Form N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-7278         

        Nuveen Arizona Premium Income Municipal Fund, Inc.         
(Exact name of registrant as specified in charter)

Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)


Kevin J. McCarthy Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)

Registrant's telephone number, including area code:         312-917-7700        

Date of fiscal year end:            7/31          

Date of reporting period:         10/31/08         

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

    Portfolio of Investments (Unaudited)             
    Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)             
    October 31, 2008             
Principal        Optional Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Consumer Staples – 1.3% (0.9% of Total Investments)             
$           835    Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds,    5/12 at 100.00    BBB   $   629,715 
     Series 2002, 5.375%, 5/15/33             
    Education and Civic Organizations – 12.0% (7.7% of Total Investments)             
2,500    Arizona Higher Education Loan Authority, Student Loan Revenue Bonds, Series 2007B, Adjustable    3/09 at 100.00    AAA    1,696,869 
     Rate, 2.295%, 11/01/41 (4)             
1,000    Arizona State University, System Revenue Bonds, Series 2002, 5.000%, 7/01/25 – FGIC Insured    7/12 at 100.00    AA    977,810 
    Arizona State University, System Revenue Bonds, Series 2005:             
1,455     5.000%, 7/01/20 – AMBAC Insured    7/15 at 100.00    AA    1,422,219 
750     5.000%, 7/01/21 – AMBAC Insured    7/15 at 100.00    AA    725,348 
1,500    Tempe Industrial Development Authority, Arizona, Lease Revenue Bonds, Arizona State University    7/13 at 100.00    AA    1,250,025 
     Foundation Project, Series 2003, 5.000%, 7/01/34 – AMBAC Insured             
7,205    Total Education and Civic Organizations            6,072,271 
    Health Care – 23.5% (15.1% of Total Investments)             
1,430    Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series    1/17 at 100.00    AA–    1,265,593 
     2007A, 5.000%, 1/01/25             
885    Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series    1/17 at 100.00    AA–    429,225 
     2007B, 3.411%, 1/02/37             
3,470    Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series    1/18 at 100.00    AA–    3,030,629 
     2008D, 5.500%, 1/01/38             
675    Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health    12/15 at 100.00    BBB    463,982 
     Network, Series 2005B, 5.000%, 12/01/37             
1,110    Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health    12/17 at 100.00    BBB    742,146 
     Network, Series 2007, 5.000%, 12/01/42             
2,150    Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds,    7/14 at 100.00    A    1,896,408 
     Catholic Healthcare West, Series 2004A, 5.375%, 7/01/23             
2,800    Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds,    7/17 at 100.00    A    2,284,156 
     Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32             
385    Maricopa County, Arizona, Hospital Revenue Bonds, Sun Health Corporation, Series 2005,    4/15 at 100.00    BBB    411,754 
     5.000%, 4/01/16             
515    Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities    11/10 at 101.00    Aa1    540,204 
     Financing Authority, Hospital Revenue Bonds, Hospital de la Concepcion, Series 2000A,             
     6.375%, 11/15/15             
1,055    Winslow Industrial Development Authority, Arizona, Hospital Revenue Bonds, Winslow Memorial    12/08 at 101.00    N/R    802,053 
     Hospital, Series 1998, 5.500%, 6/01/22             
14,475    Total Health Care            11,866,150 
    Housing/Multifamily – 1.4% (0.9% of Total Investments)             
400    Phoenix Industrial Development Authority, Arizona, GNMA Collateralized Multifamily Housing    6/11 at 102.00    Aaa    342,132 
     Revenue Bonds, Campaigne Place on Jackson, Series 2001, 5.700%, 6/20/31 (Alternative             
     Minimum Tax)             
530    Phoenix Industrial Development Authority, Arizona, GNMA Collateralized Multifamily Housing    4/15 at 100.00    Aaa    384,669 
     Revenue Bonds, Park Lee Apartments, Series 2004A, 5.050%, 10/20/44 (Alternative Minimum Tax)             
930    Total Housing/Multifamily            726,801 
    Housing/Single Family – 9.5% (6.1% of Total Investments)             
