A regional water district may be dissolved by the district court for the county in which fifty percent (50%) or more of the real property of the district is located upon application for that purpose filed by a majority of the members of the board of directors of such district. The application or petition shall be in writing and shall set forth either that the purpose or purposes for which the district was created have not been achieved and that there is little likelihood that such purpose or purposes will be achieved within the next three (3) years, or that no plan for achieving the purpose or purposes has been prepared and that there is little likelihood that such a plan will be prepared within the next three (3) years, or both, and request a hearing on such application or petition be set. The application must be signed by a majority of members of the board of directors. Said application or petition shall be filed with the clerk of the district court.

If the judge of the district court is satisfied that the application or petition conforms to the provisions of this section, he shall order the clerk of said court to give notice by publication of the pendency of the application or petition, setting the time and place of the hearing thereon. Said notice shall be given in each county affected by the district. The time of hearing shall not be less than sixty (60) days from the date of the first publication. Any person affected by the proposed dissolution of said district who desires to object to the dissolution of said district shall, before the date set for the application to be heard, file his objections and state the reasons why such district should not be dissolved.

Upon said hearing, if the court finds from the evidence presented that the application has been signed by a majority of the members of the board of directors and that the purpose or purposes for which the district was created has not been achieved and that there is little likelihood that such purpose or purposes will be achieved within the next three (3) years, or that no plan for achieving the purpose or purposes has been prepared and that there is little likelihood that such a plan will be prepared within the next three (3) years, or both, the court shall enter an order directing said district to be dissolved and its lands or other property released.

Upon such order, the directors shall immediately notify all persons having claims against the district of such action and shall adjust, settle, and pay all claims, and dispose of all property of the district.

After all the property of the district has been disposed of and all of its obligations have been paid, the directors of the district shall file an affidavit with the clerk of the district court. The affidavit shall state that the district has disposed of its property, has paid all of its obligations and shall describe the lands or property to be released from the district. The court shall then declare said district dissolved and its lands and property released.

The board of directors of the district shall then file a certificate of dissolution in the office of the county clerk of each county in which the district is located. The certificate shall state that the district has disposed of its property, has paid all of its obligations, has been dissolved and shall describe the lands or other property released from the district.