N.M. Stat. § 73-10-23
It is lawful for any irrigation district or districts organized under the laws of the state of New Mexico to unite with any irrigation district or districts of an adjoining state or states in the purchase, acquisition or construction, and in the annual cost of operation and maintenance, of a system of irrigation and drainage works for the irrigation of the land and maintaining the irrigability of the land within the said respective irrigation districts, and may also unite in the purchase, acquisition or construction, and in the annual operation and maintenance of hydroelectric power plants, transmission lines, etc., for the sale and distribution of electric power, and in such case, or cases, said irrigation districts are hereby jointly granted the same power of condemnation as is now possessed by each district under the laws of the state in which organized, and the cost of purchase, acquisition or construction, together with the annual cost of operation and maintenance of such irrigation, drainage system or power plants, shall be apportioned to each district in proportion to the irrigable acreage therein for which water shall be provided. Such joint works shall be owned jointly in proportion to such respective acreages, provided that the lands lying in the two or more said irrigation districts so united shall receive water from a common source; and provided, also, that such irrigation district or districts of such other adjoining state or states shall be duly organized under the laws of that state and for purposes the same or similar as the district or districts in this state desirous so to unite. Whenever it is deemed advisable and agreed to between such districts, lying in the same or adjoining states, that for the construction, acquisition or purchase of irrigation works for hydroelectric power plants, etc., it is necessary to issue bonds, it shall be lawful for such districts to issue bonds in proportion to their respective acreage, and such districts may be made jointly or severally liable for the repayment of such bonds. The terms and conditions of such joint ownership, operation and maintenance of issuance of bonds, as the case may be, shall be set out in a written contract. Any such contract shall not be binding until the same shall have been ratified by the electors of each of such districts in the manner provided by law for a bond issue by such districts respectively. An election shall be held in each such district to determine whether such contract shall be adopted. Such contract shall be printed, or in writing, and a true copy shall be filed in the office of each district fifteen days prior to such election, and be subject to public inspection, and one true copy shall be furnished each voter calling at such office for the same at any time fifteen days prior to such election. When such works are to be constructed by two or more districts, bids may be jointly called for and may be opened and considered at the designated office of either of such districts, and such districts shall approve the letting of the contract, and the contractor's bond, and may meet for that purpose at a place outside of their district, or at any office established for such joint project and at which all business of such joint project may be transacted. All bids, bonds, contracts, etc., of such joint project may be in the names of such joint project districts, and such districts, being empowered and authorized to do all acts by joint action that one district may do, the action of each district being determined by its board of directors. A general manager may be employed for such joint enterprise whose duties may be set forth in the joint ownership contract. Such contracts may be amended in the same manner.
NMS § 73-10-23