945    Phoenix and Pima County Industrial Development Authority, Arizona, Single Family Mortgage    7/17 at 103.00    Aaa    875,911 
     Revenue Bonds, Series 2007-4, 5.800%, 12/01/39 (Alternative Minimum Tax)             
1,685    The Industrial Development Authority of The City of Tucson, Arizona, Tax-Exempt Single Family    1/17 at 103.00    Aaa    1,452,217 
     Mortgage Revenue Bonds, Series 2007A-1, 5.100%, 7/01/38             
3,010    Tucson and Pima County Industrial Development Authority, Arizona, Joint Single Family Mortgage    6/17 at 101.00    Aaa    2,447,190 
     Revenue Bonds, Series 2007B, 5.350%, 6/01/47 (Alternative Minimum Tax)             
5,640    Total Housing/Single Family            4,775,318 
    Tax Obligation/General – 11.3% (7.3% of Total Investments)             
1,265    Gila County Unified School District 10 Payson, Arizona, School Improvement Bonds, Project    7/18 at 100.00    A2    1,037,604 
     2006, Series 2008B, 3.000%, 7/01/28             
1,200    Maricopa County Unified School District 95 Queen Creek, Arizona, General Obligation Bonds,    7/18 at 100.00    Aaa    1,139,844 
     Series 2008, 5.000%, 7/01/27 – FSA Insured             
3,530    Pinal County Unified School District 1, Florence, Arizona, General Obligation Bonds, Series    7/18 at 100.00    A–    3,260,872 
     2008C, 5.250%, 7/01/28             
330    Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A, 5.375%, 7/01/28    7/11 at 100.00    BBB–    294,119 
6,325    Total Tax Obligation/General            5,732,439 
    Tax Obligation/Limited – 36.1% (23.2% of Total Investments)             
775    Bullhead City, Arizona, Special Assessment Bonds, Parkway District Improvements, Series 1993,    No Opt. Call    Baa2    776,279 
     6.100%, 1/01/09             
422    Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment    7/10 at 102.00    N/R    408,952 
     Lien Bonds, Series 2001A, 7.875%, 7/01/25             
3,000    Glendale Western Loop 101 Public Facilities Corporation, Arizona, Third Lien Excise Tax    1/14 at 100.00    AA    3,018,720 
     Revenue Bonds, Series 2008B, 6.250%, 7/01/38             
1,280    Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006-1, 5.000%,    8/16 at 100.00    AA    1,252,506 
     8/01/22 – MBIA Insured             
740    Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006A, 5.000%,    8/16 at 100.00    AA    724,083 
     8/01/23 – MBIA Insured             
575    Marana Municipal Property Corporation, Arizona, Revenue Bonds, Series 2003, 5.000%, 7/01/28 –    7/13 at 100.00    AA    547,969 
     AMBAC Insured             
1,110    Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006,    7/16 at 100.00    Baa1    811,843 
     4.600%, 1/01/26             
3,400    Maricopa County Stadium District, Arizona, Revenue Refunding Bonds, Series 2002, 5.375%,    6/12 at 100.00    Aa3    3,443,417 
     6/01/18 – AMBAC Insured             
3,400    Mesa, Arizona, Street and Highway User Tax Revenue Bonds, Series 2005, 5.000%, 7/01/24 –    7/15 at 100.00    AAA    3,348,965 
     FSA Insured             
1,200    Prescott Valley Municipal Property Corporation, Arizona, Municipal Facilities Revenue Bonds,    1/13 at 100.00    AA–    1,136,808 
     Series 2003, 5.000%, 1/01/27 – FGIC Insured             
265    Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding    7/12 at 100.00    BBB–    238,156 
     Bonds, Series 2002D, 5.125%, 7/01/24             
1,610    San Luis Civic Improvement Corporation, Arizona, Municipal Facilities Excise Tax Revenue    7/15 at 100.00    A–    1,468,626 
     Bonds, Series 2005, 5.000%, 7/01/25 – SYNCORA GTY Insured             
500    Tucson, Arizona, Certificates of Participation, Series 2000, 5.700%, 7/01/20 – MBIA Insured    1/09 at 100.00    AA    501,615 
645    Vistancia Community Facilities District, Arizona, Restricted General Obligation Bonds, Series    7/15 at 100.00    Baa1    545,980 
     2005, 5.750%, 7/15/24             
18,922    Total Tax Obligation/Limited            18,223,919 
    U.S. Guaranteed – 26.8% (17.3% of Total Investments) (5)             
800    Arizona Health Facilities Authority, Hospital Revenue Bonds, Catholic Healthcare West, Series    7/10 at 101.00    A (5)    862,760 
     1999A, 6.625%, 7/01/20 (Pre-refunded 7/01/10)             
1,000    Arizona Health Facilities Authority, Hospital System Revenue Bonds, John C. Lincoln Health    12/10 at 102.00    BBB (5)    1,103,500 
