MuniYield Arizona (MZA) -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-07083

Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniYield Arizona
Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2009

Date of reporting period: 08/01/2008 – 10/31/2008

Item 1 – Schedule of Investments

BlackRock MuniYield Arizona Fund, Inc.

Schedule of Investments October 31, 2008 (Unaudited)                                                        (Percentages shown are based on Net Assets)

                        Par     
        Municipal Bonds            (000)    Value 
 
 
 
 
 
 
Arizona - 151.2%    Arizona Board of Regents Revenue Bonds (Arizona             
        State University System), Series C, 6%, 7/01/25    $ 620    $ 657,746 
       
 
 
        Arizona Board of Regents Revenue Bonds (Arizona             
        State University System), Series C, 6%, 7/01/26        350    370,762 
       
 
 
 
        Arizona Board of Regents Revenue Bonds (Arizona             
        State University System), Series C, 6%, 7/01/27        425    448,558 
       
 
 
 
        Arizona Board of Regents Revenue Bonds (Arizona             
        State University System), Series C, 6%, 7/01/28        300    315,468 
       
 
 
 
                                                       Arizona Educational Loan Marketing Corporation,
        Educational Loan Revenue Refunding Bonds, AMT,             
        Junior Sub-Series, 6.30%, 12/01/08        1,000    1,001,980 
       
 
 
 
        Arizona Health Facilities Authority Revenue Bonds             
        (Catholic Healthcare West), Series A,             
        6.625%, 7/01/20                1,435    1,546,715 
       
 
 
 
 
 
        Arizona Health Facilities Authority, Revenue             
        Refunding Bonds (Banner Health), Series D,             
        6%, 1/01/30                1,500    1,427,475 
       
 
 
 
 
 
        Arizona Health Facilities Authority, Revenue             
        Refunding Bonds (Banner Health), Series D,             
        5.50%, 1/01/38                1,000    867,540 
       
 
 
 
 
 
        Arizona Student Loan Acquisition Authority, Student             
        Loan Revenue Refunding Bonds, AMT, Junior             
        Subordinated Series B-1, 6.15%, 5/01/29        3,285    2,953,215 
       
 
 
 
        Arizona Student Loan Acquisition Authority, Student             
        Loan Revenue Refunding Bonds, AMT, Senior-Series             
        A-1, 5.90%, 5/01/24            850    764,337 
       
 
 
 
 
        Arizona Tourism and Sports Authority, Tax Revenue             
                                                       Bonds (Baseball Training Facilities Project), 5%,
        7/01/16                1,000    911,020 
       
 
 
 
 
 
                                                       Downtown Phoenix Hotel Corporation, Arizona,
        Revenue Bonds, Senior Series A, 5%, 7/01/36 (a)        1,500    953,655 
       
 
 
 
                                                       Downtown Phoenix Hotel Corporation, Arizona,
        Revenue Bonds, Sub-Series B, 5%, 7/01/36 (a)(b)        1,500    1,065,060 
       
 
 
 
        Gila County, Arizona, Unified School District Number             
                                                       10 (Payson), GO (School Improvement Project of
        2006), Series A, 1%, 7/01/27 (c)        1,000    963,310 
       
 
 
 
        Gilbert, Arizona, Water Resource Municipal Property             
        Corporation, Water System Development Fee and             
                                                       Utility Revenue Bonds, Subordinated Lien, 5%,
        10/01/29 (b)                1,000    927,720 
 
 
 
 
 
 
 
Portfolio Abbreviations                         
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of     
many of the securities have been abbreviated according to the list below.             
AMT    Alternative Minimum Tax (subject to)    IDA    Industrial Development Authority         
COP    Certificates of Participation    S/F    Single-Family             
GO    General Obligation Bonds                     

BlackRock MuniYield Arizona Fund, Inc.             
Schedule of Investments October 31, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
        Par     
                                                                                                   Municipal Bonds        (000)    Value 
 
 
 
                   Gladden Farms Community Facilities District,
                                                                                                   Arizona, GO, 5.50%, 7/15/31        $ 750    $ 533,865 
 
 
 
                                                                                                   Greater Arizona Development Authority,         
                          Infrastructure Revenue Bonds (Santa Cruz County
                                                                                                   Jail), Series 2, 5.25%, 8/01/31        1,000    907,470 
 
