.867 or has been joined to a district under ORS 198.910, the city may designate the location and type of fire hydrants to be installed within the territory of the city. The board of commissioners shall establish the rates for the use of water therefrom as provided in ORS 264.330. The city and the district may by contract determine the entire matter of installation of hydrants and use of water therefrom and payment therefor.

(2) The ownership of the water supply system within the city boundaries shall revert to and be vested in the district.