(1) The board of directors of the district shall have the power to adopt and promulgate all reasonable regulations to secure, maintain, and preserve the sanitary condition of all water in and to flow into any reservoir owned by the district, to prevent waste of water or the unauthorized use thereof, and to regulate residence, hunting, fishing, boating, camping, and all recreational and business privileges along or around any such reservoir, any body of land, or any easement owned by the district.
(2) Such district may prescribe reasonable penalties for the breach of any regulation of the district.
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