Whether it is allowed to get water from the neighbor, I cannot say, but I could imagine that the utility company or whoever is responsible for you might not necessarily agree with it and that this might be prohibited in the terms and conditions.
Regarding the water meter in a pit, I would say that I would not like that. It could be that you have to install a heating system, which means costs.
Has a small hole where he can climb down or where the water meter readers can go to read the meter.
Does someone still come out to read the electricity and water meters where you live? At our place, this was passed on to the owners years ago. If this is the case for you or should happen, it would mean that you would have to climb down into the pit yourself to read the meter. As long as you are still young and agile, no problem. But none of us get younger, or how would it be if due to illness this is no longer possible. So I would prefer to have the meters inside the house rather than somewhere outside. But as I said, this is my personal opinion.