Answer
To access the Advanced Drawing Options for data layers in ArcMap in ArcGIS 9.x, right-click on the name of the layer in the TOC, open Properties > Symbology tab, and set the symbology for the layer.
At the lower right-hand corner of the Symbology tab, click on the Advanced button, and select 'Symbol Levels...'
At the Symbol Levels dialog, check the box labeled 'Draw this layer using the symbol levels specified below', then arrange the draw order of the features as needed.