Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH C ONGRESS
First Regular Session
HOusEB]LLri`O.       6311
INTRODUCED BY REP. REYNANTE U. ARROGANCIA
EXPLANATORY NOTE
The United Nations recognizes the right of every human being to have access to sufficient
water that is safe, acceptable and affordable.  The members of the United Nations (UN)
adopted the Sustainable Development Goals (SDGs) in 2015. These 17 goals are designed
to unite nations in the common cause of ensuring the general welfare of all humans by the
year 2030.  These goals include a focus on ending poverty, tackling climate change,  and
maintaining  high  standards   of  resources.t     Indeed,   water  is  critical  for  sustainable
development,    social-economic    development,    food    production    and    the    healthy
development of a nation.
The  bill  aims  to  ensure  universal  access  to  sufflcient  clean  water  and  encourages  the
participation of private sector through innovative solutions in addressing climate change.
This bill seeks to create and establish the Department of Water Resources as the agency
primarily tasked for the planning, policy formulation and management of the utilization,
protection   and   development   of  the   water   resource   in   the   Philippines   except   for
aquaculture.   Furthermore,  it recognizes water and water resources  as projects imbued
with national interest.   A National Water Sector Policy Board is also created that would
approve  the  National Water  Resources  Management  Framework Plan,  sets  the  policy
direction and recommend policies on water resources to the President.
This bill had its success in the legislative mill in the previous Congress.   It is hoped that
finally, in the  19th Congress, this bill will pass into law.
1 https: / /education.nationalgeographic.org/resource /sustainable-development-goal-6-clean-water-and-
sanitation


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH C ONGRESS
First Regular Session
HoUSEBILLivo.      6311
INTRODuCED 8¥ REp. RE¥NAr`ITE u. ARROGANCIA
ANACT
ESTABLISHNG THE NATIONAL FRAMEWORK FOR WATER RESOURCE
MAP`IAGERENT AND CREATING THE DEPARTRENT OF WATER
RESOURCES AND THE WATER REGULATORY COMMISSION, DEFINING
TREIR MANDATES, POWERS AND FUNCTIONS, AND APPROPRIATING
FUNDS TIHREFOR
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress assembled..
CHAPTER I
GENERAL PROVISIONS
SEcrJOIV I. £feorf rft/c. -This Act shall be known as the "National Water Act".
SEC. 2. Dcc/arafr.o# a/Po/f.cy. - It is hereby declared the policy of the State to ensure the
provision  of  safe,  adequate,  affordable,  and  sustainable  water  supply  and  improved
sanitation  services,  while  maintaining  the  protection,  preservation,  and  revival  of the
quality of the country's water resources and ecological balance.
In pursuit of this policy, this Act shall have the principal objective of ensuring and
accelerating  universal  access  to  water  supply  and  sanitation  services,  in  a  regulatory
regime  that  encourages  responsible  private  sector  participation,  and  shall  foster  and
prioritize  the  establishment  of infrastructure  and  public  works  that  adopt  innovative
solutions  and  international best  practices  to  address  the  challenges  of climate  change.
Further,  all  water  and  water  treatment  infrastructure  projects  are  hereby  declared  as
projects imbued with national interest.


SEC. 3. Defitnition Of Terms. - A:s used in this Act.
(a)        Bulk  water  supplier refers  to  any  entity,  natural  or juridical,  whether public  or
private, supplying or intending to supply large quantities of raw or treated water to buyers
who will use these for their own consumption, such as industrial companies, or for retail
distribution  to  consumers  such  as  water  service  providers  or  real  estate  developers
managing their own distribution network.
a)        Environmental  services  refer  to  qualitative  functions  of natural  non-produced
assets  of land,  water,  and air,  including related ecosystems,  and their biota,  and which
may  be  categorized  into  three  (3)  basic  types:  (a)  disposal  services  which  reflect  the
functions of the natural environment as an absoaptive sink for residuals;  (b) productive
services which reflect the economic functions  of providing natural resource  inputs  and
space for production and consumption, and (c) consumer or consumption services which
provide for physiological as well as recreational and related needs of human beings.
(c)        Flood  control refers to methods,  acts,  and protocols to be  observed in order to
prevent and reduce the detrimental and catastrophic effects of flood water which include
sediment-laden or turbid flows, and hyper-concentrated flows or debris flows.
(d)        Flood RIsk Management (FRM) refers to such acts of defining and determining the
appropriate  methods,  acts,  and protocols  aimed at preventing and reducing the  risk of
incurring  loss  of both  life  and  property  due  to  flood  waters.  Flood  risk  management
consists of a cycle of prevention, mitigation, adaptation, preparedness and early waning,
and response and recovery. The elements of FRM include: integrating land use planning
and coastal zone management into water management;  adopting a holistic approach so
that FRM is part of wider risk or multi-hazard management of earthquakes, landslides,
and  storm  surges;  managing  risk  and  uncertainty  as  a  whole  so  it  not  only  mitigates
hydrological uncertainties but also social, economic and political uncertainties on account
of human behavior and the cultural dimensions of FRM.
(e)        Gender Equality refers to the principle asserting the equality of men and women
and their right to enjoy equal conditions realizing their full human-potentials to contribute


to  and benefit from the results  of development,  and with the  State recognizing that all
human beings are free and equal in dignity and rights.
(a         Infrastructure  and  public  works  refer  only  to  wholly  or primarily  water-related
projects and does not include projects that do not fall within the purview of the objectives,
power and duties of the Department of Water Resources created under this Act/
(g)        Integrated   Water   Resource   Management   (IWRM)   refers   to   a   systematic,
collaborative,     and    multi-stakeholder    process    which    promotes    the    coordinated
development and management of water, land,  and related resources within geophysical
boundaries in order to maximize the resultant economic and social welfare in an equitable
manner, without compromising the sustainability of vital ecosystems.
(h)        Levels of water supply refer to communal sources of water described according to
location and size of the recipient human settlement as follows:
1)          Level I or the point source is a protected well or a developed spring with an outlet
but without any distribution system, generally adaptable to rural and upland areas where-
houses  are  thinly  scattered,  and  is  a  facility  which  usually  serves  an  average  of  15
households.
2)          Level Il or the communal faucet system or stand posts is a system composed ofa
water source, a reservoir, a piped distribution network, and communal faucets where one
faucet serves 4 to 6 households and is generally suitable for rural and urban fringe areas
where houses are clustered densely to justify a simple piped system.
3)          Level Ill  or the waterworks  system  or individual house connections  is  a system
with a water source, a reservoir, a piped distribution network and household taps, suitable
for densely populated urban areas.
(i)         License refers to the water supply and/or sanitation services operating License
that  the  Water  Regulatory  Commission  is  authorized  to  grant  and  issue  to  service
providers.
a)         Licensee refers to a service provider to whom a license is granted or issued by the
Water Regulatory Commission


(k)        Missionary water services refer to water supply or services to areas that have no
existing  safe  water  supply  and  services  due  to  geographic  limitation  or  absence  of
economic and market viability.
(I)         National  Water  Resources  Management  Plan  (NWRMP)  refers  to   a  policy
document that contains a framework to guide the development and management of all the
water resources in the Philippines, the general strategies and work to be pursued to ensure
the  sustainability of the resource towards water security,  and top-level direction  on the
utilization of existing water resources in line with national development plans, policies,
and programs in accordance with the IWRM framework. The NWRMP shall also include
a water infrastructure development program for all waters of the country as well as provide
general guidance on how this shall be supported within an integrated financing framework
that can draw from public, private, and international development funding sources.
(in)      Net water Load refers to the difference of the initial waste load of the abstracted
water and the waste load of the final effluent discharge of an industry.
(n)        Regulatory units refer to the offices established under section 20 of this Act which
issue  licenses  authorizing the  operation  of Water  Supply  and  Sanitation  Services,  and
provide, renew, determine, fix, and approve water and sewerage tariffs, rates and charges
that licensees may impose.
(o)        River basin refers to an area of land drained by a stream orbody offixed water and
its tributaries which have a common outlet for surface run-off
(p)        River Basin organization (RBO) refers to multi-stakeholder organizations which
plan, coordinate, and monitor activities within a river basic cluster.
(q)        Sanitation refers to the provision offacilities and services for the safe management
of human  excreta,  from  toilet  to  containment,  and  storage  and  treatment  onsite  or
conveyance,  treatment  and  eventual  safe  end  use  or  disposal,  and  includes  the  safe
management of solid waste and animal waste.


(r)         Sediment  management  refers  to  control  of sediment  erosion  and  deposition  in
rivers, reservoirs,  and coastal zones through non-structural and structural measures and
control works.
(s)         Sustainable Development Goals (SDG) also known as the 1 7 Global Goals refer to
the universal call to action to end poverty, protect the planet and ensure that all people
enjoy peace and prosperity by 2030 adopted by all United Nations Member States in 2015 .
(t)         Septage is the liquid and solid material pumped from a septic tank,  cesspool,  or
other primary treatment source.
(u)        Septage Management refers to the provision of proper collection, treatment,  and
disposal of septage.
(v)        Service Area refers to the area covered by the water distribution system, sewerage,
and/or septage management services.
(w)       Service provider refers to any entity, natural orjuridical, whether private or public,
providing  or  intending  to  provide  levels  11  &  Ill  water  supply,  including  bulk  water
suppliers,  sewerage,  septage  treatment,  and  disposal  services  for  domestic,  residential,
industrial, or commercial use.
(x)        Sewage  refers to waterborne human or animal wastes, excluding oil or oil waste,
removed   from   residences,   buildings,   institutions,   and   industrial   and   commercial
establishments together with such groundwater, surface water and storm waters as may be
present including such waste from vessels, offshore structures, other receptacles intended
to receive or retain waste or other places or the combination thereof.
(y)        Sewerage refers to any system or network ofpipelines, ditches, channels or conduits
including pumping stations,  lift stations and force mains,  service connections including
other  infrastructure,   devices   or  appliances   appurtenant  thereto,   which   include   the
collection, transport, pumping and treatment of sewage to a point of disposal.


