1. Don't trust the drawing. It could be anywhere / not exist. I've worked in the utility sector, and specifically mapping side of things and they are rarely reliable. At our last property, the drawings showed a main sewer running right through all of the gardens, and if I'd trusted it, we would not have bought the house. In reality it was a further 8m back in an alleyway. You need to get somebody out to lift a few lids and tell you what is what.
2. It will likely be a small pipe serving just a couple of houses. Shallow, but easy to deal with.
3. Build over agreements are possible, you won't know until you have all the info and speak to the water company.