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You have the right to connect to the city utility and you may cross your neighbors property in order to do so. This is referred to as a utility prescriptive easement. Your neighbor may not like it but he really has no choice.
You will be responsible to repair any damage to his property. This means if his lawn is torn up you are responsible for fixing the top soil and providing grass seed. But that is only fair sonce you are using his property.
Here is a link on the law regarding this:
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