(z)        Sewers  refer  to  pipes  or  such  other  works  or  structures  which  are  built  and
constructed to cany, transport, and dispose sewage
(aa)      Social  inclusion  refers  to  the  process  of improving  the  terms  for  disadvantaged
individuals and groups to take part in society.
@b)      Tariffs refer to such amounts which may be charged by licensees for their water
supply and sanitation services based on principles, standards and guidelines established by
the Department of water Resources.
(cc)      Water Demand Management (WDM) refers  to  any method,  whether technical,
economic,  administrative,  financial  or  social  that  will  accomplish  one  or  more  of the
following:
(1)        Reduce the quantity or quality or water required to accomplish a specific task;
(2)        Adjust  the  nature  of  the  task  or  the  way  it  is  undertaken  so  that  it  can  be
accomplished with less water or with lower quality of water;
(3)        Reduce the loss in quantity or quality of water as it flows from source, through use,
to disposal;
(4)        Shiftthe timing of use from peak to off-peak periods; and
(5)        Increase the ability of the water system to continue to serve society during times
when water is in short supply.
(dd)     Water Districts refer to government-owned and controlled corporations organized
under  Presidential  Decree  No.  198,  as  amended,  created  primarily  to  acquire,  install,
operate,  maintain,  and  improve  water  supply  and  distribution  systems  for  domestic,
industrial   and   municipal  uses   of  residents   and   to   provide,   maintain   and   operate
wastewater  collection,  treatment  and  disposal  facilities  within  the  boundaries  of the
district.
(ee)      Water pollution refers  to  any alteration  of the physical,  chemical,  biological,  or
radiological  properties  of a body  of water resulting  in  the  impairment  of its  purity  or
quality.


(ff)       Water resource refers to water under the ground or groundwater, water above the
ground such as  surface water,  run-offs,  floods,  stormwater and urban  drainage,  treated
wastewater, water in the atmosphere or rain water, and the waters of the sea within the
territorial jurisdiction of the Philippines.
(gg)      Water Resources Regions refer to the contiguous clusters of river basins which are
grouped together according to the hydrological boundaries, physiographic features,  and
homogeneity in climate, whether or not they straddle different local government units, for
administrative purposes under the Department of Water Resources.
(hh)     Water service provider (WSP) refers to the water district, any Local Government
Unit   (LGU)-   run   water  utility,   Barangay   Waterworks   and   Sanitation   Association
(BWSA),  Rural  Waterworks  Sanitation  Association  (RWSA),  cooperative  and  private
sector entity that provides water supply services to any given area.
(ii)        Water supply refers to any activity comprising Levels I,  II and Ill water supply
including bulk suppliers, suppliers to subdivisions, and other water service providers.
CHAPTER H
TIH DEPARTRENT 0F WATER RESOURCES
SEC. 4.  7lfec I)apa#fflc#f a/ Wafgr Rcso#rces.  - There is hereby created and established the
Department of water Resources, hereinafter referred to as the Department.
SEC.  5.  A4la#dafe  a/ ffec  Dcpa#"c#/.  -  The  Department  shall  be  the  primary  agency
responsible for the comprehensive and integrated identification and mapping of all water
resources,    planning,    policy    formulation,    and    management    of   the    ownersbip,
appropriation, utilization, exploitation, development, and protection of water resources in
the Philippines to ensure the optimal use thereof for domestic and municipal water supply,
sanitation,   irrigation,   hydropower,   industry,   navigation,   flood   management,   and
recreation except fisheries or aquaculture.
The Department shall also be the primary agency responsible for the planning and
policy   formulation   towards   the   attainment   of  universal   access   to   safe,   adequate,


affordable,   and   sustainable  water  supply,   and   improved   sanitation   services   for  all
Filipinos.
The  Department  shall  be  the  primary  national  agency  to  enforce  Presidential
Decree  No.  1067  otherwise  known  as  the  "The  Water  Code  of the  Philippines"  and
Republic Act No. 9275, otherwise known as the "Philippine Clean Water Act of 2004".
The Department shall exercise the powers and functions of the defunct Pasig River
Rehabilitation Commission created under Executive  Order No.  54,  Series  of 1999  and
abolished under Executive Order No.  93,  Series  of 2019,  specifically the following roles
that were transferred to the Manila Bay Task Force and DENT through the latter EO:
(a)        Update  and  take  the  lead  in  the  overall  implementation  of  the  Pasig  River
Rehabilitation   Master   Plan,   which   shall   harness   the   Pasig   River's   potential   for
transportation, recreation and tourism purposes while undertaking the rehabilitation and
restoration of its maritime life; and
a)        Ensure that the Casements provided for in the civil code and other relevant laws
are enforced, especially in all the esteros and waterways that drain into the Pasig River as
well as abate the dumping of untreated industrial wastewater and sewerage into the river,
including all acts and omissions in violation of presidential Decree (PD) No. 984, s.1976,
as  amended entitled,  Providing for the Revision of Republic Act No.  3931,  commonly
known  as  The  Pollution  Control  Law,  and  for  other  purposes,  PD  No.  274,  s.  1983
entitled,   Pertaining  to   the   Preservation,   Beautification,   Improvement   and   Gainful
Utilization for Socio-Economic Purposes, and other relevant laws.
SEC.  6. G#I.df.#g Prf.#cip/cs.  In pursuit of its mandate, the Department shall be guided by
the fouowing key principles:
(a)        The concept of good water governance for water security and sufficiency shall be
adopted across all levels of governance by stakeholders such as the national government,
local government, non-government organizations, private organizations, individuals, even
global  societal  actors,  and  in  various  sectors  such  as  water  supply,  irrigation,  fisheries,


hydropower,  navigation,  ecosystem  services,  flood  management,  climate  change,  and
recreation. It shall entail publicly transparent, socially accountable, and multi-stakeholder
participatory water policy planning, management, and decision-making processes.
a)        Access to safe water supply and improved sanitation is a human right that needs to
be fulfilled and protected.
(c)        Integrated water Resource Management (IWRM)  shall be  adopted  as the basic
frameworks which is the coordinated development and management of water, land, and
related resources within hydrological boundaries to optimize economic and social welfare
without compromising the sustainabflity of vital ecosystems. The IWRM Framework shall
include  an  enabling  environment  that  utilizes  proper  policies,  legal  instruments,  and
institutional  frameworks  for  effective  implementation,  participatory  and  collaborative
water policy and management decisions, and management instruments for efficient use of
updated and accurate data,  science-based decision support systems, proper information,
education, communication (IEC) programs, assessment and allocation tools, or regulatory
functions.  It shall observe the mutual accountability mechanism among stakeholders  at
the  national,  regional  and  global  levels,  reinforcing  multi-stakeholder  decision-making
following a framework with specific, measurable, attainable, relevant, and timely actions.
(d)        Each  river  basin  has  its  unique  characteristics  relating  to  the  physical,  socio-
cultural, and other aspects, and water management shall be performed at river-basin level,
involving all the stakeholders at the particular river basin.
(e)        Integrated  and  accurate  data  collection  and  analysis  and  the  use  of  scientific
decision support systems shall be undertaken in water resources management including
flood  modeling  and  waming  systems  that  are  essential  for  an  effective,  efficient,  and
sustainable water resources management system.
(f)         The development of water resources shall include strategies for the mitigation of
water-related hazards and climate change adaptation.


(g)        Waterresources and services shouldbe provided where they are intended and most
needed so that water is fairly and sustainably managed.
(h)        The  proper  operation  and  maintenance  of waterworks  systems  resulting  in  the
uninterrupted  and adequate  supply  and  distribution  of potable  water for  domestic  and
other purposes, and the proper operation and maintenance of sewerage systems which are
essential services to public health and safety, are to be ensured at all times. The State shall
therefore  supervise  and  control the  establishment,  operation  and  maintenance  of such
Systems.
SEC. 7. Objectives Of the Department. -The Dapa,rtmeut shall..
(a)        Promote and adopt water demand management as a national policy to ensure that
water is optimized, that water efficiency and conservation become a way of life, that the
recycling and reuse of water and treated wastewater are widely practiced,  that water is
properly  priced  to  encourage  efficient use  and  conservation  and  that  rainwater,  flood
waters, and run-offs are captured or harvested, stored and treated for future use:
(b)        Prioritize and seek the immediate attainment ofuniversal access to safe, adequate,
affordable and sustainable water supply and improved sanitation services for all Filipinos
in a manner consistent with the protection, preservation, and revival of the quality of the
country's water resources, and to adopt all needed measures to advance the right of the
people to a balanced and healthful ecology in accord with the rhythm and harmony of
nature.
(c)        Strengthen and coordinate integrated water resources management planning and
policy making to ensure sustainable and fair allocation and efflcient use of water resources
among competing uses and users;
(d)        Ensure that integrated water resources management is strongly coordinated with
land use and coastal and multi-hazard planning and management;
(e)        Develop sustainably, and manage water sources and water resources toward water
security, taking into consideration water, land and related resources aimed at increasing
water dependability for different uses,  optimizing economic benefits and social welfare
without compromising the sustainability of vital environmental systems;
(f)         Strengthen  and  coordinate  policy  making  and  planning  towards  ensuring  the
availability of water for food security and energy security, as well as towards the protection


of  communities  and  environments   against  flood  and  other  water  induced  hazards
including sediment hazards;
(g)        Ensure  that  the  strategy  for  water  resources  development  and  conservation  is
participatory, and that planners, policymakers and users including community members
are involved at all levels;
(h)        Develop  a  standardized  pricing  framework  for  water  use   that  accounts   for
environmental extemalities ; and
(i)         Ensure that all sources of water, including surface water, groundwater, rainwater
and floodwater are identified, mapped, monitored, conserved and managed for productive
use and the resulting wastewater is managed properly, reused and responsibly disposed of
the following approved environmental standards.
£EC. 8. Powers a#dF##ctf.o#s a/ffec Dqpa#fflc#t. -The Department shall have the following
powers and functions:
I.           Policymaking and planning
(a)        Ensure that Integrated water Resource Management (IWRM)  is adopted as the
strategic  framework for water management policy making and planning in the country
and  coordinate  the  implementation,  promotion,  revision  and  enhancement  of IWRM
plans;
a)        Formulate  policies,  strategies,  and  targets  in  coordination  with  other  relevant
entities to meet the goals and objectives for water supply and sanitation, water quality,
irrigation, hydropower,  flood control,  stormwater utilization, and urban drainage.  Such
policies shall, among other guidelines,  integrate the issues of water and sanitation,  food
security, energy, environment and flood control, and climate change;
(c)        Formulate  and  develop  policies  to  promote  universal  access  to  safe,  adequate,
affordable,   and   sustainable  water  supply,   and   improved   sanitation   services   for  all
Filipinos;
(d)        Regularly update, every five years or as deemed necessaryby the Department, and
in consultation with other agencies and stakeholders, the NWRMP following the IWRM
framework and integrate therein a national land use plan;


