The Water and County Island Disclosure is a form used in Arizona real estate transactions involving properties where water source and county island status are material factors. It is especially relevant for horse property, acreage, rural land, and properties located outside traditional municipal boundaries.

The disclosure addresses the source of the property's water supply — whether it is served by a municipal water system, a private water company, a shared well, or a private domestic well. Each water source carries different rights, responsibilities, costs, and risks that buyers need to understand before purchasing.

County islands are parcels of unincorporated land surrounded by or adjacent to incorporated municipalities. They are governed by the county rather than the city, which affects zoning, building codes, services, and future annexation risk. Many Arizona horse properties are located on county islands — buyers need to understand what that means for their intended use of the property.