Subject to the provisions of this Act, the Paeroa Borough Council is hereby empowered to take, divert, and impound from the water flowing into and in the Waitawheta Stream, situated in Blocks II, VI, and VII of the Aroha Survey District, a quantity of water, not exceeding one and one-half million gallons in any day, in such manner as to the Paeroa Borough Council shall seem expedient for the purpose of supplying the same to inhabitants in the Borough of Paeroa, and, if an agreement is made with any other local authority, to inhabitants in the district of that local authority, and the Paeroa Borough Council is hereby empowered to lay mains and pipes from the said stream to the Borough of Paeroa through part of the County of Ohinemuri in the Hauraki Mining District, along roads, provisional State forests, and other land, and along and across the Waihi-Paeroa Railway-line, and across the Ohinemuri River, and to convey water through such mains and pipes.