(e)        Undertake  river  basin  survey,   inventory  and  appraisal  of  water  and  related
resources,   and  develop  comprehensive  basin-wide  plans  of  storage,  retardation,   and
control to maximize conservation and multipuapose use of water in the basin;
(f)         Conduct continuing hydrological and hydrometeorological surveys and studies of
the country's renewable water supply,  and establish,  operate,  and maintain observation
station  networks  with  a  view  towards  formulating  long-term  policies  to  balance  the
sustainability  and  optimal  multiple  use  of  water  resources,   defining  the  hydrologic
boundaries  of basins  of the existing water supply,  and establish,  operate,  and maintain
observation  station  networks  with  a  view  towards  formulating  long-term  policies  to
balance  the  sustainability  and  optimal  multiple  use  of water  resources,  defining  the
hydrologic boundaries of basins of the existing water supply sources and developing or
updating and implementing countrywide comprehensive basin-wide master plans;
(g)        Strengthen  and  coordinate  policy  making  and  planning  for  flood  management,
integrated with stormwater or urban drainage and appropriate retention or retarding in
order  to  harvest  and  reuse  water,  and  to  plan  against,  prevent,  and  minimize  the
detrimental and catastrophic effects of flooding;
(h)        Assist and provide the National Economic and Development Authority (NEDA)
with the required data and input from the water sector in the formulation of the country's
short-term and long-term strategic development plans and actions, and recommend to the
NEDA   Board  the   adoption   of  general  policies   and  guidelines   for  water  resources
development;
(i)         Review, approve, and provide oversight over all water-related development plans
and programs of any agency within the context of the NWRMP, and overall national plans
and programs ;
¢)         Develop and implement,  in coordination with other   relevant agencies,  effective
codes, standards, benchmarks, and reasonable guidelines to ensure the safety of all public
and private water structures in the country, and assure efficiency and proper quality in the
construction  of water,  sanitation,  irrigation,  hydropower,  flood  control  and  drainage
infrastructure;
(k)        Ensure  that gender equality,  social  inclusion,  environmental protection,  climate
resiliency, and disaster risk reduction are integrated into any water resource management
planning, policy making, and the design and construction of water infrastructure;


(I)         Ensure that the planning and design of water infrastructure considers the highest
efflciency  and  most  appropriate  technology  and  quality,  in  accordance  with  national
development obj ectives ;
(in)       Review existing guidelines appropriate for private sector participation in the water
sector and submit recommendations  to  the  Public-Private  Partnership  (PPP)  Center of
NEDA and other concerned agencies to promote and enable more PPPs in the sector;
(n)        Build a central repository of water data and effect inter-sectoral, inter-agency and
inter-departmental  coordination  on  all  aspects  of data  gathering  and  management  for
water resources development planning and compel the submission of statistics and data
on water utilization with the  aim  of operationalizing the  integrated  approach  to  water
resources management;
(o)        Ensure the effective implementation of all the provisions ofRepublic Act No. 9275,
Presidential Decree No.1067, and Sections 9,10,11,12 &  13, Chapter 11 of presidential
Decree No. 856, otherwise known as the Code on Sanitation of the Philippines;
a)        Promote  philippine  participation  in  information  sharing  and  education  on best
practices in support of intemational efforts to achieve universal access to safe water and
improved sanitation; and the integration of water, energy, environment and food security;
and
(q)        Issue  and promulgate  rules,  regulations  and guidelines  as  may be  necessary  to
implement and enforce its powers and functions under this Act.
11. Resource Regulation
(a)        Manage  and  conserve  the  country's  water  resources  to  ensure  the  optimal  use
thereof for domestic water supply,  sanitation,  irrigation,  hydropower,  navigation,  flood
control,  and  recreation  purposes,  and  enhance  and  maintain  water  quality,  conserve
watersheds, control water pollution, and restore the environment, without compromising
the natural ecosystem functions and services;
a)        Regulate  and control the utilization,  abstraction,  diversion  and  development  of
water resources,  taking  in  consideration  their  equitable  distribution  among  competing
demands and determine the standards of beneficial and priority uses of water in times of
crisis and national emergencies;


(c)        Formulate, promulgate, and enforce rules and regulations for the development and
optimum  use  of water  resources  and  its  administration  and  management,  including
coherent water protocols,  operating rules of all existing and future water infrastructure;
general criteria, methods and standards for basic data collection and project identification,
formulation and planning, and appropriate sanctions to be imposed for non-compliance;
(d)        Regularly review regulations prescribed by any government agency pertaining to
water use,  exploitation,  development,  and  conservation  or protection  of waters,  water
resources, and watershed or basin areas with respect to this Act;
(e)        Impose   fees   or   charges   as   may   be   deemed   necessary   for   water   resources
conservation and protection, such as:
(1) Polluter's Fee, which shall be based on the net waste load depending on the wastewater
charge formula pursuant to Republic Act No. 9275;
(2) Raw water price, which sham take into account,  among others, the scarcity of water;
and
(3) Appropriate payment structures for environmental services.
(f)         Deputize  LGUs  to  collect  the  national  fees  or  charges  for  resource  regulation
within their respective jurisdictions ;
(g)        Collect,  regularly  update,  monitor,  and  analyze  water resources  data  including
climatology, hydrological and other water-related data and ensure that such data is easily
accessible by relevant and authorized users;
(h)        Establish,  operate,  and maintain  observation  station networks and a centralized
water  resources   data  center  for  the  scientiflc  survey  and  appraisal  of  surface   and
groundwater  potentials  of  the  country,  and  determine  the  annual  renewable  water
available per water resources region;
(i)         Maintain a database that will contain updated relevant information on water data
which will be accessible by relevant and authorized users;
0.)         Develop  and  continuously update  a  computerized  decision  support  system  that
incorporates data management systems relating to acquisition and database, model base
in  terms  of physical  design,  planning  and  decision  models,  and  user-friendly  interface
concerning graphical and visualization tools
(k)        Conduct and promote special studies and research on water economics and other
water  resources  development  and  management  issues  and  concerns  such  as  climate


change,  weather modification,  flood monitoring  and  modeling,  environmental  quality,
and desalination; and
(1)         Raise  public  awareness  through  information,   education  and  communications
programs, and build capacities for informed participation in water resources management
at the national and river-basin level.
Ill. Institutional Arrangement with Public Water Organizations
(a)        Develop   guidelines   including  rules   of  partnership,   between   and   among  the
Department, field offices of national government agencies, LGUs and other stakeholders
in water resource management, and facilitate the establishment of multi-stakeholder river
basin organizations (RBOs) per river basin, and strengthen and support existing RBOs and
monitor their activities;
(b)        Develop materials for capacity building and training of prospective RBOs;
(c)        Authorize its representatives or any deputized agent to enter any property ofpublic
dominion with or without prior notice and consent, any private land, building or enclave,
whether  inhabited   or  not,   for  the   purpose   of  conducting  hydrologic   surveys   and
investigations,   including  assessing  and  evaluating  the   conditions   of  water  facilities
installed, and determining compliance with water laws and standards;
(d)        Provide technical assistance to water users including farmers,  communities,  and
LGUs and other water service providers (WSP) whether directly or in coordination with
other agencies on all aspects of integrated water resources management;
(e)        Respond to consumer complaints, and ensure the adequate promotion of consumer
interests;
(f)         Deputize  agents,  whether  from  the  public  or  private  sector,  to  assist  in  the
performance of any of the powers and functions of the Department;
(g)        Appoint, hire, and maintain adequate staff and personnel, advisers or consultants
with  suitable  qualifications  and  experience,  as  necessary,  subject  to  existing rules  and
regulations.
IV. Coordination


(a)        Coordinate  and  integrate  water resources  development  activities  of the  country
within the context of national plans and policies for social and economic development;
a)        Coordinate  with  either government  agencies,  universities,  academe  and  private
professional groups  in all aspects  of data gathering,  the conduct of special  studies  and
research on all related aspects of water resources management and development such as
climate change, environmental quality,  desalination, and   the development of operating
strategies, procedures, and protocols and accompanying computerized decision tools for
major water facilities;
(c)        Coordinate  with the  concerned  and  relevant  agencies  engaged  in  flood  control,
flood risk management, and drought risk management; and
(d)        Coordinate proactively with  LGUs  to  ensure  the  integration  of water resources
development  plans  into  their  comprehensive  land use  plans  (CLUPs),  Comprehensive
Development  Plans  (CDPs)  or Provincial  Physical  framework  and  Development  Plan
(PPFDP).
V. Other Functions
(a)        Create when necessary, water resource subsidiaries, instrumentalities, and entities
to   engage   in   water   transmission,   water   distribution,   wastewater   treatment   and
management, and sanitation in accordance with existing relevant laws.
a)        Enter  into  contracts,  joint  venture  agreements  or  understanding,  public-private
partnerships,  and  memorandum  of agreements  or  understanding,  either  domestic  or
foreign, relating to investment and financing water-related projects, under such terms and
conditions as the Department may deem proper and reasonable subject to existing laws.
(c)        Exercise such other powers and functions  necessary or incidental to the effective
administration and management of the country's water resources.
SEC. 9. Sccre/¢ry a/ffec Dtparf"c#f a/ Jyafcr Rcso#rces. - The authority and responsibility
for the exercise of the mandate of the Department and for the discharge of its powers and
functions shall be vested in the Secretary of the Department, hereinafter referred to as the
Secretary, who shall:


