§ 2. The legislature may by general laws provide for the use of not
exceeding three per centum of such lands for the construction and
maintenance of reservoirs for municipal water supply, and for the canals
of the state. Such reservoirs shall be constructed, owned and controlled
by the state, but such work shall not be undertaken until after the
boundaries and high flow lines thereof shall have been accurately
surveyed and fixed, and after public notice, hearing and determination
that such lands are required for such public use. The expense of any
such improvements shall be apportioned on the public and private
property and municipalities benefited to the extent of the benefits
received. Any such reservoir shall always be operated by the state and
the legislature shall provide for a charge upon the property and
municipalities benefited for a reasonable return to the state upon the
value of the rights and property of the state used and the services of
the state rendered, which shall be fixed for terms of not exceeding ten
years and be readjustable at the end of any term. Unsanitary conditions
shall not be created or continued by any such public works.