1.  The board shall create a district for remediation of the quality of water if the county or district health officer or the Administrator of the Division certifies in writing to the board that a condition exists in an area of the region which is affecting or will affect the quality of water that is available for municipal, industrial or domestic use within the region.

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2.  Upon receipt of the certificate, the board shall proceed, in cooperation with the health officer and the Division, to verify the existence and extent of the condition and establish the appropriate boundaries of the district. Money expended by the board for this purpose may be recovered, after the district is established, from the proceeds of bonds issued pursuant to NRS 540A.267 or from a fee or tax imposed pursuant to NRS 540A.265.

3.  The district created pursuant to this section must include:

(a) The area where the condition which requires remediation is determined by the board to be present or for which remediation is determined by the board to be necessary, including any area to which the condition is expected to migrate unless remediation is carried out; and

(b) If the board determines that the condition which requires remediation affects the quantity or quality of drinking water within the region, the wholesale and retail service area of any provider of water that has used or uses for any portion of its supply wells located in the area described in paragraph (a).