 
 
                                                                                                   Greater Arizona Development Authority,         
                                                                                                   Infrastructure Revenue Bonds, Series B,         
                                                                                                   5%, 8/01/30 (b)        2,000    1,859,500 
 
 
 
                        Maricopa County and Phoenix, Arizona, IDA, S/F
                                                                                                   Mortgage Revenue Refunding Bonds, AMT, Series A-1,         
                                                                                                   5.75%, 5/01/40 (d)(e)(f)        1,445    1,295,385 
 
 
 
                                                                                                   Maricopa County, Arizona, IDA, Education Revenue         
                                                                                                   Bonds (Arizona Charter Schools Project 1), Series A,         
                                                                                                   6.625%, 7/01/20        900    733,104 
 
 
 
                        Maricopa County, Arizona, IDA, Health Facilities
                                                                                                   Revenue Refunding Bonds (Catholic Healthcare West         
                                                                                                   Project), Series A, 5.50%, 7/01/26    1,850    1,599,547 
 
 
                        Maricopa County, Arizona, IDA, Hospital Facility
                                                                                                   Revenue Refunding Bonds (Samaritan Health         
                                                                                                   Services), Series A, 7%, 12/01/16 (b)(g)    2,400    2,807,784 
 
 
                                                                                                   Maricopa County, Arizona, IDA, S/F Mortgage Revenue         
                                                                                                   Bonds, AMT, Series 3-B, 5.25%,             
                                                                                                   8/01/38 (d)(e)(f)        1,845    1,548,487 
 
 
 
                                                                                                   Maricopa County, Arizona, School District Number 3,         
                                                                                                   GO, Refunding (Tempe Elementary), 7.50%,         
                                                                                                   7/01/10 (a)(b)        500    537,225 
 
 
 
                                                                                                   Maricopa County, Arizona, School District Number         
                                                                                                   11, GO (Peoria Unified), Second Series, 5%,         
                                                                                                   7/01/25 (a)(b)        1,000    955,270 
 
 
 
                                                                                                   Maricopa County, Arizona, School District Number         
                                                                                                   89, School Improvement, GO (Dysart Unified), Series         
                                                                                                   C, 6%, 7/01/28        1,000    1,003,540 
 
 
 
                                                                                                   Maricopa County, Arizona, School District Number         
                     90, School Improvement, GO (Saddle Mountain
                                                                                                   Unified), Series A, 5%, 7/01/14        1,000    993,610 
 
 
 
                                                                                                   McAllister Academic Village, LLC, Arizona, Revenue         
                                                                                                   Refunding Bonds (Arizona State University Project),         
                                                                                                   5.25%, 7/01/39 (h)        500    455,445 
 
 
 
                                                                                                   Mesa, Arizona, IDA Revenue Bonds (Discovery Health         
                                                                                                   Systems), Series A, 5.625%, 1/01/10 (b)(i)    1,000    1,044,200 
 
 
                                                                                                   Phoenix and Pima County, Arizona, IDA, S/F         
                                                                                                   Mortgage Revenue Bonds, AMT, Series 1A,         
                                                                                                   5.65%, 7/01/39 (e)(f)        908    843,274 
 
 
 
                                                                                                   Phoenix and Pima County, Arizona, IDA, S/F         
                         Mortgage Revenue Refunding Bonds, AMT, Series
                                                                                                   2007-1, 5.25%, 8/01/38 (d)(e)(f)    1,888    1,633,329 
 
 

2

BlackRock MuniYield Arizona Fund, Inc.             
Schedule of Investments October 31, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
        Par     
                                                                                                   Municipal Bonds        (000)    Value 
 
 
 
                                                                                                   Phoenix, Arizona, Civic Improvement Corporation,         
                          Excise Tax Revenue Bonds (Civic Plaza Expansion
                                                                                                   Project), Sub-Series A, 5%, 7/01/35 (a)(b)    $ 3,325    $ 2,982,525 
 
 
                                                                                                   Phoenix, Arizona, Civic Improvement Corporation,         
                                                                                                   Senior Lien Airport Revenue Bonds, AMT, Series A,         
                                                                                                   5%, 7/01/33        1,000    905,360 
 
