A.R.S. § 45-158

The approval or rejection of an application for the appropriation of water shall be endorsed on the application, a record of the action kept by the director, and the application returned immediately to the applicant. If approved, the applicant may construct the necessary works, take steps to apply the water to a beneficial use and perfect the appropriation. If the application is rejected, the applicant shall take no steps toward construction of the proposed work or diversion of the water.