(480) 702-1608

[email protected]

Arizona Attorneys

Dunaway Law Group, PLC

Arizona attorneys with a focus on helping
Arizonians with difficult Legal Matters.
View all services

Domestic Water Improvement Districts

Domestic Water Improvement Districts (DWID) are non-government entities formed for the purpose of constructing or improving a domestic water delivery system or purchasing an existing domestic water delivery system. A domestic water improvement district may also be a county improvement district that is converted to a domestic water improvement district pursuant to A.R.S. § 48-1018.

DWIDs have the authority to finance and serve drinking water inside District boundaries. Rates are established to cover the costs of running the District and serving water. DWIDs are not-for-profit entities. Rates can be set and adjusted as appropriate without gaining approval from the Arizona Corporation Commission or Arizona Department of Water Resources. Rates are established to cover the cost of operation of the DWID.

Arizona Revised Statutes Title 48 – Special Districts.

Article 1: General specific elements for WIDs 48-910 – Authority to set fees, liens and foreclosure.

Article 4: Alternative Form of Government for DWIDS and Domestic Wastewater Improvement Districts. See A.R.S. 48-1011, 48-1012, 48-1013, 48-1014, 48-1016, 48-1017, 48-1019.

Who owns a Domestic Water Improvement District?

Property owners in the community of jointly own the DWID and its assets. Membership in the DWID passes with property ownership. A DWID water meter establishes a connection to the infrastructure and a share of the water production Operating expenses, water production or losses, operating capital, loan acquisition and repayment all are shared by the joint owners.

Who makes the decisions regarding the DWID?

A board is created to make decisions regarding the Domestic Water Improvement District. DWIDs are required by Arizona law to follow the same budget process set out for counties and municipalities which require public notice, public access to estimates of revenues and expenses as well as public hearings. Meetings are announced in advance and agendas are posted. The public is welcome and encouraged to attend.

How are DWIDs funded?

Initially, the DWID may be funded by grants or low-interest loans available through the RWIC or its members. The Arizona Rural Water Infrastructure Committee (RWIC) is a partnership of various federal and state agencies who provide loans, grants and technical assistance to Arizona’s rural communities. The costs to operate the DWID may be wholly covered by the charges for water delivered by the DWID and may not require a tax levy. Districts may also issue bonds for improvements.

A DWID is a “special taxing District” under A.R.S. Title 48, and if revenues from water sales are not sufficient to fund DWID operations, then the DWID has the authority to levy taxes. To do so, DWIDs follow procedures prescribed by Arizona law to notice property owners within the District and hold public hearings. Any taxpayer within the District may appear and be heard in favor of or against any proposed tax levy.

Each year the board of directors of a District must prepare annual statements and estimates of expenses for the District, publish a notice to the public, hold hearings and adopt the budget at the times and in the manner provided for county statements and estimates by Arizona Revised Statutes Title 42, Chapter 17, Article 3. This is the same timeframe required for cities and towns. A vote is not required, but a public hearing must be held and residents within the District have the right to question the proposed budget and any charges resulting from the budget.

Steps for Establishing a DWID

1. Prepare an Application. Per ARS 48-903(A), a petition addressed to the board of supervisors may be filed with the clerk of the board if signed by a majority of the persons owning real property and by the owners of fifty-one percent or more of the real property within the dwid’s across arizona

If you want to start an Arizona Domestic Water Improvement District, or make changes to your existing bylaws, then contact the Dunaway Law Group at 480-702-1608 or message us HERE.