Water bill \ Water meter question

[Norbin Cruz]

Question for the experts. I recently closed on a deal which carried a huge water bill because there was a leak from a pipe burst that happened during the winter. I had the cost of the bill adjusted from the purchase price so it is not that I am losing money here. However, after demo, we discovered that breakage occurred before the meter. See photo attached.

The logic is how was the town able to measure the water if the breakpoint was before the meter. I tried working things out with the town's clerk but all I am being told is that it was read and I need to pay for it.