(a)        Advise the president on the promulgation of executive  or administrative orders,
regulations, proclamations and other issuances relative to matters under the jurisdiction
of the Department;
a)        Establish the policies and standards for the operation of the Department pursuant
to the President's guidelines;
(c)        Promulgate rules and regulations necessary to cany out the objectives, policies, and
functions of the Department;
(d)        Exercise   supervision   and   control   over   all   bureaus   and   offices   under   the
Department;
(e)        Supervise all attached agencies and corporations in accordance with law;
(f)         Represent the Department in contracts, awards, and other similar agreements;
(g)        Delegate authority for the performance of any power or function, as deflned herein
to officials and employees under his direction as deemed appropriate;
(h)        Act  as  the  chairperson  of the  governing board  of the  attached  agencies  of the
Department;
(i)         Designate and appoint officers  and employees  of the  Department excluding the
Undersecretaries,  Assistant Secretaries,  and Regional  and Assistant Regional  Directors,
in accordance with the civil service laws, rules and regulations; and
a)         Perform such other duties and responsibilities as may be provided by law.
SEC.  /0.  OJffce a/ffec Scc7itrfary.  -The  Office  of the  Secretary  shall be  composed  of the
Secretary, Undersecretary, Assistant Secretary and the Secretary's immediate staff.
SEC.  JJ.   U#dcrsccrcf#/f.cs.  The  Secretary  shall  be  assisted  by  not  more  than  five  (5)
Undersecretaries, who shall be appointed by the President upon the recommendation of
the   Secretary   namely:   Undersecretary   for   Resource   Regulation   and   Governance,
Undersecretary for Inland Waters and Water for Agrioulfure, Undersecretary for Resource
Development,    Undersecretary   for   Planning   and   Policy   and   Undersecretary   for
Missionary, Water, Indigenous People, and Special Concerns.
The Secretary is hereby authorized to delineate and assign the respective functional areas
of responsibility of the Undersecretaries in accordance with the mandate and objectives of
the   Department:   Provided,   That   no   Undersecretary   shall   be   assigned   purely   to


administrative responsibilities.  Within their respective  functional areas of responsibility,
the Undersecretaries shall:
(a)        Advise  and  assist  the  Secretary  in  the  formulation  and  implementation  of the
policies. plans, programs and projects of the Department;
a)        Supervise   all   the   operational   activities   of  the   assigned  units   for  which   the
Undersecretary is responsible to the Secretary; and
(c)        Perform such other functions deemed necessary as may be assigned or delegated
by the Secretary to promote efficiency and effectiveness in the delivery of public services
or as may be required by law: Provided, That the Undersecretary for Planning and Policy
shall, in coordination with the Planning and Policy Service, be primarily responsible for
advancing current efforts in attaining the ultimate   goal   of  universal   access   to   water
supply  and  sanitation  systems,  and  sustainable management of water resources under
the SDGs, and the integration of water, energy, environment and food security.
JEC.   J2.  £4ss!.sfa#f  Scc7ief¢rf.cs.   -  The  Secretary  shall  be  assisted  by  six  (6)  Assistant
Secretaries to be appointed by the President of the Philippines upon the recommendation
of the  Secretary:  one  each  for  Planning  and  Policy  Service,  Decision  Support  System
Service,   Resource  Regulatory   Service,   Comptrollership  and  Financial  Management
Service,   Legal   and   Legislative   Service,   and  Administrative   and   Human   Resources
Management Service.
No person shall be appointed  Secretary,  Undersecretary and Assistant  Secretary of the
Department unless the person is a citizen and resident of the Philippines,  of good moral
character, of proven integrity, competence and expertise in water resource  management:
Provided, That at least one (I) of the Undersecretaries and at least two (2) of the Assistant
Secretaries shall be career officers.
SEC.  Jj.  Ong¢#f.zafl.o#a/ Str#cf##.  - The Department shall be composed of the following
organizational units :
(a)        Department proper. -The Department shall consist of the offlce of the secretary,
the Offices of the Undersecretaries and Assistant Secretaries, the Intemal Audit Office, the
Public   Affairs Office, the Water Pollution Adjudication Board, the Planning and Policy


Service, Decision Support System Service, Administrative and Human Resources Service,
Legal  and  Legislative  Service,   Comptrollership  and  Financial  Management  Service,
Resource Regulation Service, and the Water Resources Regional Offices.
a)        Attached agencies. -The Department shall exercise administrative supervision over
the following agencies for puxposes of policy and program coordination, monitoring, and
evaluation:
(1)        The Local water utilities Administration (LWUA), whose mandate, powers, and
functions   are  defined in Presidential  Decree No.  198,  otherwise  known  as  the Public
Water Utilities  Act of 1973,  as  amended,  shall be  transferred  from the  Department  of
Public  Works  ariel  Highways  and  attached  to  the  Department.  It  shall  continue  to
primarily function as  a specialized lending institution  for the promotion,  development,
and financing of local water utilities. In the implementation of its functions, the LWUA
shall:
i.           Prescribe  minimum  standards  and  regulations   in  order  to  ensure  acceptable
standards  of  construction  materials  and  supplies,  maintenance,  operation,  personnel
training, accounting and fiscal practices for local water utilities;
ii.          Furnish  technical  assistance  and  personnel  training  programs  for  local  water
utilities;
iii.        Monitor and evaluate local water standards; and
iv.         Effect system integration, joint investment and operation, district annexation and
de-annexation  whenever economically  warranted  as  amended by  Sec.  22,  Presidential
Decree No. 765.
(2)  The  Metropolitan  Waterworks  and  Sewerage  System  (MWSS),  whose  mandate,
powers, and functions are defined under Republic Act No. 6234, as amended entitled, An
Act Creating The Metropolitan Waterworks and Sewerage System And Dissolving The
National  Waterworks  and  Sewerage  Authority;   And  For  Other  Purposes,   shall  be
transferred from the DPWH and attached to the Department: Provided, That the MWSS
shall continue to facilitate the exercise by the concessionaires    of    their    responsibility;
carry out accounting and notification functions,  monitor,  report,  and administer loans;
perform related  functions  in  connection with  existing projects;  manage  and  dispose  its
retained assets; and manage and operate the Umiray-Angat Transbasin Project.


(3) The National Irrigation Administration (NIA), whose mandate, powers, and functions
are defined under Republic Act No. 3601 as amended by Presidential Decree No. 552 and
Presidential Decree No.  1702;
(4)  The  Laguna  Lake  Development  Authority  (LLDA),  whose  mandate,  powers  and
functions are defined under Republic Act No. 4850, as amended entitled, An Act Creating
the Laguna Lake Development Authority, Prescribing Its Powers, Functions and Duties,
Providing Funds Therefor, And For Other Purposes shall be transferred from the DENR
and attached to the Department.
The LLDA   shall continue to scope as the lake management and development authority
similar to a multi-stakeholder river basin organization and shall ensure the implementation
of the Laguna Lake Master Plan which shall be updated by the Department to ensure
alignment with the NWRMP.
Any  agency  performing  water  resources  management,   conservation  and  protection
functions may be transferred to the Department as the President deems necessary.
(c)        Offices,   Functions   and   Personnel   to   be   Completely   Subsumed   under   the
Department. -The     following offices with their powers, functions, personnel, applicable
funds and appropriations, records, equipment and property under  the Department:
(1)        The National water Resources Board (NWRB) with all its divisions and sections,
whose  mandate,  powers and functions are provided in Presidential Decree No.  424,  as
amended;
(2)        The River Basin control office (RBCO) of the DENR whose mandate, powers and
functions  are  provided  in  Executive  Order  No.  510  and  Executive  Order  No.  816,  as
amended;
(3)        The   Manila   Bay   Coordinating   Office   (MBCO)   of  the   DENR   which   was
strengthened by virtue of DENR Administrative Order (DAO) 2011-01 to coordinate the
efforts  of the  fourteen  (14)  national  agencies  covered by  the  Mandamus  Order  of the
Supreme Court to rehabilitate Manila Bay;


(4)        The water Resources Management  Division  of the  Bureau of soils and water
Management of the Department of Agriculture (DA);
(5)        The water supply and sanitation unit of the Department of the Interior and Local
Government (DILG); and
(6)        The  Water  Quality  Management  Section  of the  Environmental  Management
Bureau (EMB) of the DENR.
(d)        Functions to be Transferred to the Department.  -The following functions of the
respective agencies, bureaus, and unites shall be transferred to the Department:
(1)        The hydrological  surveys and groundwater  monitoring function of the Mines and
Geosciences Bureau (MGB) of the DENR;
(2)        The  hydrological  surveys  monitoring  of stream  flow and  water data  collection
function of the Bureau of Design and Bureau of Research and Standards of the DPWH;
(3)        The  protection  and  conservation  of natural  wetlands  such  as  lakes,  marshes,
swamps of the Biodiversity Management Bureau of the DENR; and
(4)        The  planning,  programming,  administration,  monitoring,  management  of  the
National Sewerage and Septage Management Program (NSSMP) by the DPWH;
(5)        The flood  management  planning  and  sediment  management  function   of  the
Flood Control Management Cluster of the DPWH;
(6)        The water Resource Management Division and the water research functions of the
Soils and Water Research Division of the Bureau of Soils and Water Management under
the  DA.  AIl  soil-related  functions  shall  be  retained  under  the  Bureau  which  shall  be
renamed as the Bureau of Soils.
(e)         Support services. -The Department shall create the following support services:
(1)        The planning and policy service shall provide the Department with the capability
to  undertake  water  infrastructure  development  planning  and  programming,  and  shall
exercise the following functions:
(a)        Advise the secretary on all matters relating to water resources planning;
(b)        Assist the undersecretary for planning and policy on an   matters related to the
specific functions of the position;


(c)        Formulate   strategies   and   priorities   for   water   resources   management   and
development consistent with national development objectives,  and initiate or undertake
relevant surveys for development planning;
(d)        Develop  and regularly  update  a  comprehensive  and  integrated  National  water
Resources Management Plan and ensure its integration into existing land use plans;
(e)        Coordinate    river-basin   planning    following   the    integrated   water   resources
management framework and the river-basin approach;
(f)         Formulate or update existing River Basin Master or comprehensive plans which
includes  all  aspects  of water  management and  development  such  as water supply  and
sanitation,  irrigation,  flood  control  and  stormwater  or  urban  drainage,  drought  risk
management, water resource development systems and other public water works projects,
including phasing of implementation;
(g)        Identify,   based  on  the  river  basin  master  plan,   priority  packages   for  water
infrastructure development per river basin, including water supply, sanitation, irrigation,
flood control and stormwater or urban drainage, drought risk management, water resource
development  systems  and  other  public  works  projects,  package  project  proposals  for
funding  and  prioritize  project  implementation  and  the  allocation  of funds  and  other
resources and undertake or supervise and evaluate the conduct of feasibility studies and
project preparation thereof;
(h)        Evaluate   and   appraise   all   regional   and   inter-regional   infrastructure   water
development plans  and programs  as  to their  feasibility  and consistency with  approved
strategies and medium and long -term plans;
(i)         Gather, analyze, and organize needed statistical data and information;
¢)         Provide technical assistance related to its functions to the other services, bureaus
and the regional offices as needed;
(k)        Conduct hydrological and hydraulic surveys and assessments of surface waters;
(1)         Develop  general  criteria  and  standards  on  project  investigation,   formulation,
planning;
(in)        Develop   guidelines   and   standards   on   social   inclusion   in   water   resources
management and ensure policies, programs and plans are compliant with the gender   and
development framework of the government;


