Thinking specifically about public water supply permits -- source, construction and operation.
Looks like the Department of Environmental Conservation controls both public and private water systems in Vermont. So it's their regulations that matter. They have the power to revoke permission for a system to continue operation if it falls out of compliance with their regulations and its water is therefore considered to be unsafe for human consumption.
Without seeing the document that has been recorded in your land records, it's hard to comment beyond that.
In my state, permits for the initial construction of a well or a septic system come with expiration dates and are not recorded in the land records. Once construction is complete and the county health department approves the installations, then there are documents recorded in the land records but they seem to exist primarily to restrict future owner activities in those areas of the property (though they also do serve to inform prospective buyers that these systems exist and were approved at the time they were built).