AZ HB2826

Amends Arizona Revised Statutes sections 48-2990 and 48-2991 to include municipalities within irrigation district boundaries as entitled to pro rata water distribution under contractual entitlements.

Requires irrigation districts to prepare and publish annual reports showing month-to-month water available for distribution, apportionment, and deliveries for the previous twelve months, including identification of water deliveries to entities outside district boundaries.

Entitles municipal customers to a refund of water taxes assessed and paid during any year in which water was available for distribution but not delivered, beginning in tax year 2025.

Clarifies that water supply is not considered insufficient if a district has accumulated credits for water stored behind a dam, but prohibits districts from retaining or accumulating additional credits unless they have fulfilled obligations to supply water to all irrigable lands and municipal contractual entitlements within their boundaries.