We introduce a non-commutative generalization of the notion of (approximately proper) equivalence relations and propose the construction of a ‘quotient space’. We then consider certain one-parameter groups of automorphisms of the resulting C*-algebra and prove the existence of KMS states at every temperature. In a model originating from thermodynamics we prove that these states are unique as well. We also show a relationship between maximizing measures (the analogue of the Aubry–Mather measures for expanding maps) and ground states. In the last section we explore an interesting example of phase transitions.