Cities of the second class and villages shall have power to make contracts with and authorize any person, company, or corporation to erect and maintain a system of waterworks and water supply, and to give such contractors the exclusive privilege for a term not exceeding twenty-five years to lay down in the streets and alleys of such city or village water mains and supply pipes, and to furnish water to such city or village, and the residents of such cities or villages, under such regulations as to price, supply, and rent of water meters, as the city council or village board of trustees may from time to time prescribe by ordinance for the protection of the city or village. The right to supervise and control such person, company, or corporation shall not be waived or set aside.