A.R.S. § 48-2717: Exemption from taxation of bonds and certain property of district

The rights of way, ditches, drains, conduits, flumes, pipe-lines, dams, reservoirs, pumping-plants, water and other property of like character belonging to any drainage district, as well as the bonds or other evidences of indebtedness of the district, shall not be taxed for state, county or municipal purposes.