The HOA by-laws and covenants control what it can do to enforce collections of fees. It would be extremely risky to challenge the by-laws and covenants because CCIOA provides that the winning party in any lawsuit to enforce them can recover attorney fees from the loser.
When the provision is clear, such as this one, your chances are less than 1 in a million. You would have to convince a court that the penalty on the water and reconnect fee is so outrageous that it should not be enforced. I've never seen a court buy that argument.