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On the sign:
מגדל המים הוקם ב-1940, בהפגזת 22/5/1948 נפגע ומאז שימש עמדת תצפית לאיזור מסמל את עמידת נגבה במלחמת תש"ח
THE OLD WATER TOWER SYMBOL OF THE STUBBORN STAND OF NEGBA 1948
In the next picture from which the sign was taken you can see the destruction caused by the bullets hitting the base of the tower Click for a larger image
The Hebrew text contains more details Translation of the text on the sign:
The Water Tower Established in 1940, in the shelling of 22/5/1948 damaged and since then used as an observation post for the area Symbolizes Negbas standing in the 1948 war