Ariz. Rev. Stat. § 48-909
A. When the public interest or convenience requires, the board of directors of an improvement district may order:
B. In addition to the powers specifically granted by or reasonably inferred from this article, an improvement district through its board of directors may:
D. An improvement district that proposes to provide domestic water service within the certificated area of a public service corporation serving domestic water shall provide just compensation to the public service corporation pursuant to section 9-516 for the facilities or certificated area taken. The right to compensation for a public service corporation from an improvement district shall not apply if no facilities of the public service corporation are actually acquired by the improvement district and either of the following conditions exist: