32 Pa. Stat. § 671
The Water and Power Resources Board is hereby designated as the agency of the Commonwealth with power to enter into reciprocal compacts and agreements with other states in developing flood control projects and works, and shall have authority to expend moneys made available and appropriated by the General Assembly for interstate flood control works and improvements, located within or without this Commonwealth, on rivers and streams entering into or flowing out of or along the borders of this Commonwealth, and to receive, as augmentations to the General Fund Appropriations for Flood Control Projects from other states and their political subdivisions, any moneys to aid and assist in the construction of flood control works and improvements located in this State which are deemed beneficial to the inhabitants of other states. Payments on account of such interstate works and improvements may be made by the board direct to the contractor or to the agency of such other state which let the contract or is performing the work of constructing such works or improvements, or to the Federal Government, or any of its instrumentalities or agencies supervising the construction of such works or improvements.
The board is further authorized to empower the Federal Government, or any of its instrumentalities or agencies, to supervise the construction of such interstate flood control works and improvements.
32 P.S. § 671