(n)        Coordinate closely with PAGASA for rainfall and other climate data which shall
be considered in the planning for water resources development and management and for
various water infrastructure; and
(o)        Perform  such  functions  and  activities,  as  may be  mandated  by  law,  which  are
necessary for the effective attainment of the abovementioned objectives.
(2)        The  Decision  support  system  service  shall provide  the  Department with  water
resource management tools and computerized decision support system that incorporates
a data management system relating to acquisition and database and model base in terms
of physical design, planning and decision models including services related to networking,
data management, and information and knowledge or leaming management systems for
administrative and non-technical support. It shall provide the Secretary timely reports on
the status of various Department projects and activities. For this purpose, it shall exercise
the following functions:
(a)        Provide the secretary the necessary data and processed information to aid in policy
and management decisions under the mandate of the Department;
a)        Publish available real-time raw water data as well as verified or validated water
data in print or electronic form using latest internet technology;
(c)        Conduct and publish in print and/or electronic form, standard data analysis such
as basic statistical analysis, trend analysis, analysis of runs, and cluster analysis;
(d)        Develop  and  continuously  update  water  resource  management,  computerized
decision  support systems  (DSS) that  incorporate  data management systems  relating to
acquisition and database, model base in terms of physical, design, planning and decision
models, and user-friendly interface such as graphical and visualization tools.
The DSS is composed of:
1) a measurement or data acquisition system;
2) information or database management system;
3) analytical and numerical    models    for    design,    planning,    decision    or   evaluation
purposes; and
4) a user-friendly interface which includes graphical interface or visualization tools.
(e)        Develop and maintain specific models to include the following:


a) long-term climatologic and weather forecasting model;
b) watershed models and river-flood plain models;
c) groundwater models and coupled to surface water models;
d) flood forecasting model for major rivers;
e) optimization-simulation management models for watershed conservation, conjunctive
surface and groundwater use, irrigation scheduling, normal and emergency operations of
multi-purpose reservoirs; and
f) water quality and ecological models.
(0         Develop  and  administer  the  management  information  system  and  knowledge
systems of the Department to:
a)  Retrieve,  process,  and monitor information  on all  projects  and  activities  in the web
portal;
b) Conduct and apply systems and process engineering, software development,  software
configuration management;
c) Develop and manage its corporate database, unified database for water industry, data
warehouse,    other   water    information    resources,    library    services    and    document
management and archiving services;
d) Develop   and   manage    its   Information    and   Communications Technology (ICT)
infrastructure   and   ICT   related-services   including   computer   networking   and   voice
communications services and data exchange, and
e)  Manage  the  literacy and training services  of the  Department  on  various     ICT  and
Knowledge   Management   (KM)   tools   and   applications,   including   information   and
knowledge management.
(g)        Perform such other related functions and activities which are necessary    for    the
effective  administration of the management information and knowledge  systems of the
Department.
(3)        The Administrative and Human Resource  service shall provide the Department
with  services  relating  to  human  resources  development,  personnel,  records,  facilities
maintenance, medical and dental, security, property and procurement services, and shall
exercise the following functions:


(a)        Advise the secretary on all matters relating to intemal administration and human
resources management;
a)        Prepare  and  implement  an  integrated  personnel  development  plan  that  shall
include provisions for merit promotions, performance evaluation, job rotation, incentive
awards systems, and health and welfare services;
(c)        Provide services related to human resource training,  education and development
including  manpower,  career planning and forecasting,  and  development of indigenous
training materials;
(d)        Develop,    establish,    and   maintain   an   efficient   and   cost-effective   property
procurement  system  and  facilities  and  coordinate  or  otherwise  interface  with  relevant
agencies, whether government or private, for the purpose of developing or upgrading the
System;
(e)        Develop,   establish,   and   maintain   an   efficient   and   effective   security   system
covering, among others, personnel, physical installations facilities, equipment, documents
and materials including the conduct of security investigations;
(f)         Coordinate with the appropriate government agencies for a more efficient conduct
of administrative processes;
(g)        Develop, establish, and maintain an efficient records system;
(h)        Provide assistance in its area of specialization to the Department
(i)         Proper, bureaus and regional and water district offices and, when requested, to the
government agencies and corporations attached to the Department; and
¢)         Perform  such  other related  functions  and  activities  which  are  necessary  for the
effective management of the resources of the Department, including its human resources.
(4)        The    Legal and Legislative Research   Service shall provide the Department with
services on such legal affairs as contract letting and litigation,legal and legislative research,
complaints and investigation,legal counselling and other matters of law, and shall exercise
the following functions:
(a)        Advise the secretary on all matters relating to legal and legislative affairs;
a)        Prepare  Department  contracts  and  legal  instruments,  review  and  interpret  all
contracts and agreements entered into by the Department and evaluate au legal proposals;
(c)        Conduct  administrative  investigation  and  the  review  of administrative  charges
against officers and employees of the Department;


(d)        Exercise functional jurisdiction over the legal staffs of Regional offices;
(e)        Provide legal assistance to the Department proper, the bureaus and regional offices
and when requested, the attached corporations;
(f)         Develop    and    prepare    the    Department's    Legislative    Agenda,    recommend
presidential  certification  of the  urgency  of priority water bills,  and  other water-related
legislation;
(g)        Coordinate and maintain linkages between and among the various offlces, bureaus,
regional offices  and attached agencies to the Department along with other government
agencies on policy matters affecting the Department's mandate in relation to legislation;
(h)        Perform liaison and networking activities  in relation to the enactment of related
laws relating to water resources issues in legislative policymaking bodies such as the Senate
of the Philippines, the House of Representatives, and the various Sanggunians;
(i)         Monitor the progress of the Department's priority or certified bills to ensure their
passage; and
a)         Perform such functions and activities, as may be mandated by law, which         are
necessary for the effective   performance of the abovementioned objectives.
(5)        The   Comptrollership   and   Financial   Management   Service   shall   provide   the
Department    with  coordinated  services  relating  to  financial  systems  and  procedures,
budget,  cash,  accounting and all financial housekeeping matters,  and shall exercise the
following functions :
(a)        Advise  the  Secretary  on  all  matters  relating  to  the  accounting  of government
expenditures and receipts, budgeting and cash management, project finances and financial
systems and procedures;
a)        Prepare  budget  proposals  and  pursue  formal  budget  authorizations,  undertake
budget execution, and prepare and submit all appropriate reports to the proper offices;
(c)        Develop  and  maintain  accounting,  financial  and  assets  management  systems,
procedures and practices in the Department Proper, Bureaus and Regional Offices;
(d)        Review  and  appraise  systems  and  procedures,  organizational  structure,  assets
management practices, accounting, and other records, reports, and performance standards
such as budgets and standard costs of the Department, bureaus, and regional offices;


(e)        Provide assistance in its area of specialization to any unit of the Department and,
when requested,  to government corporations and councils attached to the  Department;
and
(f)         Perform such other related functions and activities which are necessary for    the
effective financial management of the Department.
(6)        The Resource Regulation service shall provide the Department with services for
the  effective regulation of all water-related services  and  activities  and shall  exercise  the
following functions :
(a)        Advise the secretary on all matters relating to resource regulations;
a)        Determine,  grant  and  regulate  water  rights  for  the  appropriate,  optimal  and
sustainable use of surface and ground water;
(c)        Determine and evaluate waterworks and sewerage licenses, and submit evaluation
results to the Water Regulatory Commission for the latter's consideration in granting of
licenses;
(d)        Investigate  violations  of the  water rights  and  the  Water  Code,  and  impose  the
appropriate sanctions in accordance with existing laws, rules and regulations as well as
future rules and regulations which the Department shall promulgate;
(e)        Adjudicate water use conflicts; and
(f)         Perform  such  other related  functions  and  activities  which  are necessary  for the
effective regulation of water-related services.
(7)        The  Internal  Audit  Service  shall  regularly  conduct  a  comprehensive  audit  of
various Department activities and shall exercise the following functions:
(a)        Advise the secretary on all matters relating to management control and operations
audit;
a)        Conduct   a   performance   audit   of  the   management   and   operations   of  the
Department,  its  activities,  the  performance  of all  units,  and  determine  the  degree  of
compliance of all operating units with established objectives , policies, standards, methods
and procedures, government            regulations      and    contractual    obligations    of   the
Department;


(c)        Review   and   appraise systems   and   procedures, organizational structure, assets
management practices, accounting and other records, and performance standards such as
budgets and standard costs of the Department Proper, bureaus and regional offices;
(d)        Analyze and evaluate management deficiencies and recommend realistic courses
of action; and
(e)        Perform  such  functions  and  activities,  as  may be  mandated  by  law,  which  are
necessary for the effective performance of the abovementioned objectives.
(8)        The public Affairs service shall enhance relations with all stakeholders including
the media, for the effective dissemination of information relating to water-related issues,
including important announcements on policies and activities of the department that are
of interest to the general public. It shall ensure that women, men, elderly, and people with
disabilities  shall  be  consulted,  organized  and  take  active  part  in  all  aspects  of water
resources  development  and management  activities.  It  shall  also  lead  the  planning  and
organizing of special events, and shall exercise the following functions:
(i)         Public Awareness
1 )         Advise the secretary on matters pertaining to public affairs;
2)         Develop   and  supervise  the  implementation of comprehensible communications
programs on relevant policies, programs and plans of the Department;
3)         Produce and supervise the dissemination of communication materials in line with
the priorities of the Department and national government public information programs;
4)          Conduct public opinion and attitude surveys to identify the interests and concerns
of the stakeholders of the Department;
5)          Establish  policies  on  the  presentation  and  publication  of  the  content  of  the
communication materials for dissemination to print and broadcast media;
6)          Establish and maintain linkages with the tri-media and a presence in social media;
7)          Coordinate the conduct of interviews and news conferences;
8)         Make public announcements on matters relating to the work and activities of the
Department through the print and broadcast media, either through press releases or live
interviews;
9)         Coordinate  with  various  Department  units,   concerned  government  agencies,
trimedia and other stakeholders on matters related to the above-enumerated functions; and


