Rear Admiral George T. Pettengill relieved Bryant on 4 March 1935 and the ship participated in Fleet Problem XVI two months later. "Arizona" made a port visit to Balboa in May 1936 during Fleet Problem XVII. On 8 June, Captain George A. Alexander relieved Baum as captain, and, 15 days later, Rear Admiral Claude C. Bloch relieved Pettengill. During gunnery practice on 24 July, the combustion gases from one gun of Turret II entered the gun turret, burning one crewman. The turret's sprinkling system was turned on to prevent any powder explosion, but the water leaked into the turret's electrical switchboard and started a small fire that was easily put out. Due to the navy's limited budget, the ship spent most of this period in port as a fuel-saving measure. In Fiscal Year 1936–37, the ship was anchored for 267 days; the following year it was in port for 255 days. The ship spent the rest of her career based on the West Coast or in Hawaii.