 
 
                                                                                                   Phoenix, Arizona, Civic Improvement Corporation,         
                                                                                                   Senior Lien Airport Revenue Bonds, AMT, Series B,         
                                                                                                   5.25%, 7/01/32 (a)(b)        600    466,782 
 
 
 
                                                                                                   Phoenix, Arizona, Civic Improvement Corporation,         
                      Wastewater System Revenue Refunding Bonds,
                                                                                                   Senior Lien, 5.50%, 7/01/22        2,000    2,058,760 
 
 
 
                                                                                                   Phoenix, Arizona, Civic Improvement Corporation,         
                       Water System Revenue Refunding Bonds, Junior
                                                                                                   Lien, 5.50%, 7/01/20 (a)(b)        2,500    2,545,400 
 
 
 
                                                                                                   Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds,         
                                                                                                   AMT, Series 2007-2, 5.50%,             
                                                                                                   8/01/38 (d)(e)(f)        1,899    1,812,234 
 
 
 
                                                                                                   Pima County, Arizona, IDA, Education Revenue Bonds         
                                                                                                   (American Charter Schools Foundation), Series A,         
                                                                                                   5.625%, 7/01/38        500    351,580 
 
 
 
                                                                                                   Pima County, Arizona, IDA, Education Revenue Bonds         
                                                                                                   (Arizona Charter Schools Project), Series C, 6.70%,         
                                                                                                   7/01/21        735    656,134 
 
 
 
                                                                                                   Pima County, Arizona, IDA, Education Revenue Bonds         
                                                                                                   (Arizona Charter Schools Project), Series C, 6.75%,         
                                                                                                   7/01/31        985    811,512 
 
 
 
                      Pima County, Arizona, IDA, Education Revenue
                                                                                                   Refunding Bonds (Arizona Charter Schools Project II),         
                                                                                                   Series A, 6.75%, 7/01/21        575    515,597 
 
 
 
                      Pima County, Arizona, IDA, Education Revenue
                                                                                                   Refunding Bonds (Arizona Charter Schools Project),         
                                                                                                   Series O, 5%, 7/01/26        1,000    691,830 
 
 
 
                    Pima County, Arizona, Unified School District
                                                                                                   Number 1 (Tucson), GO, Refunding, 7.50%,         
                                                                                                   7/01/09 (a)(b)        3,050    3,158,366 
 
 
 
                                                                                                   Pinal County, Arizona, COP, 5%, 12/01/26    1,250    1,082,087 
 
 
                                                                                                   Pinal County, Arizona, COP, 5%, 12/01/29    1,250    1,057,887 
 
 
                         Pinal County, Arizona, IDA, Wastewater Revenue
                                                                                                   Bonds (San Manuel Facilities Project), AMT,         
                                                                                                   6.25%, 6/01/26        500    395,930 
 
 
 
                        Queen Creek Improvement District Number 001,
                                                                                                   Arizona, Special Assessment Bonds, 5%, 1/01/32    2,000    1,432,040 
 
 
                                                                                                   Salt River Project, Arizona, Agriculture Improvement         
                                                                                                   and Power District, Electric System Revenue Bonds,         
                                                                                                   Series A, 5%, 1/01/24        1,000    998,880 
 
 
 

3

 

BlackRock MuniYield Arizona Fund, Inc.

Schedule of Investments October 31, 2008 (Unaudited)             (Percentages shown are based on Net Assets)

                                                                                                                                      Par
Municipal Bonds                                                                                                           (000)              Value

    Salt River Project, Arizona, Agriculture Improvement         
    and Power District, Electric System Revenue         
    Refunding Bonds, Series A, 5%, 1/01/35    $ 1,500    $ 1,394,535 
   
 
 
                                           Salt Verde Financial Corporation, Arizona, Senior
    Gas Revenue Bonds, 5%, 12/01/37    2,750    1,655,528 
   
 
 
    Scottsdale, Arizona, IDA, Hospital Revenue Bonds         
    (Scottsdale Healthcare), 5.80%, 12/01/11 (i)    2,250    2,439,203 
   
 
 