10)       Coordinate with the appropriate national government agencies involved in public
information affairs.
(ii)        Promote participation
1 )          Conduct public consultations and discussions;
2)         Develop  and  disseminate  relevant  and  appropriate  materials  and  programs  for
public information and education, as well as advocacy campaign;
3)         Conduct seminars and workshops involving the LGUs and the general public on
current water issues and problems; and
4)          Conduct   capability   building   seminars   of  various   stakeholders   to   promote
meaningful participation in the Department's policy making, planning, development and
implementation of various programs and projects.
(iii)       SpecialEvents
1 )          Coordinate the organization and promotion of special events and water exhibits;
2)          Act as the focal office for all water related events; and
3)         Perform such functions and activities,  as may be  mandated by law,  which     are
necessary   for   the   effective   performance of   the abovementioned objectives.
(f)  Bureaus.  -  The  Department  shall  create  bureaus  which  shall  each  be  headed  by  a
Bureau Director. The Bureau Director shall be responsible for the efficient and effective
discharge of the functions of the Bureau concerned. The Bureau Director shall be assisted
by one (1) Assistant Director.
1)         Bureau  of Flood control and Drainage  shall plan  and  design flood control  and
drainage          structures and facilities in accordance with technical standards, guidelines
and manuals. For this purpose, it shall have the following duties and responsibilities:
a)         Formulate policy, strategies and programs on flood risk management in the context
of integrated  flood management (IFM)  which integrates  water,  land,  coastal  zone  and
multi-hazard management. In integrating land use planning and water management, the
Department shall harmonize and synthesize plans to enable the  sharing of information
between land-use planning and water management authorities.  In this regard,  a holistic
approach  shall be  adopted by making  the  IFM  a  part  of a wider risk  or multi-hazard
management  system  that  includes  earthquakes,  landslides,  fires,  tsunami,  and  other
calamities of the same gravity or nature;


b)         Integrate climate change and disaster risk reduction and management in policies
and plans;
c)          Prepare  master  plans  of  flood  management  and  drainage  in  river  basins  in
coordination with the concerned water resources region and river basin organizations ;
d)         Prepare master plans for urban drainage in cities and municipalities;
e)          Prepare feasibility studies of recommended measures in the master plans;
f)          Plan and design structural measures for flood control and drainage ;
g)         Implement  and  collaborate  with  concerned  agencies  on  the  formulation  and
adoption of non-structural measures for flood control and drainage;
h)         Patrol and investigate rivers, and monitor stream flows;
i)           Conduct  post-disaster  investigation  and  evaluation  and  damage  assessment  of
flood infrastructures after extreme events;
j)           Conduct research and development on water and sediment-related disasters;
k)          Develop design guidelines,  criteria,  and standards on flood control and drainage
structures;
1)           Provide technical assistance to other agencies, LGUs, and other stakeholders;
in)        Advise the secretary on declaring flood control areas and recommended guidelines
for flood plain management plans in these areas; and
n)         Perform such related activities which are necessary for the effective performance of
its functions.
2)         Bureau of water Quality Management shall supervise and exercise control over all
aspects of water quality management to ensure the sustainability of the country's water
resources and the protection of the environment. It should take into account proper and
integrated  treatment  of freshwater  and  wastewater  within  the  whole  process.  For this
purpose, the Bureau shall exercise the following functions:
a)         Establish water quality guidelines for freshwater and coastal or marine waters as
basis for classifying water bodies in the country. Specifically, develop water quality indices
or composite metrics to measure the quality status and health of natural water bodies in
relation to ecological integrity and function;
b)          Establish effluent standards for point discharges to receiving bodies of water;
c)          Establish intemationally accepted procedures for sampling and analysis;
d)         Prepare an integrated water quality management framework;


e)         Prepare  the  ten-year  water  quality  management  plans  for  each  water  quality
management area as part of the River Basin Master
f)          Plans and in support of the NWRMP;
g)         Classify groundwater  sources  and  prepare  a national  groundwater vulnerability
map;
h)          Classify   or   reclassify   all   water   bodies   according   to   their  beneficial   usages
using   the established water quality guidelines established;
i)          Issue permits, clearances, and similar instruments pursuant to the clean water Act
of2004;
j)           Collect the wastewater discharge fees for all permittees;
k)         Monitor the compliance of water discharge permittees with the effluent standards;
1)          Regularly  monitor the  water  quality  of major water bodies  in  the  country  and
analyze the data to identify possible sources of pollution;
in)        Issue  notices  of violations  and/or  cease  and  desist  orders  for  those  found  in
violation;
n)         File  the  needed  cases  against  violators  with  the  water  pollution  Adjudication
Board (WPAB);
o)          Serve as secretariat of the WPAB; and
p)         Perform  such  functions  and  activities,  as  may  be  mandated by  law,  which  are
necessary for the effective performance of the abovementioned objectives.
3)         A  Water  Resources  Regional  Office  (WRRO)  shall  be  organized  per  water
resources region and shall be responsible for implementing          the      mandates,  powers
and duties of    the Department at the field level,  except for policymaking which will be
vested solely in the Department. The formulation of the master plan for the nearby river
basins such as the Pasig-Marikina-Laguna Lake-Cavite, shall be the responsibility of the
Department. Each WRRO shall perform the following duties and responsibilities:
a)         Formulate orupdate andcoordinate the riverbasin masterplans   for  river  basins
within      its     jurisdictions     ensuring  consistency  with  the  National  water  Resources
Management Framework Plan;
b)         Advocate and strongly support the creation and functioning of multi-stakeholder
river basin organizations (RBOs) and serve as the secretariat of the said RBOs;


c)          Undertake  and  evaluate  the  planning,  design,  and  work  supervision  functions
of the Department for the water infrastructures within the region;
d)         Ensure  the  implementation  of laws,  policies,  programs,  rules  and  regulations
regarding  the  abovementioned  infrastructure  as  well  as  public  and  private  physical
structures;
e)          Provide technical assistance related to the water-related functions of other agencies
within the region especially the local government;
f)           Coordinate  with   other  departments,   agencies,   institutions   and  organizations,
especially local government units within the region in the planning and implementation
of the river basin master plans;
g)          Conduct consultations with the local communities, take
h)         appropriate measures to ensure that the services of the Department are responsive,
and recommend such appropriate actions as may be necessary; and
i)          Perform  such  functions  and  activities,  as  may be  mandated by  law,  which  are
necessary for the effective performance of the abovementioned objectives.
The  Department shall retain existing Project Management Offlces as may be required,
which  shall be under the  supervision  and  control  of the  appropriate  Water Resources
Regional  Office  unless  otherwise  determined  by  the  Secretary  for  reasons  of  supra-
regional scope, magnitude and multifunctional coverage.
Each Water Resources Regional Office shall be headed by a Water Resources Regional
Director who shall be responsible for efficiently and effectively carrying out the duties and
responsibilities of the Office.  Towards this end,  the Water Resources Regional Director
shall exercise functional and administrative supervision over all units within the region
and is authorized to commit resources and assign personnel to integrated regional water
resources management, water supply and sanitation management, and flood control and
flood  risk  management  initiatives.  The  Water  Resources  Regional  Director  shall  also
perform such other related duties and responsibilities as may be assigned or delegated by
the Secretary or as may be required by law.
The  Water  Resources  Regional  Director  shall  be  assisted  by  two  (2)  Assistant  Water
Resources Regional Office Directors who shall exercise supervision over ( 1) the planning,


project  design  and  evaluation  function  and  (2)  technical  assistance  to  the  River  Basin
Organizations within the water resources region,
SEC. 14. Water Pollution Adiudication Board. -There ±s hereby created a Wa,tor Pof]whon
Adjudication Board under the office of the secretary. The Board   shall   be   composedof
the   Secretary   as   Chairperson,     two  (2)  Undersecretaries  may  be  designated  by  the
Secretary,  the  Director  of  Water  Quality  Management  Bureau,  and  three  (3)  other
representatives from other stakeholders to be designated by the Secretary as members.
The  Board  shall  assume  the  powers  and  functions  of the  National  Pollution  Control
Commission with respect to the adjudication of water pollution cases under Republic Act
No.  3931  entitled,  An  Act  Creating  The  National  Water  And  Air  Pollution  Control
Commission, Presidential Decree 984 entitled, Providing For The Revision Of Republic
Act No. 3931, Commonly Known as the Pollution Control Law, And For Other Purposes,
particularly with respect to Section 6 (e, f, g, j, k) and Republic Act No. 9275. The Bureau
of Water Quality Management shall serve as the Secretariat of the Board. These powers
and functions may be delegated to the field officers of the Department in accordance with
rules and regulations to be promulgated by the Board.
CHAPTER Ill
INTERDEPARTRENTAL RELATIONS AND INSTITUTI0NAI,
ARRANGERENTs OF Tlm DEPARTRENT
SEC.    15.   Interf uce and Institutional Arrangements with other Agencies. -
(a)        The Department of Health (DOH) shall continue to have primary authority and
responsibility for setting and enforcing drinking water quality standards. The Department
shall coordinate with the DOH in this aspect, and shall ensure consistency of standards
and targets, as well as the compliance of permittees with mandated standards;
a)        The Department of Environment and Natural Resources (DENR) shall continue
to have primary authority and responsibility for protecting the environment and managing
the country's watersheds;
(c)        The Department of Energy (DOE) and the National power corporation (NPC)
shall continue to have primary authority and responsibility for establishing and operating


