Ariz. Rev. Stat. § 48-122
Notwithstanding the provisions of any law to the contrary, when the director of water resources has issued to any district a permit to make an appropriation of water, or a reservoir permit, and actual construction work under the permit has not begun, and the time prescribed in the permit for beginning construction work has not expired, and the district has, or before the expiration of such prescribed time shall have, made application to any federal agency for a loan or grant, or both, of monies to be used for the construction of its works, or some part thereof, the time for beginning actual construction under the permit is extended until six months after the monies so applied for have become available to the district, but in no event shall such extension exceed two years after the time prescribed in the permit as that within which actual construction must be begun.
A.R.S. § 48-122