Water may be supplied by contract, agreement or other legal matter by the district or by a division thereof, when such division is created and authorized, to the United States of America, or any department thereof, the State of Nevada, counties, cities, towns, corporations, irrigation districts, individuals, associations or partnerships, situated within or in the vicinity of the district, and an appropriate charge, consideration or exchange made therefor, when such supply is available or can be developed as an incident of or in connection with the works of the district or the local undertakings of a division.