45-172

45-172. Transfer of water rights; application;
limitations; required consent

A. A water right may be severed from the land to which it is appurtenant or from
the site of its use if for other than irrigation purposes and with the consent and
approval of the owner of such right may be transferred for use for irrigation of
agricultural lands or for municipal, stock watering, power and mining purposes and to the
state or its political subdivisions for use for recreation and wildlife purposes,
including fish, without losing priority theretofore established, subject to the following
limitations and conditions:

1. Except as otherwise provided in this section no such severance or transfer shall
be made unless approved by the director, and the approval of the director shall prescribe
the conditions of the approval.

2. Vested or existing rights to the use of water shall not be affected, infringed
upon nor interfered with, and in no event shall the water diverted or used after the
transfer of such rights exceed the vested rights existing at the time of such severance
and transfer, and the director shall by order so define and limit the amount of water to
be diverted or used annually subsequent to such transfer.

3. The water rights sought to be transferred shall have been lawfully perfected
under the laws of the territory or the state of Arizona and shall not have thereafter
been forfeited or abandoned.

4. No such severance or transfer of water rights shall be permitted or allowed from
lands within the exterior boundaries of any irrigation district, agricultural improvement
district or water users' association without first having obtained the written consent
and approval of such irrigation district, agricultural improvement district or water
users' association.

5. No right to the use of water on or from any watershed or drainage area which
supplies or contributes water for the irrigation of lands within an irrigation district,
agricultural improvement district or water users' association shall be severed or
transferred without the consent of the governing body of such irrigation district,
agricultural improvement district or water users' association. All proposed applications
for the severance and transfer of a right to use water of or from any watershed or
drainage area which supplies or contributes water for the irrigation of lands within any
irrigation district, agricultural improvement district or water users' association shall
be submitted to the governing body of such irrigation district, agricultural improvement
district or water users' association prior to the filing of such application with the
director. Within forty-five days after the receipt of the application such governing
body shall reject or approve the proposed application. Failure of such governing body to
approve or reject the proposed application within forty-five days after receipt shall
constitute approval of the proposed application by such governing body. No application
for the severance or transfer of a right to the use of water of or from any watershed or
drainage area which supplies or contributes water for the irrigation of lands within any
irrigation district, agricultural improvement district or water users' association shall
be accepted for filing by the director unless accompanied by the written consent of the
governing body of such irrigation district, agricultural improvement district or water
users' association to the proposed application or by satisfactory evidence that such
governing body failed to either accept or reject the proposed application within
forty-five days after receipt by such governing body.

6. A severance and transfer of an irrigation water right appurtenant to lands
within the boundaries of an irrigation district to other lands within the boundaries of
the same irrigation district for agricultural use may be accomplished by the exclusion of
lands to which a water right is appurtenant from within the boundaries of an irrigation
district, and the inclusion in lieu of other lands within the boundaries of such
irrigation district. Such severance and transfer of a water right shall require the
consent of only the irrigation district within which the affected lands are situated and
of the owners of the lands affected by the severance and transfer. No proceedings before
nor approval by the director shall be required to accomplish such severance and transfer.

7. An application for severance and transfer of a water right shall be filed with
the director. The director shall give notice of the application by publication once a
week for three successive weeks in a newspaper of general circulation in the county or
counties in which the watershed or drainage area is located. The notice shall state that
any interested person may file written objections to the proposed severance and transfer
with the director within thirty days after the last publication of the notice. In
appropriate cases, including cases in which an objection has been filed, an
administrative hearing may be held before the director's decision on the application if
the director deems a hearing necessary.

B. Section 45-114, subsections A and B govern administrative proceedings, rehearing
or review and judicial review of final decisions of the director under this section.