Killtaker, all fresh water in the state is considered a water supply and part of some jurisdiction's 100 year water supply plan, a plan required by the state. Being a water supply conveys no unilateral control over the resource unless the authority owns all land surrounding the water and can control access to the water. Even then the water remains the property of the state and the state can impose regulations on its use.
If the DEEP so wishes, the DEEP Commissioner can roll over the City of Danbury with one very short phone call to Mayor Boughton.