Ariz. Rev. Stat. § 48-2641 – Dissolution of district

A. The board of directors of the district, or any landowner whose land is included within the boundaries of the district, may file with the board of supervisors of the county in which the lands included within the boundaries of the district, or the major portion thereof, are located, a verified petition for dissolution of the district, showing:
1. 1. The date of organization of the district.
2. 2. That all indebtedness of the district has been paid, and that there remains outstanding no unpaid warrants, bonds or other obligations of the district.
3. 3. The amount of money of the district remaining undisposed of in the district treasury.
B. The petition shall also set forth any of the following:
1. 1. That all lands of the district are being adequately drained by works constructed by the district, or other persons or organizations, and the works are being operated and maintained by persons or organizations other than the district.
2. 2. That all or substantially all of the lands of the district, since its organization, have been included in an irrigation district vested with the power of drainage.
3. 3. That satisfactory provision for drainage of all lands of the district has been made, and that the continuance of the drainage district is no longer required.
C. Upon filing of the petition the board of supervisors shall fix a date for hearing the petition, and the clerk of the board of supervisors shall give notice of the hearing by publication for three weeks in a newspaper published and circulated in each county in which any of the lands within the district are located. The date of the first publication of the notice shall not be less than twenty-one days before the date of the hearing.
D. All persons desiring to oppose dissolution of the district may file written objections thereto at or before the time of the hearing.
E. The board of supervisors shall hear the evidence offered in support of the petition and in opposition thereto. If the board finds the petition complies with the requirements of this section, and finds that the allegations thereof are sustained by the evidence, the board shall enter upon its records an order declaring the district dissolved. If the board finds that the petition does not comply with this section, or that any of the necessary allegations thereof are not sustained by the evidence, the board shall dismiss the petition. If an order of dissolution is entered it shall terminate all the legal powers and functions of the district.
F. Any funds remaining in the district treasury upon dissolution shall be disposed of either by being paid over to a drainage district or irrigation district with power of drainage that has been formed to replace such drainage district, or paid back pro rata to the taxpayers who paid in such funds, as is provided by the order of dissolution.