    Scottsdale, Arizona, IDA, Hospital Revenue         
    Refunding Bonds (Scottsdale Healthcare), Series A,         
    5.25%, 9/01/30    1,000    798,010 
   
 
 
    Surprise Municipal Property Corporation, Arizona,         
                                           Wastewater Development Impact Fee Revenue
    Bonds, 4.90%, 4/01/32    1,500    1,051,155 
   
 
 
    Tucson and Pima County, Arizona, IDA, S/F Mortgage         
                                          Revenue Refunding Bonds, AMT, Series B, 5.35%,
    6/01/47 (d)(e)(f)    1,000    808,440 
   
 
 
    Tucson, Arizona, IDA, Joint S/F Mortgage         
    Revenue Refunding Bonds, AMT,         
    Series A-1, 5.10%, 7/01/38 (d)(e)(f)    995    852,675 
   
 
 
    Tucson, Arizona, IDA, Senior Living Facilities         
    Revenue Bonds (Christian Care Tucson Inc. Project),         
    Series A, 6.125%, 7/01/10 (i)(j)    1,000    1,071,100 
   
 
 
                                           University of Arizona, COP, Refunding, Series A,
    5.125%, 6/01/29 (c)    1,105    1,051,783 
   
 
 
    University of Arizona, COP, Series B, 5%,         
    6/01/28 (c)    1,900    1,802,150 
   
 
 
    Vistancia Community Facilities District, Arizona, GO,         
    6.75%, 7/15/22    1,275    1,205,232 
   
 
 
    Vistancia Community Facilities District, Arizona, GO,         
    5.75%, 7/15/24    750    631,185 
   
 
 
                                           Yavapai County, Arizona, IDA, Hospital Facility
    Revenue Bonds (Yavapai Regional Medical Center),         
    Series A, 6%, 8/01/33    1,900    1,613,043 
   
 
 
    Yavapai County, Arizona, IDA, Solid Waste Disposal         
    Revenue Bonds (Waste Management Inc. Project),         
    AMT, Series A-1, 4.90%, 3/01/28    1,000    626,990 
   
 
 
                                           Yuma County, Arizona, Library District, GO, 5%,
    7/01/26 (k)    1,675    1,554,182 
           
            74,403,711 
 
 
 
Guam - 1.5%    Guam Government Waterworks Authority, Water and         
                                           Wastewater System, Revenue Refunding Bonds,
    5.875%, 7/01/35    1,000    740,430 
 
 
 
Puerto Rico - 22.2%    Puerto Rico Commonwealth Aqueduct and Sewer         
    Authority, Senior Lien Revenue Bonds, Series A, 6%,         
    7/01/44 (j)    2,180    1,938,194 
   
 
 
    Puerto Rico Commonwealth Highway and         
    Transportation Authority, Highway Revenue         
    Refunding Bonds, Series CC, 5.50%, 7/01/31    1,000    891,910 
   
 
 

4

BlackRock MuniYield Arizona Fund, Inc.             
Schedule of Investments October 31, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
           Par     
                                                                                                   Municipal Bonds        (000)         Value 
 
 
 
                     Puerto Rico Commonwealth, GO, Series A, 6%,
                                                                                                   7/01/38        $ 1,000    $ 930,790 
 
 
 
                                                                                                   Puerto Rico Commonwealth, Public Improvement,         
                                                                                                   GO, Series A, 5.125%, 7/01/31        750    629,272 
 
 
 
                                                                                                   Puerto Rico Electric Power Authority, Power         
                                                                                                   Revenue Bonds, Series TT, 5%, 7/01/37    1,000    800,570 
 
 
                                                                                                   Puerto Rico Electric Power Authority, Power         
                                                                                                   Revenue Bonds, Series WW, 5.375%, 7/01/24    1,000    918,910 
 
 
                                                                                                   Puerto Rico Industrial, Tourist, Educational, Medical         
                                                                                                   and Environmental Control Facilities Revenue Bonds         
                        (Cogeneration Facility-AES Puerto Rico Project),
                                                                                                   AMT, 6.625%, 6/01/26        1,500    1,336,815 
 
 
 
                                                                                                   Puerto Rico Public Buildings Authority, Government         
                                                                                                   Facilities Revenue Bonds, Series I, 5.25%,         
                                                                                                   7/01/14 (i)(l)        35    37,252 
 
