(1) “Authority” means the Tennessee local development authority, a public agency, created by title 4, chapter 31, or its successor;

(2) “Construction” means the erection, building, acquisition, alteration, reconstruction, improvement or extension of waterworks, preliminary planning to determine the economic and engineering feasibility of waterworks, the engineering, architectural, legal, fiscal and economic investigations and studies, surveys, designs, plans, working drawings, specifications, procedures and other action necessary in the construction of waterworks, and the inspection and supervision of the construction of waterworks;

(3) “Department” means the department of environment and conservation;

(4) “Eligible project” means a project for the construction of waterworks for which approval is required under this part, which conforms with the applicable rules and regulations of the department, and which in the judgment of the department is economically feasible;

(5) “Law” includes any act or statute, general, special or local, and the charter of any incorporated town or city or metropolitan government of this state;

(6) “Municipality” means any county, metropolitan government, incorporated town or city, or special district of this state empowered to provide water services, or any combination of two (2) or more of the foregoing acting jointly, in connection with an eligible project; and

(7) “Waterworks” includes all or any part of the following: source of supply, pumping facilities, purification works, collection and storage facilities and distribution system for water, together with all necessary parts and appurtenances for proper operation.