(1) At any time after the organization of a water district, and after approval by the Public Service Commission in a proceeding similar to that provided by KRS 74.012, more than fifty percent (50%) of the freeholders within the district may file a petition with the county judge/executive who had jurisdiction over the organization of the district requesting discontinuance of the water district. The petition shall state the reasons for discontinuance and that all obligations of the district have been met and that approval of the Public Service Commission has been obtained.
(2) After giving notice as provided in KRS Chapter 424 the county judge/executive may conduct such hearings on the petition as may be necessary to assist in making a determination.
(3) If, after hearings on the petition for discontinuance of the district the county judge/executive determines that a discontinuance is in the best interest of the residents of the district, the water district shall be dissolved by order of the county judge/executive and a copy of the order shall be forwarded to the Public Service Commission.