A special district is a quasi-municipal corporation and political subdivision of the State of Colorado. Special districts are formed to provide necessary public services that the county or municipality cannot otherwise provide. Special districts formation and operation is governed by Title 32 of the Colorado Revised Statutes and other applicable laws. It is essentially a tax-exempt financing mechanism used for the installation, operation and maintenance of public infrastructure.
You can learn more about special districts by going to Colorado Department of Local Affairs.