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Probably goes to an outside hose bib. That's what ours does. If you live in a cold freezing area you would need that to cut off the water supply to the outside hose bib so it doesn't freeze up in the winter.
I hope you live in a warm climate as that being exposed outside can FREEZE up very easily.
Most water mains enter INSIDE the house vs out of the ground EXPOSED next to the foundation on the outside of the residential dwelling.
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