MuniYield Arizona -- 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: 10/31/2008

Date of reporting period: 11/01/2007 – 01/31/2008

Item 1 – Schedule of Investments

BlackRock MuniYield Arizona Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (In Thousands) 
 
    Face         
    Amount    Municipal Bonds    Value 
 
 
 
Arizona - 134.7%    $ 1,000    Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding Bonds, AMT,     
        Junior Sub-Series, 6.30% due 12/01/2008    $ 1,006 
   
 
 
    1,750    Arizona Health Facilities Authority Revenue Bonds (Banner Health System), Series A, 5% due 1/01/2025    1,774 
   
 
 
    1,435    Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020    1,589 
   
 
 
    3,285    Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT,     
        Junior Subordinated Series B-1, 6.15% due 5/01/2029    3,436 
   
 
 
    1,000    Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT,     
        Senior-Series A-1, 5.90% due 5/01/2024    1,048 
   
 
 
    1,000    Arizona Tourism and Sports Authority, Tax Revenue Bonds (Baseball Training Facilities Project), 5% due 7/01/2016    1,037 
   
 
 
    1,500    Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Senior Series A, 5% due 7/01/2036 (c)    1,482 
   
 
 
    1,500    Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Sub-Series B, 5% due 7/01/2036 (c)    1,473 
   
 
 
    1,000    Flagstaff, Arizona, Aspen Place at the Sawmill Improvement District, Special Assessment Improvement Bonds, 5% due 1/01/2032    1,001 
   
 
 
    1,000    Gila County, Arizona, Unified School District Number 10 (Payson), GO (School Improvement Project of 2006),     
        Series A, 1% due 7/01/2027 (a)    1,002 
   
 
 
    1,000    Gilbert, Arizona, Water Resource Municipal Property Corporation, Water System Development Fee and Utility Revenue Bonds,     
        Subordinated Lien, 5% due 10/01/2029 (g)    1,042 
   
 
 
    750    Gladden Farms Community Facilities District, Arizona, GO, 5.50% due 7/15/2031    692 
   
 
 
    2,500    Glendale, Arizona, IDA, Revenue Refunding Bonds (Midwestern University), 5% due 5/15/2031    2,523 
   
 
 
    2,000    Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series B, 5% due 8/01/2030 (g)    2,034 
   
 
 
    900    Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A, 6.625% due 7/01/2020    872 
   
 
 
    2,000    Maricopa County, Arizona, IDA, Health Facilities Revenue Refunding Bonds (Catholic Healthcare West Project),     
        Series A, 5.25% due 7/01/2032    2,028 
   
 
 
    2,400    Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Services),     
        Series A, 7% due 12/01/2016 (b)(g)    2,973 
   
 
 
    1,968    Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 3-B, 5.25% due 8/01/2038 (d)(e)    2,041 
   
 
 
    1,000    Maricopa County, Arizona, Peoria Unified School District Number 11, GO, Second Series, 5% due 7/01/2025 (c)    1,049 
   
 
 
    1,485    Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Public Service Company of New Mexico Project),     
        Series A, 6.30% due 12/01/2026    1,492 
 
 
 

Portfolio Abbreviations

To simplify the listings of BlackRock MuniYield Arizona Fund, Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below.

AMT    Alternative Minimum Tax (subject to) 
COP    Certificates of Participation 
GO    General Obligation Bonds 
IDA    Industrial Development Authority 
PCR    Pollution Control Revenue Bonds 
S/F    Single-Family 

1

BlackRock MuniYield Arizona Fund, Inc.         
Schedule of Investments as of January 31, 2008 (Unaudited)    (In Thousands) 
 
Face             
Amount    Municipal Bonds        Value 
 
 
 
$ 1,000    Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due 7/01/2012        $ 1,164 
 
 
 
500    Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO, Refunding, 7.50% due 7/01/2010 (c)        560 
 
 
 
