It shall be the duty of said commissioners, after having duly organized, to take full charge and control of the water-works of such borough or incorporated town. Said commissioners shall have power to appoint all necessary officers and agents, and take from them, respectively, such security for the faithful performance of their duty as they shall deem proper; and to fix the salaries and wages of such officers and agents; to provide for the repair, extension, improvement, and maintenance of said water-works, and the erection of new water-works subject to the provisions of existing laws; to collect water-rents, and to make and establish the rates, terms, and conditions upon which water will be furnished to applicants therefor; and to make by-laws, rules, and regulations for the economical and efficient management and protection of said water-works.