AZ Rev Stat § 45-161 (2021)
2021 Arizona Revised Statutes|Title 45 - Waters|§ 45-161 - Applications for reservoir permits; secondary permits for water

45-161.  Applications for reservoir permits;  secondary permits for water A. Applications for reservoir permits shall be governed by this article,  except that the lands proposed to be irrigated from the works need not be enumerated in the primary permit. B. The person proposing to develop the supply of water or to complete the necessary works shall file an application for a primary permit that sets forth the plans and specifications for construction of the reservoir and associated diversion or delivery works,  if any. On completion of construction or development of the supply of water,  the holder of the primary permit shall file a notice of completion with the director. C. The person proposing to apply to a beneficial use the water stored in such reservoir shall file an application for a secondary permit,  which shall refer to the reservoir as the supply of water and shall show that a written agreement has been entered into with the owners of the reservoir for a permanent interest in the reservoir sufficient for the purposes set forth in the application. When the beneficial use has been perfected under the secondary permit,  the director shall issue to the holder of the secondary permit a final certificate of appropriation that describes both the conduit described in the secondary permit and the reservoir described in the primary permit. D. If the development of the supply of water and the completion of the proposed works are to be undertaken by the same person proposing to apply the water to a beneficial use,  the person shall file a single application for a reservoir permit. In processing an application filed pursuant to this subsection,  the director shall not issue separate primary and secondary permits but shall issue a single reservoir permit for the development of the supply of water,  construction of the proposed works and application of the water to a beneficial use. When the beneficial use has been perfected under the reservoir permit,  the director shall issue to the holder of the reservoir permit a final certificate of appropriation that describes both the conduit and the reservoir described in the reservoir permit. E. If at any time it appears to the director,  after an administrative hearing,  that the holder of the primary permit will not or cannot within a reasonable period develop the supply of water or complete the works,  the director may,  upon application of the holder of the secondary permit,  permit such holder joint occupancy and use under the primary permit with the holder of the primary permit to the extent deemed advisable by the director,  but such applicant shall pay to the holder of the primary permit a pro rata portion of the total cost of the works,  which shall be based on the proportion of water used by the original and the additional users of such works. F. Nothing in this section or in section 45-257,  subsection B,  paragraph 1,  shall be construed as modifying the law of priority or the requirement of section 45-141,  subsection B,  that beneficial use shall be the basis,  measure and limit to the use of water. G. 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.