The Arizona Commission of Indian Affairs is the "official link between the tribes and state government" and acts in a liaison capacity as well as providing technical assistance. Critical issues having an impact on the Commission's over-all program, addressed within the Commission's legislative scope and highlighted in this 1978-79 Annual Report are: state-Indian relationships, state taxation programs, Indian school district financing, state-tribal jurisdiction, and recognition of tribal sovereignty. In an effort to improve communication, understanding, and working relationships, the Commission has sponsored six successful Annual Indian Town Hall Conferences; the Town Hall Conference for 1978-79 was on "Reservation School Districts." The Commission received a federal grant from the Four Corners Regional Commission to study "Indian Employment Within State Government," a project affecting some 141,388 Indians, including more than 39,000 urban Indians; a summary of the final report for this project is included. Other activities during the year resulted in the completion of 11 projects, 6 publications, and 16 cooperative efforts for which technical assistance was provided by the Commission's staff. Additional information is provided on Commission membership; the population, acreage, and map location of Arizona Indian reservations; Commission meetings; and the Commission financial report involving total appropriations of $98,000. (NEC)