A consumers power district may be composed of the territory of one or more municipalities or rural areas as defined in this chapter, whether contiguous or otherwise, but no municipality or voting precinct shall be divided in the formation of a district. Nothing in chapters 49-35 to 49-40, inclusive, shall be construed to prevent the organization of a district within, or partly within, the territorial boundaries of another district organized hereunder, so long as the plants and systems and the operation of the same, the exercise of powers, and the assumption of duties and responsibilities, of or on the part of one such district, do not nullify, substantially conflict with, or materially affect those of, or on the part of, another such district.

Source: SL 1950 (SS), ch 17, § 4; SDC Supp 1960, § 52.1704.