Here in Upstate NY National Grid does not allow anything in that kind of meter socket aka residential overhead 200a, besides the service conductors. Mass isn't any different as far as I know as New England and Mass are the other Grid territory besides Upstate NY.
Your underground water pipe, and/or the supplemental ground rod system, would be all connected at the service disconnect, which is the first place inside the residence that the service entrance conductors terminate. The entrance cable must terminate in a disconnect within a short distance of entering the structure. (short distance which I am still unsure exactly how far but I like to keep it about 4 feet or less.)
Additionally, if you have municipal water, as your diagram indicates, you only need one supplemental ground rod. The water meter connection on the side that goes to the underground water pipe is considered a mandatory ground, then, if the inside water piping is metalic, you jumper across the water meter to Bond the inside water piping.