As far as i uderstand from the datasheet it is need for the internal reference and i can use single supply but i will need to provide external voltage reference?
Yes, if you use a single supply with the 7107, then you'll need to provide an external reference.
The way 7905 is connected seems a little bit sketchy to me. What do you think about?
Yup... Looks like they have the input polarity on the 7905 backwards. (Pin 2 should be more negative than pin 1 for proper operation) Doesn't look like that will work.
The datasheet on page 10 shows how to use a CD4009, some diodes, and capacitors to generate the -5v rail (Well, -3.3V which is good enough). Something like a 74HC04 could possibly work in place of the CD4009 as well.
How will you be powering this project anyway? Mains? Battery?