What is the test for voiding a water agreement?

British Columbia, Canada

The following excerpt is from Okanagan Equestrian Society v North Okanagan (Regional District), 2018 BCSC 800 (CanLII):

Counsel for the City relies on Burns Lake Indian Band v. Village of Burns Lake, 2000 BCSC 1040. At issue in that case was an agreement by the Village to provide water to the plaintiff pursuant to a 1974 agreement. In deciding that the agreement was void based on its contravention of s. 247, the trial judge held:

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