hydropower  plants,  but  shall  ensure  that  hydropower  plant  development  plans  are
consistent with the National Water Development and Management Plan;
(d)        The Department shall coordinate with the DA to ensure agricultural development
that reduces long-term pollution for surface water and groundwater, and agricultural and
industrial economic development that employs water efflciency, water recycling or reuse,
and the appropriate treatment of wastewater;
(e)        The  Department  shall  coordinate  with  the  National  Disaster  Risk  Reduction
Management Council (NDRRMC) to ensure that its plans and designs for flood control,
flood risk management and drought risk management are aligned with the objectives and
plans of the Department;
(f)         The  Department  shall  coordinate  with  Climate  Change  Commission  (CCC),
Philippine       Atmospheric, Geophysical   and      Astronomical              Services
Administration (PAGASA), and National Mapping and Resource Information Authority
(NAMRIA)  for  scientific  studies,  integrated  surveys,  mapping,  charting,  and  decision
support systems;
(g)        The  Department  shall  coordinate  with  the  Department  of Tourism  (DOT)  on
recreational use of water resources;
(h)        The Department shall coordinate with the philippine Reclamation Authority and
economic zone authorities on water resources development and water requirements within
reclamation areas and economic zones, respectively; and
(i)         The  Department  shall  coordinate  with  relevant government  agencies,  including
local government units (LGUs),  with respect to  development projects  and shall ensure
cross-cutting collaboration between and among all water subsectors and facilitate inter-
agency   subsector   coordination,   strategic   development,   planning,   monitoring   and
provision  of  technical,  institutional  and  financial  capacity  building  support  to  their
different stakeholders at the water subsector level.
SEC.  J6. Ivafr.o#a/ Wrafcr Sector Po/f'o/ Board. - The National Water Sector Policy Board
(NWSPB)  shall be created and  shall be headed by the  Secretary  of the  Department of
Water  Resources  with  the   Secretary  of  the  National  Economic  and  Development
Authority as the Vice-Chairperson, and the Secretaries of the DOH,  DILG, DOE, DA,
Department of    Social Welfare and Development; DPWH; Department of Budget and
Management (DBM); Office of the President, and DENR, and National Commission on


Indigenous  Peoples  as  members.  The  Department  shall  provide  personnel  to  serve  as
Secretariat to the Board.
SEC.  17.  Powers and Functions Of the National Water  Sector Poliey Board. -The RTV\JSPB
shall  perfomi  policymaking,   coordination,   integration,   supervision,   monitoring  and
evaluation functions, and shall have the following responsibilities:
(a)        Approve the NWRMP which shall serve as a principal guide to water management
efforts in the country and shall be reviewed every five  (5) years interval,  or as  may be
deemed necessary, in order to ensure its relevance to the times;
a)        Provide  overall  policy  direction  and  recommend  policies  on  water  resources
requiring Presidential decision;
(c)        Advise the president on the status of water management and supply, recommend
to the President the declaration of a state calamity in areas affected by water supply, and
submit proposals to restore normalcy in the affected areas;
(d)        Ensure a multi-stakeholder participation in the development, updating, and sharing
of information  system  as  policy,  planning  and  decision-making  tools  consistent  with
IWRM.
SEC.18. Transif er Of Rights and Obligations. -The Department shall, by virtue of this Act,
be subrogated to all the rights and assume all the obligations of the government agencies
and  units  whose  powers  and  functions  have  been  subsumed,  absorbed,  transferred  or
attached  to  the  Department  in  accordance  with  the  rules   and  regulations   of  the
Commission on Audit, and the Civil Service Commission, and other applicable laws. The
transfer of powers and functions as herein provided shall take effect within six (6) months
of the effectivity of this Act. As such, all affected agencies, offices, units shall continue to
function under their present mandates.
CHAPTER IV
WATER REGULATORY COMNISSION
SEC.J9.  W'l¢fgr Rcg#/¢fory  Cofflfflf.ssf.o#.  -There  is  hereby created  and  established as  an
independent,   quasi-judicial  regulatory  body  to  be  known  as  the  Water  Regulatory


Commission, hereinafter referred to as the Commission, which shall be organized within
one hundred twenty (120) days after the effectivity of this Act.
The Commission shall be placed under the administrative supervision of the Department
as an attached agency.
The Commission shall have a Board of Commissioners, and shall be vested with powers
and functions, as conferred and set forth hereunder.
£EC.  20.   7lfec  Rcg#/¢fory  U#i'ts.  -  The  regulatory  units  of the  Commission  shall  be
composed of the central regulatory unit and the regional regulatory units.
The economic regulatory units and functions of the MWSS, NWRB,  LWUA,  SBMA,
PEZA,  and  TIEZA  are  hereby  transferred  to  the  Commission,  and  shall  collectively
comprise  its  central  regulatory  unit  for  water  supply  and  sanitation  services  that:  (a)
provide  services  to  more  than  one  province;  and  (b)  are  owned,   operated  and/or
maintained by special economic zones and Metro Manila concessionaires.
The regional regulatory units shall be established by the Commission in accordance with
this Act and the rules, regulations, guidelines,  and standards that the Commission shall
issue.
SEC. 21. Powers and Functions Of the Commission. -The overall a:uthorky a,nd powers o[
the Commission shall cover and apply to all service providers, whether private or public,
providing  or  intending  to  provide  levels  11  &  Ill  water  supply,  including  suppliers  to
subdivisions  and  /or other  service  providers,  sewerage,  and/or  septage  treatment  and
disposal services for domestic, residential, institutional, industrial or commercial use.
The Commission shall exercise the following powers and functions:
(a)  Issue  and  promulgate  rules,  regulations  and  guidelines  as  may  be  necessary  to
implement and enforce its powers and functions under this Act;


a) Promulgate and enforce just and reasonable technical standards,  classifications  and
measurements of service;
(c) Establish rules and regulations to monitor, avoid, and provide remedies for any market
power  abuse  or  anti-competitive  or  discriminatory  act  or behavior  by  or  against  any
participant  in  the  water  supply  and  sanitation  sector.  Upon  finding  that  a  market
participant has engaged in, or has fallen victim to such act or behavior, the Commission
shall act to stop or redress the same.  Such remedies may, without limitation, include the
imposition  of  price  controls,   issuance   of  injunctions,  requirement  of  divestment  or
disgorgement  of excess  profits,  invalidation  of contracts  and  imposition  of fines  and
penalties pursuant to this Act.
(d)  Adopt  and  require  that  books,  records,  and  accounts  be  kept  and  maintained  in
accordance with the prescribed uniform accounting system;
(e)  Fix  and  determine  proper  and  adequate  rates  of  depreciation  of properties  and
equipment used in water supply and sanitation services;
(f) Impose and collect annual levies determined as a percentage of gross revenue accruing
in  relation  to  the  licensed  activities,  and  reasonable  fees  and  surcharges  as  may  be
necessary for achieving the purposes, powers and functions of the Commission;
(g) Require the submission reports of finances and operations, verified under oaths by the
owner or president and secretary of the board of the licensee;
(h) Determine and require the monitoring and submission of such data, statistics and other
information from the regulatory units and any or all licensees as may be necessary for the
effective and efficient exercise of its duties, functions, powers and responsibilities;
(i) Investigate,  "of#  propfo   or   upon   a   written   complaint,    any   matterconceming
the  operation  of  the  service  and  issues  on  price  manipulation  and  anti-competitive
behavior;
0) Impose penalties and fines against any licensee or against its owners, directors, offlcers,
agents  or  representatives  for  any  violation  of this  Act  or  of the  license,  order,  rule
regulation or requirement issued by the Commission;
(k) Require any licensee to pay the actual expenses incurred by the Commission in any
investigation if it shall be found that a licensee violated any provision of this Act or of the
license, order, rule regulation or requirement issued by the Commission;
(1) Advise,  apprise  and coordinate with other relevant agencies of the national or local
government on any matter relating to water supply and sanitation services;


(in) Deputize agents, whether from the public or private sector, to assist in the performance
of any of the powers and functions of the Commission;
(n) Appoint an interim or temporary management committee upon appeal and after due
hearing, to ensure continuity of service in case a licensee fails to meet conditions of the
license  and  the  concerned  Regulatory  Unit  fails   or  refuses  to   appoint  an  interim
management committee as provided in the following section.
(o) Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, with
suitable qualifications and experience, as necessary;
(p) Exercise original and exclusive jurisdiction over all cases contesting rates,  fees, fines
and penalties imposed by the regulatory units in the exercise of their powers,  functions
and  responsibilities,  as  provided  under this  Act,  and  over all  cases  involving  disputes
between  and  among  participants  or  stakeholders  in  the  water  supply  and  sanitation
services; and
(a) such other incidental powers and functions as may be necessary to attain the objectives
of this Act.
SEC.  22.  Powers  and  Functions  Of the  Regulatory  Units.  -The regula;tory  units  Of the
Commission sham have the following powers and functions:
(a)        Issue licenses authorizing the operation of water supply and sanitation services in
any specifled area or areas within the Philippines;
a)        Impose fines, charges and other penalties upon any provider and/or its offlcers and
stockholders who shall fail or refuse to register or obtain a license prior to operation or
commencement of business, as provided hereunder;
(c)        Review,   determine,   fix,   and   approve,   consistent  with   the   rules,   guidelines,
procedures and methodologies which the Commission shall provide, proposed water and
sewerage and septage management tariffs,  rates and charges that licensees may impose
upon their consumers;
(d)        Appraise and value property and equipment used by licensees in providing water
supply and sanitation services;
(e)        Enforce   technical,   financial,   and   other   performance   standards   set   by   the
Commission for licensees or utilities;
(f)         Respond to consumer complaints and ensure the adequate promotion of consumer
interests and investigate owof# z7#opz.o price manipulation and anti-competitive behavior;


(g)        Investigate  accidents  directly  or  indirectly  arising  from  or  connected  with  the
maintenance or operation of the service, and make such order or recommendation as the
public interest may warrant;
(h)        Require the review and/or approval of contracts or agreements that may impact on
the tariff and rates of service provision entered into by service providers upon petition or
"of# prapz.a where in its determination public interest so dictates;
(i)         Require  the  submission  of reports,  plans,  and  other  documents  that  define  the
performance    targets    of    the    licensees    or    utilities,  and    regular accomplishment
reports;
a)         Impose  and  collect  annual  levies  determined  as  a  percentage  of gross  revenue
accruing in relation to the licensed activities, and reasonable fees and surcharges as may
be necessary for achieving the purposes, powers, and functions of the regulator;
(k)        Conduct benchmarking and monitor the performance of licensees or utilities under
their jurisdiction, and publish reports detailing the results thereof, as may be necessary or
required by the Commission;
(1)         Amend,  modify,  suspend,  or revoke any license issued by them,  after due notice
and hearing, on any of the following grounds:
(1)        when the facts and circumstances on the strength of which the license was issued
have been materially misrepresented or have materially changed;
(2)        where  the  licensee  has  failed  to  meet  or  comply  with  terms,  conditions,  and
performance targets,  including but not limited to service expansion, that may have been
set in the license;
(3)        where  the  licensee  is  found  to  be  manifestly  inefficient  in  the  operation  of or
provision of water supply and sanitation services in its area; or
(4)        when  the  licensee  thereof has  violated  or  willfully  refused  to  comply  with  any
order, rule or regulation of the Commission or any provision of this Act;
(in)      Appoint an interim management committee to ensure continuity of service in case
a licensee fails to meet the conditions of the license; and
(n)        Submit performance plans and reports as required by the commission.


