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Currently, Arizona, Hawaii, the eastern time zone portion of Indiana, Puerto Rico, the U.S. Virgin Islands and American Samoa do not observe Daylight Saving Time. Source: World Almanac and Book of Facts 2005, p. 387.
However, any State can opt out of Daylight Saving Time by passing a State law. Hawaii does not observe Daylight Saving Time and neither does Arizona (although the Navajo Nation, in northeastern Arizona, does).For many years, most of Indiana did not observe Daylight Saving Time with the exception of 10 counties. Beginning in 2006, all of Indiana now observes Daylight Saving Time.However, the state remains divided in two time zones. Seventy-four counties (including state capital Indianapolis) are in the Eastern Time Zone.or many years, most of Indiana did not observe Daylight Saving Time with the exception of 10 counties. Beginning in 2006, all of Indiana now observes Daylight Saving Time. However, the state remains divided in two time zones. Seventy-four counties (including state capital Indianapolis) are in the Eastern Time Zone.