Rules & regulations regarding storing water supplied by panchayat in sump in Chennai, TN - Advice sought

I am at present residing at Moovarsampet -Chennai- 600091. I have been a resident for more than 25 years. Our well has dried up this summer. So we are using water provided by our panchayat through pipes. Panchayat releases water every alternative day for 2 hrs. And we are storing water in sumps. From sump, we take water to the overhead water tank with the help of motor. We are only pumping the stored sump water to the overhead water tank. Even this was accepted by panchayat. But suddenly they are asking us to close the sump. Is this legally correct? Please do avice.