1,000    Maricopa County, Arizona, Unified School District Number 090, School Improvement, GO (Saddle Mountain),         
    Series A, 5% due 7/01/2014        1,046 
 
 
 
1,000    Mesa, Arizona, IDA Revenue Bonds (Discovery Health Systems), Series A, 5.625% due 1/01/2010 (g)(h)        1,068 
 
 
 
1,976    Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 2007-1, 5.25% due 8/01/2038 (d)(e)        2,035 
 
 
 
3,325    Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic Plaza Expansion Project),         
    Sub-Series A, 5% due 7/01/2035 (c)        3,366 
 
 
 
600    Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, AMT, Series B, 5.25% due 7/01/2032 (c)        603 
 
 
 
2,500    Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien, 5.50% due 7/01/2020 (c)        2,715 
 
 
 
1,985    Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 2007-2, 5.50% due 8/01/2038 (d)(e)        2,110 
 
 
 
500    Pima County, Arizona, IDA, Education Revenue Bonds (American Charter Schools Foundation), Series A, 5.625% due 7/01/2038        466 
 
 
 
740    Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C, 6.70% due 7/01/2021        768 
 
 
 
990    Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C, 6.75% due 7/01/2031        1,015 
 
 
 
1,000    Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project), Series O, 5% due 7/01/2026        905 
 
 
 
390    Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project II),         
    Series A, 6.75% due 7/01/2011 (h)        442 
 
 
 
575    Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project II), Series A, 6.75% due 7/01/2021    597 
 
 
3,050    Pima County, Arizona, Unified School District Number 1 (Tucson), GO, Refunding, 7.50% due 7/01/2009 (c)        3,277 
 
 
 
1,000    Pima County, Arizona, Unified School District Number 1 (Tucson), GO, Series C, 5% due 7/01/2027 (c)        1,042 
 
 
 
1,250    Pinal County, Arizona, COP, 5% due 12/01/2026        1,277 
 
 
 
1,250    Pinal County, Arizona, COP, 5% due 12/01/2029        1,264 
 
 
 
500    Pinal County, Arizona, IDA, Wastewater Revenue Bonds (San Manuel Facilities Project), AMT, 6.25% due 6/01/2026        526 
 
 
 
2,000    Queen Creek Improvement District Number 001, Arizona, Special Assessment Bonds, 5% due 1/01/2032        1,901 
 
 
 
1,500    Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue Refunding Bonds,         
    Series A, 5% due 1/01/2035        1,560 
 
 
 
2,750    Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2037        2,527 
 
 
 
2,250    Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2011 (h)        2,532 
 
 
 
1,195    Show Low, Arizona, IDA, Hospital Revenue Bonds (Navapache Regional Medical Center), 5% due 12/01/2035 (i)        1,170 
 
 
 
1,500    South Campus Group LLC, Arizona Student Housing Revenue Bonds (Arizona State University South Campus Project),         
    Series 2003, 5.625% due 9/01/2035 (g)        1,618 
 
 
 
1,500    Surprise Municipal Property Corporation, Arizona, Wastewater Development Impact Fee Revenue Bonds, 4.90% due 4/01/2032        1,400 
 
 
 
1,000    Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series B, 5.35% due 6/01/2047 (d)(e)        1,030 
 
 
 
1,000    Tucson, Arizona, IDA, Joint S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 5.10% due 7/01/2038 (d)(e)        1,038 
 
 
 
1,000    Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A,         
    6.125% due 7/01/2010 (h)(i)        1,097 
 
 
 
1,105    University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a)        1,134 
 
 
 
2,000    University of Arizona, COP, Series B, 5% due 6/01/2028 (a)        2,035 
 
 
 

2

BlackRock MuniYield Arizona Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (In Thousands) 
 
    Face         
    Amount    Municipal Bonds                     Value 
 
 
 
    $ 1,275    Vistancia Community Facilities District, Arizona, GO, 6.75% due 7/15/2022    $ 1,367 
   
