If the water meter is so high that it will be behind the backdrop, it shouldn't be too expensive to simply have it lowered. Mine isn't in the layout room, but it's only a couple feet above the basement floor (and has a remote read-out outside of the house).
Then, all you'll need to do is curve the backdrop around the pipe, with access to the meter beneath the layout. The bulge in my Masonite backdrop, below, covers the main drain for the house (there's a cleanout, easily accessible, below the layout) and also curves around an outside corner of the basement wall, accounting for the wide radius of the compound curve. The gap is for construction of a second level of the layout.

Wayne