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Civic words Still in use Since 1910

State Trust Land: The School Land Arizona Must Auction, and Scottsdale Bought

About 9.2 million acres of Arizona belong to a trust for its schools, not to the public. The 1910 Enabling Act requires the state to sell or lease that land at public auction to the highest bidder, for no less than its appraised value. Scottsdale's Preserve exists because voters raised the money to win those auctions against developers.

Illustration for State Trust Land: civic words

In one line

State Trust Land: Land the federal government granted Arizona at statehood to earn money for public schools, held in trust and sold or leased only at public auction for at least appraised value. North Scottsdale's empty-looking desert was mostly this, and the Preserve was bought from it.

Also called state land, trust land, State Land Department land, school trust land, Arizona Preserve Initiative, ASLD.

The 30-second version

  • Congress granted Arizona sections 16 and 36 of each township in 1863 and sections 2 and 32 in 1910, about 10.9 million acres total; roughly 9.2 million remain.
  • The trust has 14 beneficiaries, but the Common Schools hold about 87 percent of the land and receive about 90 percent of the revenue.
  • Arizona's constitution, Article 10, says trust land may be sold or leased only to the highest bidder at public auction, after ten weeks of advertising, with few exceptions.
  • Most trust land is still grazed; the valuable acres are the ones growth has reached, including the northern desert Scottsdale annexed in the 1980s.
  • Scottsdale bought much of the McDowell Sonoran Preserve at state auctions, using voter-approved sales taxes and up to $500 million in bonds authorized in 2004.

Shelf

Civic words

Status

Still in use

In official or everyday use today.

On record since

1910

Who said it first

The Enabling Act of June 20, 1910, and Arizona's 1912 constitution, which set the trust terms; the State Land Department followed in 1915

What it means

State Trust Land is the desert that looks like nobody’s and belongs, in effect, to Arizona’s schoolchildren. When Arizona became a state the federal government handed it millions of acres to hold in trust and earn money from, mostly for public schools, and the deal came with a condition that still governs north Scottsdale: the land can be sold or leased only at public auction, to the highest bidder, for no less than its appraised value. The state cannot give it away, cannot set it aside as a park on its own and cannot sell it to a city at a discount because the cause is good.

That rule is why “trust land” in Scottsdale conversation means two things at once. It is the open desert north of Pinnacle Peak, grazed or empty, where a hike needs a state permit. And it is the land the city had to outbid developers for, acre by acre, to assemble the McDowell Sonoran Preserve. The Preserve and the voters guide tells how the money was raised; this page is about the land’s legal status.

Where you’ll meet it

On the blue-and-white State Land Department signs along Dynamite Boulevard and Rio Verde Drive. In any news story that says a parcel in north Scottsdale is “going to auction.” In the Preserve’s acquisition history. And on your property tax bill, indirectly: the trust’s earnings are part of what funds the schools the school districts guide describes.

Where the word came from

The idea is older than the state. When Congress created Arizona Territory in 1863 it reserved sections 16 and 36 of every township “for the benefit of the Common Schools.” The Enabling Act of June 20, 1910, which set the terms for statehood, added sections 2 and 32 and more than two million acres for other institutions, about 10.9 million acres in all. The act also wrote the trust’s rules: named beneficiaries, disposal only at advertised public auction for not less than appraised value, and no departure without Congress. Arizona copied those terms into Article 10 of its 1912 constitution.

A State Land Commission was created in May 1912 and the State Land Department followed in 1915. For most of a century the trust’s business was grazing leases. That changed when Phoenix grew into it: a section of creosote earning a rancher’s rent became worth millions to a homebuilder, and the department’s job turned into deciding which parcels to auction and when. About 1.6 million acres have been sold or exchanged since statehood; roughly 9.2 million remain, 87 percent of them in the Common Schools trust.

Scottsdale met the trust head-on in the 1980s, when it annexed about 80 square miles of northern desert, much of it trust land, and then spent two decades trying to keep a third of the city unbuilt. The Arizona Preserve Initiative, a 1996 state law, let a city petition to have trust parcels reclassified as suitable for conservation. The catch was the constitution: the sale still had to be an auction at appraised value, and anyone could bid. Scottsdale won most of them, with the Preserve taxes and, after 2004, bond money.

What it is not

Trust land is not public land. It is not national forest, where you may walk freely, and not city land until the city has bought it. And “state land” is not the state’s to spend as it likes; it is held for the schools, and a sale below value is a breach of trust.

The fine print

Article 10, Section 3 is specific. Trust land may be sold or leased only “to the highest and best bidder at a public auction” at the county seat, after notice published weekly for at least ten successive weeks in two newspapers. The Legislature may allow leases without auction for grazing, agriculture, commercial and homesite use up to ten years, mineral leases up to twenty, and oil and gas leases with a royalty of at least 12.5 percent. Everything else goes to the block, and because the Enabling Act is federal law, even Arizona’s voters cannot loosen the terms without Congress.

For Scottsdale the effect was a price. The Preserve’s planned boundary of about 36,400 acres, set in 1998, included thousands of acres of trust land, and each auction meant appraised value or more, paid from a dedicated sales tax; the 2004 bond authority of up to $500 million let the city buy before appraisals rose further. Where the city did not bid, the auctions went to developers, which is one reason the gated golf country of the north sits beside protected desert along lines that follow old section grids.

What this site has not pinned down: how many Preserve acres came from the trust rather than private sellers, and what the city paid the schools’ trust in all. Those figures sit in city records not opened here and are left blank rather than guessed. The principle is clear enough: Arizona’s schools were given the desert, and Scottsdale’s voters bought a piece of it back for the mountains.

The lexicon entries this one leans on.

Where you'll meet it on this site

The guides that carry the full story.

State Trust Land by the numbers

About 10.9 million acres

Original grant

About 9.2 million acres

Remaining in trust

About 87%

Share held for K-12 schools

Public auction

Sale or lease method

Questions people actually ask

What is State Trust Land in Arizona?

Land the United States granted Arizona at statehood to be held in trust for public schools and a dozen other institutions. The State Land Department manages about 9.2 million acres and must earn money from it, mostly by leasing it for grazing and selling the parcels that growth has made valuable.

Why does Arizona have to auction trust land?

Because the 1910 Enabling Act and Article 10 of the state constitution say so: trust land may be sold or leased only to the highest and best bidder at public auction, for no less than its appraised value, after ten weeks of published notice. The rule protects the schools' money and makes conservation purchases expensive.

Can I hike on State Trust Land?

Only with a recreation permit from the State Land Department, and only where the land is not leased for something that excludes you. It is not public land in the sense national forest is, and trespass rules apply.

How did Scottsdale buy trust land for the Preserve?

The city asked the state to classify parcels as suitable for conservation under the Arizona Preserve Initiative, then bid for them at auction like anyone else, paying appraised value or more. The 1995 and 2004 Preserve sales taxes and the 2004 bond authority supplied the money.

Where this comes from

The record behind the entry.

Vernacular & LexiconDynamite Boulevard / Rio Verde DriveArizona Territory (and 'Territorial')CreosoteThe Verde RiverSales tax (TPT)Pinnacle Peak

Facts checked: October 2, 2026 • Curated by the Scottsdale.tips editors • Plain-English explainer. Usage changes faster than the record; corrections are welcome.

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