 
 
    750    Vistancia Community Facilities District, Arizona, GO, 5.75% due 7/15/2024    779 
   
 
 
    2,000    Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical Center), Series A, 6% due 8/01/2033    2,063 
   
 
 
    1,000    Yavapai County, Arizona, IDA, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), AMT,     
        Series A-1, 4.90% due 3/01/2028    899 
   
 
 
    1,775    Yuma County, Arizona, Library District, GO, 5% due 7/01/2026 (j)    1,819 
 
 
 
Guam - 1.6%    1,000    Guam Government Waterworks Authority, Water and Wastewater System, Revenue Refunding Bonds, 5.875% due 7/01/2035    990 
 
 
 
Puerto Rico - 18.0%    1,000    Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds,     
        Series CC, 5.50% due 7/01/2031 (g)    1,037 
   
 
 
    560    Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, Series G, 5% due 7/01/2033    548 
   
 
 
    1,000    Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds,     
        Series N, 5.25% due 7/01/2039 (c)    1,022 
   
 
 
    1,000    Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2010 (g)    1,078 
   
 
 
    2,000    Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031    1,961 
   
 
 
    1,000    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series TT, 5% due 7/01/2037    992 
   
 
 
    1,500    Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds     
        (Cogeneration Facility-AES Puerto Rico Project), AMT, 6.625% due 6/01/2026    1,565 
   
 
 
    2,000    Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I, 5.25% due 7/01/2033 (m)    1,986 
   
 
 
    1,000    Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series N, 5.50% due 7/01/2027 (m)    1,021 
 
 
 
        Total Municipal Bonds (Cost - $94,887) - 154.3%    96,009 
 
 
 
        Municipal Bonds Transferred to Tender Option Bond Trusts (l)     
 
 
 
Arizona - 15.6%    8,670    Arizona State University Revenue Bonds, 5.50% due 7/01/2012 (c)    9,693 
 
 
 
        Total Municipal Bonds Transferred to Tender Option Bond Trusts (Cost - $9,022) - 15.6%    9,693 
 
 
 
    Shares         
    Held    Short-Term Securities     
 
 
 
    655    CMA Arizona Municipal Money Fund, 2.04% (f)(k)    655 
 
 
 
        Total Short-Term Securities (Cost - $655) - 1.0%    655 
 
 
 
        Total Investments (Cost - $104,564*) - 170.9%    106,357 
        Other Assets Less Liabilities - 0.9%    546 
        Liability for Trust Certificates, Including Interest Expense Payable - (7.0%)    (4,347) 
        Preferred Stock, at Redemption Value - (64.8%)    (40,317) 
        Net Assets Applicable to Common Stock - 100.0%    $62,239 
           
* The cost and unrealized appreciation (depreciation) of investments as of January 31, 2008, as computed for federal income tax purpose, were as follows:     

Aggregate cost    $ 100,426 
   
Gross unrealized appreciation    $ 3,132 
Gross unrealized depreciation    (1,536) 
   
Net unrealized appreciation    $ 1,596 
   

3

BlackRock MuniYield Arizona Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited)

(In Thousands)

(a)      AMBAC Insured.
 
(b)      Escrowed to maturity.
 
(c)      FGIC Insured.
 
(d)      FHLMC Collateralized.
 
(e)      FNMA/GNMA Collateralized.
 
(f)      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    Dividend 
Affiliate    Activity    Income 
 
 
CMA Arizona Municipal Money Fund    4    $5 
 
 

(g)      MBIA Insured.
 
(h)      Prerefunded.
 
(i)      Radian Insured.
 
(j)      XL Capital Insured.
 
(k)      Represents the current yield as of January 31, 2008.
 
(l)      Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
 
(m)      Commonwealth Guaranteed.
 

4

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: March 24, 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: March 24, 2008

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

Date: March 24, 2008