 
 
                                                                                                   Puerto Rico Public Buildings Authority, Government         
                                                                                                   Facilities Revenue Bonds, Series I, 5.25%,         
                                                                                                   7/01/33 (l)        1,965    1,645,982 
 
 
 
                                                                                                   Puerto Rico Public Buildings Authority, Government         
                                                                                                   Facilities Revenue Refunding Bonds, Series M-3, 6%,         
                                                                                                   7/01/28 (b)(l)        900    873,648 
 
 
 
                                                                                                   Puerto Rico Public Buildings Authority, Government         
                                                                                                   Facilities Revenue Refunding Bonds, Series N, 5.50%,         
                                                                                                   7/01/27 (l)        1,000    920,010 
           
            10,923,353 
                                                                                                   Total Long-Term Investments             
                                                                                                   (Cost - $97,132,794) - 174.9%        86,067,494 
 
 
                                                                                                   Short-Term Securities        Shares     
                                                                                                   CMA Arizona Municipal Money Fund, 1.06% (m)(n)    5,876,782    5,876,782 
 
 
                                                                                                   Total Short-Term Securities             
                                                                                                   (Cost - $5,876,782) - 12.0%            5,876,782 
                                                                                                   Total Investments (Cost - $103,009,576*) - 186.9%        91,944,276 
                                                                                                   Liabilities in Excess of Other Assets - (4.9)%        (2,421,449) 
                                                                                                   Preferred Shares, at Redemption Value - (82.0)%        (40,322,021) 
                                                                                                   Net Assets Applicable to Common Shares - 100.0%    $ 49,200,806 
   

* The cost and unrealized appreciation (depreciation) of investments as of October 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 103,110,884 
   
Gross unrealized appreciation    $ 829,773 
Gross unrealized depreciation                 (11,996,381) 
   
Net unrealized depreciation    $ (11,166,608) 
   

(a)      FGIC Insured.
 
(b)      MBIA Insured.
 
(c)      AMBAC Insured.
 
(d)      FHLMC Collateralized.
 
(e)      FNMA Collateralized.
 
(f)      GNMA Collateralized.
 
(g)      Security is collateralized by Municipal or U.S. Treasury Obligations.
 

5

BlackRock MuniYield Arizona Fund, Inc.

Schedule of Investments October 31, 2008 (Unaudited)

(h)      Assured Guaranty Insured.
 
(i)      U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.
 
(j)      Radian Insured.
 
(k)      XL Capital Insured.
 
(l)      Commonwealth Guaranteed.
 
(m)      Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
 
    Net     
Affiliate    Activity    Income 
 
 
CMA Arizona Municipal         
   Money Fund         2,703,436    $ 12,165 
 
 

(n) Represents the current yield as of report date.

  		•  Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:
     
     
  		• Level 1 - price quotations in active markets/exchanges for identical securities
     
     
  		• Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)
     
     
  		• Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund's own assumption used in determining the fair value of investments)
     
      The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent financial statements as contained in its annual report.
     

    The following table summarizes the inputs used as of October 31, 2008 in determining the fair valuation of the Fund's investments:

    Valuation Investments in

        Inputs    Securities 
    Level 1        - 
    Level 2        $ 91,944,276 
    Level 3        - 
    Total        $ 91,944,276 

    6

    Item 2 – Controls and Procedures

    2(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions
    have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under
    the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90
    days of the filing of this report based on the evaluation of these controls and procedures required by Rule
    30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

    2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-
    3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially
    affected, or are reasonably likely to materially affect, the registrant’s internal control over financial
    reporting.

    Item 3 – Exhibits

    Certifications – Attached hereto

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of
    1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
    authorized.

    BlackRock MuniYield Arizona Fund, Inc.

    By: /s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer of
    BlackRock MuniYield Arizona Fund, Inc.

    Date: December 19, 2008

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of
    1940, this report has been signed below by the following persons on behalf of the registrant and in the
    capacities and on the dates indicated.

    By: /s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Arizona Fund, Inc.

    Date: December 19, 2008

    By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Arizona Fund, Inc.

    Date: December 19, 2008