     Network, Series 2000, 7.000%, 12/01/25 (Pre-refunded 12/01/10)             
1,250    Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University,    5/11 at 101.00    AAA    1,347,875 
     Series 2001A, 5.875%, 5/15/31 (Pre-refunded 5/15/11)             
1,250    Maricopa County Industrial Development Authority, Arizona, Hospital Revenue Refunding Bonds,    No Opt. Call    AA (5)    1,465,200 
     Samaritan Health Services, Series 1990A, 7.000%, 12/01/16 – MBIA Insured (ETM)             
3,000    Mesa Industrial Development Authority, Arizona, Revenue Bonds, Discovery Health System, Series    1/10 at 101.00    AA (5)    3,148,109 
     1999A, 5.750%, 1/01/25 (Pre-refunded 1/01/10) – MBIA Insured             
2,000    Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds,    7/10 at 101.00    AA+ (5)    2,136,600 
     Series 2000, 6.000%, 7/01/24 (Pre-refunded 7/01/10) – FGIC Insured             
1,000    Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B, 6.500%,    7/10 at 101.00    BBB+ (5)    1,073,000 
     7/01/27 (Pre-refunded 7/01/10)             
735    Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding    7/12 at 100.00    Baa3 (5)    779,497 
     Bonds, Series 2002D, 5.125%, 7/01/24 (Pre-refunded 7/01/12)             
1,500    Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale    12/11 at 101.00    BBB+ (5)    1,627,755 
     Healthcare, Series 2001, 5.800%, 12/01/31 (Pre-refunded 12/01/11)             
12,535    Total U.S. Guaranteed            13,544,296 
    Utilities – 14.8% (9.5% of Total Investments)             
1,000    Arizona Power Authority, Special Obligation Power Resource Revenue Refunding Crossover Bonds,    No Opt. Call    AA    1,074,220 
     Hoover Project, Series 2001, 5.250%, 10/01/15             
465    Pima County Industrial Development Authority, Arizona, Lease Obligation Revenue Refunding    1/09 at 100.00    Aaa    467,320 
     Bonds, Tucson Electric Power Company, Series 1988A, 7.250%, 7/15/10 – FSA Insured             
2,170    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/27 –    7/15 at 100.00    A3    1,884,168 
     SYNCORA GTY Insured             
530    Salt River Project Agricultural Improvement and Power District, Arizona, Electric System    1/13 at 100.00    Aa1    529,963 
     Revenue Bonds, Series 2002B, 5.000%, 1/01/22             
2,000    Salt River Project Agricultural Improvement and Power District, Arizona, Electric System    1/12 at 101.00    Aa1    1,954,780 
     Revenue Refunding Bonds, Series 2002A, 5.125%, 1/01/27             
    Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Drivers Trust 2267, Series 2007:             
2,330     8.694%, 12/01/29 (IF)    No Opt. Call    AA–    957,395 
1,770     8.118%, 12/01/37 (IF)    No Opt. Call    AA–    599,145 
10,265    Total Utilities            7,466,991 
    Water and Sewer – 18.7% (12.0% of Total Investments)             
1,005    Cottonwood, Arizona, Senior Lien Water System Revenue Bonds, Municipal Property Corporation,    7/14 at 100.00    BBB    911,354 
     Series 2004, 5.000%, 7/01/24 – SYNCORA GTY Insured             
3,500    Glendale, Arizona, Water and Sewer Revenue Bonds, Subordinate Lien, Series 2003, 5.000%,    7/13 at 100.00    AA    3,295,039 
     7/01/28 – AMBAC Insured             
600    Oro Valley Municipal Property Corporation, Arizona, Senior Lien Water Revenue Bonds, Series    7/13 at 100.00    AA    581,166 
     2003, 5.000%, 7/01/23 – MBIA Insured             
1,000    Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds,    7/14 at 100.00    AA+    980,770 
     Series 2004, 5.000%, 7/01/24 – MBIA Insured             
1,500    Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series    7/12 at 100.00    AA    1,432,125 
     2002, 5.000%, 7/01/26 – FGIC Insured             
1,250    Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Refunding    No Opt. Call    AA    1,293,775 
     Bonds, Series 2001, 5.500%, 7/01/21 – FGIC Insured             
    Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007:             
600     4.700%, 4/01/22    4/14 at 100.00    N/R    465,774 
695     4.900%, 4/01/32    4/17 at 100.00    N/R    490,510 
10,150    Total Water and Sewer            9,450,513 
$    87,282    Total Investments (cost $87,374,220) – 155.4%            78,488,413 
    Other Assets Less Liabilities – 4.0%            2,027,912 
    Preferred Shares, at Liquidation Value – (59.4)% (6)            (30,000,000)
    Net Assets Applicable to Common Shares – 100%          $  50,516,325 

