The land area embraced in such districts must be contiguous and must lie within a well defined watershed. The area shall not include lands located within the boundary of any incorporated city or town or lands not included within a soil and water conservation district, unless such lands are brought in the boundaries of a soil and water conservation district through the process of petition, hearing, and referendum as prescribed in KRS 262.100, 262.110, and 262.120. The area shall not include lands embraced within another watershed conservancy district, but may include lands lying in one or more soil and water conservation districts.
KRS 262.705