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I would suggest starting at the souce first. Ask the neighbor about his water usage. See if he would not run water for a 5 minute period and see if you still hear running water. Many water departments will not install a seperate meter without a seperate account. When I lived in Ohio, a landlord was required to have the bill in their name but could charge the tenant for the bill. Good luck.
 
While I agree that it is legal to do this, it is not cheap. My comments were to give you a no-cost option to help settle the problem. Your neighbor may have a leak they are not aware of, or don't care about.
 
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