N.M. Stat. § 3-27-3
Potable; jurisdiction over water facilities and source.
A. For the purpose of acquiring, maintaining, contracting for, condemning or
protecting its water facilities and water from pollution, the jurisdiction of the municipality
extends within and without its boundary to:
(1)
all territory occupied by the water facilities;
(2)
all reservoirs, streams and other sources supplying the reservoirs and
streams; and
(3)
five miles above the point from which the water is taken.
B. In exercising its jurisdiction to acquire, maintain, contract for or condemn and
protect the water facilities, the municipality shall not act so as to physically isolate and
make nonviable any portion of the water facilities, within or without the municipality. The
municipality may adopt any ordinance and regulation necessary to carry out the power
conferred by this section.