The water pipe run underground from the street into the alley and into the water meter is the main water supply and the piece above is what supplies the building.

Question: Can someone give a summary of the 2002 NEC rules that address the use of the water pipe as an electrode, and cover any limitations that may be considered here?

I know this reply is a little dated but here it goes..article 250.52.a.1 states that there must be at least 10' of metal underground pipe in direct contact with the earth...an alternate grounding electrode would have to be selected.