The holders of title to a majority in area of land which is capable of using water beneficially for irrigation, domestic, industrial or municipal purposes and which can be serviced from common sources of supply and by the same system of works, may petition for the formation of a district.
The area need not be contiguous if:
(a) The portions of the proposed district are separated by land under the control of a state hospital, or
(b) The boundary of each of the portions of the proposed districts is within two miles of the boundary of another portion of the proposed district.
When a district is proposed to be formed from noncontiguous areas, the petition shall be signed by the holders of title of a majority of the assessed value of land within each of the noncontiguous areas proposed to be included within the district.