(1)    All percentages shown in the Portfolio of Investments are based on net assets applicable to Common 
    shares unless otherwise noted. 
(2)    Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
    There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
    may be subject to periodic principal paydowns. 
(3)    Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, 
    Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be 
    below investment grade. 
    The Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, 
    FGIC, FSA, MBIA, RAAI and SYNCORA as of October 31, 2008. Subsequent of October 31, 2008, and during 
    the period this Portfolio of Investments was prepared, there may have been reductions to the ratings of 
    certain bonds resulting from changes to the ratings of the underlying insurers both during the period and 
    after period end. Such reductions would likely reduce the effective rating of many of the bonds insured by 
    the insurer or insurers presented at period end. 
(4)    Investment valued at fair value using methods determined in good faith by, or at the discretion of, the 
    Board of Directors. 
(5)    Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities 
    which ensure the timely payment of principal and interest. Such investments are normally considered to 
    be equivalent to AAA rated securities. 
(6)    Preferred Shares, at Liquidation Value as a percentage of Total Investments is 38.2%. 
N/R    Not rated. 
(ETM)    Escrowed to maturity. 
(IF)    Inverse floating rate investment. 

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No.157) "Fair Value Measurements." SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund's investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities. 
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, 
              prepayment speeds, credit risk, etc.). 
Level 3 – Significant unobservable inputs (including management's assumptions in determining the fair 
              value of investments). 

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the Fund's fair value measurements as of October 31, 2008:

    Level 1    Level 2    Level 3    Total 
Investments    $ —    $76,791,544    $1,696,869    $78,488,413 

The following is a reconciliation of the Fund's Level 3 investments held at the beginning and end of the measurement period:

    Level 3 
    Investments 
Balance as of July 31, 2008    $1,278,800 
 Gains (losses):     
     Net realized gains (losses)    — 
     Net change in unrealized appreciation (depreciation)    418,069 
 Net purchases at cost (sales at proceeds)    — 
 Net discounts (premiums)    — 
 Net transfers in to (out of) at end of period fair value    — 
Balance as of October 31, 2008    $1,696,869 

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At October 31, 2008, the cost of investments was $87,340,709.

Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 2008, were as follows:

Gross unrealized:     
  Appreciation    $  1,295,003 
  Depreciation    (10,147,299)
Net unrealized appreciation (depreciation) of investments    $ (8,852,296)

Item 2. Controls and Procedures.

  1. 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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
  2. There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) 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.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.


SIGNATURES

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.

(Registrant)         Nuveen Arizona Premium Income Municipal Fund, Inc.         

By (Signature and Title)          /s/ Kevin J. McCarthy                    
                                                  Kevin J. McCarthy
                                                  Vice President and Secretary

Date         December 30, 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 (Signature and Title)         /s/ Gifford R. Zimmerman                    
                                                 Gifford R. Zimmerman
                                                 Chief Administrative Officer (principal executive officer) 

Date         December 30, 2008        

By (Signature and Title)         /s/ Stephen D. Foy                              
                                                 Stephen D. Foy
                                                 Vice President and Controller (principal financial officer) 

Date        December 30, 2008