This happened to me at this house.
The original outgoing line to the sewer was made of a product called "Orangeburg" (or so I was told).
The original incoming steel line had been replaced at some point with 1-1/2" black plastic pipe. When they replaced it, they did not lay down a bed of pea gravel or sand - they dropped it right down in the hole and buried it.
At a point where the pipe was on top of the sharp edge of a rock, over time the incoming pipe developed a leak.
The jet of water coming out of the incoming line blew a hole through the side of the outgoing line, which was (in violation of local codes) buried only about a foot away from the incoming line.
When I got the water bill for $1400.00, I called the utility company to get it sorted out.
They sent a guy out to look, who told me "Yeah, you got a gusher going here!"
Two contractors and $8000.00 later, I had new incoming and outgoing lines.
Generally speaking, the local utility district does not want you screwing around with their meter or the shut-off valve at the meter. As noted above, you are liable for any damages to their equipment.
You should have a water shut-off at the house. (Unfortunately not all houses do. This one didn't, even though code required it when the house was built - go figure.)
The plumbing contractor who did the work here told me about half the houses in Tacoma were plumbed with the "Orangeburg" pipes going to the sewer. He noted that he didn't have to worry about job security for himself or his son - ever.
