Section 299-P - Administration of the watershed district; powers; limitations1. Administrative head or body of district. When a watershed district shall have been established, the board of supervisors, with the advice of the agency, shall appoint, designate or establish an administrative head or body in the manner prescribed in section two hundred sixty-one of this chapter in the case of county water districts, as now in effect or as hereafter amended.2. Powers and duties of the district. All the provisions of sections two hundred sixty-one through and including two hundred sixty-four of this chapter in the case of county water districts, as now in effect or as hereafter amended, shall apply, in so far as they may be applicable, to watershed districts and the administrative heads of watershed districts shall possess equivalent powers and authority in watershed district matters, except that the power to purchase or condemn an existing water system or portion or portions thereof shall not be vested in or available to a watershed district or on behalf thereof.3. Limitations on powers and sale of water. The watershed district shall not by construction of any project works or facilities, or otherwise, damage, interrupt or interfere with any works, facilities, project or sources of supply of any person, firm, municipal corporation, waterworks corporation, public corporation, district or authority or of any other body or agency engaged in supplying the inhabitants of any municipality, political subdivision or other civil division of the state with water, nor shall the watershed district or agency engage in the supplying of water to such inhabitants. However, the watershed district, with the approval of the board of supervisors, may by contract agree to sell any excess water at wholesale to any firm, municipality or other public or private corporation, district or authority, or other body or agency engaged in supplying or proposing to supply such inhabitants with water. All such contracts shall be of no force or effect unless and until the watershed district shall have received the approval of the water power and control commission as required by and in the manner provided by article eleven of the conservation law. The watershed district may also contract for the sale of excess water directly to a proposed user for industrial or irrigation purposes. All revenues from such sales and other revenues of a watershed district shall be collected and received by the county treasurer, who shall keep a true account of all such receipts. Such revenues shall be used for said watershed district purposes only.4. Recreational use of water. The administrative head or body may adopt rules and regulations, subject to the approval of the board of supervisors, for the recreational use of the public for bathing, boating and fishing in and on the waters impounded in a project reservoir.5. Acceptance of gifts and services. The watershed district, with the approval of the board of supervisors, may accept gifts of money and property from any source, public or private, and shall apply such gifts to watershed district purposes. The watershed district, with the approval of the board of supervisors, may enter into contracts with any municipality or other civil division of the state and with any person, firm, association and public or private corporation for a contribution of services or other help in the construction of the project or in its maintenance.