AZ SB1595

Allows irrigation districts that qualify for exemptions under section 45-411.01 to deliver groundwater to industrial users or municipal water providers if the district holds a drainage water withdrawal permit and the total delivery does not exceed the permit's allowed volume.

Requires groundwater deliveries under this provision to occur at a location within the irrigation district's exterior boundaries, but allows the water to be transported for use either inside or outside those boundaries.

Mandates that groundwater deliveries terminate upon expiration of either the section 45-411.01 exemptions or the drainage water withdrawal permit, whichever occurs first.

Requires industrial users located within a city or town to first request service from that city, town, or a private water company before an irrigation district may serve them; prohibits irrigation district service if the municipality or private company agrees to serve at customary rates and manner.

Establishes conditions allowing holders of drainage water withdrawal permits to deliver groundwater to industrial users or municipal water providers, contingent on those recipients holding appropriate grandfathered rights, general industrial use permits, or service area rights.