N.Y. Envtl. Conserv. Law § 15-1517
Any lands not owned by the state, but required for the purpose of the construction of the reservoir on forest preserve lands shall be acquired by the applicant, by purchase or condemnation, and conveyed by the applicant to the state, provided however that no rental shall be paid to the state for any land thus acquired. The reservoir and all dams, dikes, spillways, gate houses, pipe lines or any other works which the department shall construct on state owned land shall be the property of the state, but shall be operated solely for the benefit of the applicant. All real estate, reservoirs and appurtenant structures acquired, taken or constructed pursuant to the provisions of sections 15-1507 through 15-1519 are hereby dedicated to the uses and purposes for which acquired, taken or constructed, and the right, title and interest acquired by the state therein is so acquired subject to such use and purposes.
N.Y. Envtl. Conserv. Law § 15-1517