SEC. 23. Composition Of the Water Regulatory Commission. -
(a)  The  Commission  shall be  a  collegial  body  composed  of five  (5)  full-time  members
consisting  of a  Chairperson  and  four (4)  members,  who  shall  all  be  appointed by  the
President  of the  Philippines.  All  members  of the  Commission  must  be  citizens  and
residents  of the  Philippines,  at  least  thirty  five  (35)  years  of age,  and  of good  moral
character, of recognized integrity and competence in the field of law, business, commerce,
finance,  accounting or public administration,  water or utility economics,  management,
physical or engineering services, hydrology and other related services, with at least three
(3)  years  of actual  and  distinguished  experience  in  their  respective  fields  of expertise:
Provided, That out of the four (4) members of the Commission, at least one (1) shall be a
memberofthePhilippineBarwithatleastten(10)yearsofexperienceintheactivepractice
of law, and at least one (1) shall be a certified public accountant with at least ten (10) years
of experience in active practice.
(b)  The  term  of offlce  of each  member  of the  Commission  shall  be  seven  (7)  years:
Provided,  That among the  members  first  appointed,  the  Chairperson  shall  serve  for a
period of seven (7) years, two (2) members shall serve for five (5) years and the other two
(2) members shall serve for three (3) years:  Provided further,  That any member   whose
term has expired as specified herein shall serve as such until a successor   shall   have   been
appointed       and  qualified:     Provided  furthermore,  That  any  appointment  to  fill  a
vacancy in the Commission arising from death, removal, retirement or resignation shall
be made only for the unexpired term: Provided, finally, That in no case shall any member
serve for more than seven (7) years in the Commission.
(c) The Commission shall meet as often as may be necessary on suck day or days as the
Chairperson may fix. The presence of at least three (3) members of the Commission shall
constitute a quorum,  which shall be necessary for the transaction of any business.  The
afflrmative vote of majority of the members of the Commission where a quorum is present
shall be necessary for the adoption of any order, resolution, decisions, or other act of the
Commission in the exercise of its quasi-judicial functions: Provided, That in promulgating
rules, regulations,  guidelines    and    in    exercising    its    quasi-legislative    functions,  an
affirmative vote of three (3) members shau be required.


(d)  The  Chairperson  of the  Commission  shall  exercise  general  executive  control  and
supervision  over  the  Commission  and  its  members,  staff  and  persormel,  agents  and
representatives.  Within three (3) months from the creation of the  Commission and the
appointment ofau Members of the commission,    the    Chairperson    shall    determine
and   establish   the organizational structure and plantilla positions necessary to carry out
the powers and functions of the Commission, including those of the central and provincial
regulatory units subject to the review and approval of the DBM.
The  plantilla  positions  of the  Commission  shall  be  filled  by  regular  appointments  in
accordance   with Civil Service laws, rules, and regulations. Members of the Commission
shall enjoy security of tenure and shall not be suspended or removed from office except
for just cause as specified by law.
(e) The Chairperson and members of the Commission or any of their relatives within the
fourth  civil  degree  of consanguinity  or  affinity,  legitimate  or  common  law,  shall  be
prohibited from holding any interest whatsoever, either as investor, stockholder, officer or
director, in any company or entity engaged in provision of water supply and distribution,
septage management and sewerage services and must, therefore,  divest   through sale or
legal disposition of any and all interests in the water sector upon assumption to office.
£EC.  24.  Sccrt?f¢rf.af a/ffec  Co"owj.ssr.o#.  -The  Commission  shall  establish  a  Secretariat
which shall provide the  Commission with technical  and  support services  including the
following:
(a)        Provide the necessary technical inputs and secretariat support to the commission
to facilitate the conduct of its functions;
(b)        Coordinate with Regulatory units to ensure proper implementation of the rules,
regulations and guidelines promulgated by the Commission;
(c)        Monitor  and  assess  activities  of the  Regulatory  Units  vis-a-vis  their  respective
annual performance plans and targets;
(d)        Maintain a database on the water supply and sanitation subsector; and
(e)        Coordinate     with     other     relevant     agencies     of    the     national     or     local
government on any matter relating to water supply and sanitation.


SEC. 25. E#ccofr'tJc Df'recfo/. - The Commission shall appoint an Executive Director who
shall  head  the  Commission  Secretariat,  keep  and  maintain  the  official  records  of the
Commission, render a report on the proceedings of the Commission, and administer oaths
in all matters falling within the jurisdiction of the Commission.
The  Executive  Director  shall  be  responsible  for  the  effective  implementation  of  the
policies, plans, programs, rules, regulations and directives of the Commission; coordinate
and supervise the activities of the different operating units under the Commission;  and
perform such functions as may be assigned by the Chairperson and/or other members of
the Commission.
SEC. 26. Compensation and Other Emoluments. -The compensalon o[ the members o[ the
Commission  and  its  staff shall  conform  to  provisions  of Republic  Act  No.  6758  as
amended, otherwise known as the Compensation and Position Classification Act of 1989.
CHAPTER V
REGISTRATION AND LICENSING
SEC. 27. Registration and Licensing Of All Water Supply and Sanitation Services. -A;Il wa;tel
supplyandsanitationserviceproviders,includingbulkwatersuppliersandthoseproviding
services to subdivisions and other service providers,  shall register with the Commission
and, subject to such rules, guidelines, procedures and other issuances of the Commission,
obtain a license to operate from the appropriate regulatory units.
The  Commission shall ensure that the grant and revocation  of licenses  are  carried out
fairly,  transparently,  and  without  discrimination.  Issuances  of the  Commission  shall
specify, among others, the qualifications, requirements, and procedure for the grant and
revocation   of  licenses   including   the   standards   and   performance   targets   that   shall
continuously be complied with to keep the licenses valid.


Unless otherwise provided in this Act or by the Commission, no public water supply and
sanitation service provider shall commence  or conduct the business  of providing water
supply and sanitation services without first obtaining a license.
Concession  agreements   and  other  contracts   for  water  supply  provision  and  water
sanitation  and  treatment  services  currently  existing  shall  remain valid  and  enforceable
unless  otherwise  terminated,  after  due  notice  and  hearing  for reasons  provided  in  the
existing terms and conditions under the concession or service agreement or contract,  or
when  invalidated  by  the  Commission,  after  due  notice  and  hearing,  where  national
security, national emergency or public interest so dictates.
SEC 28.  Co#df.fr.oar a/If.ce#sc. - The Commission or the concerned regulatory unit, may
impose such conditions on the licensee as it may deem necessary, such as:
(a) Tariffs, rates and charges that may be imposed from its customers or consumers;
a) Term fixing the duration of the privilege;
(c) Grounds for modification, suspension or cancellation of the License;
(d) Minimum technical performance and service level standards;
(e) Expansion targets and service level improvements over time;
(f) Restrictions or conditions for transferability of the business or controlling interest in the
business;
(g) Reportorial requirements and obligations of the grantee;
(h)  Submission to annual performance audit by the Commission or its  duly authorized
representative(s).
The Commission shall specify the requirements  and procedure for existing holders of a
Certificate   of  Public   Convenience   (CPC),   Certificates   of  Public   Convenience   and
Necessity  (CPCN)  issued  by  NWRB,  or  Certificate  of Conformance  (CoC)  issued by
LWUA, to convert their existing certificates into licenses to operate in accordance with
Sec. 27 herein.
All existing providers of water supply and sanitation services without a legal and valid
Certificate of Public Convenience,  Certificate  of Public  Convenience and Necessity,  or


Certificate  of Conformance  shall register with the  Commission and apply  for a license
within six (6) months from the effectivity of this Act.
SEC. 29. Rights and Duties Of Licensees. -
(a) Any person granted a license under this Act shall have the obligation to ensure that
licensed activities are conducted to further public interest and, in particular:
(1)        Foster  the  maintenance  and  development  of efficient,  coordinated,  and  viable
operation of their licensed activities;
(2)        Ensure that their water supply and sanitation services are provided in a diligent,
conscientious and workman like manner,  in accordance with applicable laws rules and
regulations issued by the Commission and the generally accepted standards and practices
of the water supply and sanitation industry; and
(3)        Comply  with  drinking  water  quality  requirements  and  standards  that  may  be
established by the Commission.
a) Any person granted a license under this Act shall, to the extent allowed by law and
specified  in  the  license,  has  the  right  to  acquire  or  lease  land,  lay  or  repair  water  or
sanitation main lines and other relevant facilities in public ways to fulfill the terms and
conditions under the license.
(c)  Subject  to  any  condition  or  limitation  laid  down  in  the  license,  a  licensee  may
discontinue water supply and sanitation services to a customer if such customer defaults
in the payment of fees due to the licensee  for the water supplied  or sanitation  services
provided, or for acts ofpilferage pursuant to Sections 8, 9,10, and 11 of Republic Act No.
8041, otherwise known as the Water Crisis Act of 1995.
(d)  Any license  issued under this  Act  shall  contain  provisions  designed to  ensure  that
licensees:
(1)        Publish the Tariff and other charges  approved by and the terms  and conditions
imposed by the Commission for the provision of water supply and sanitation services;
(2)        Prepare, within three (3) months from the issuance of a license, in consultation with
its  customers,  a  Customer  Service  Code  specifying  the  manner and procedure  for:  (a)
metering, billing,  and collection of the licensee's  approved tariff and  other charges;  (b)


disconnection  or suspension  of service  in  case  of non-payment  of tariffs  and/or  other
charges, or acts of pilferage; and (c) recommendation and recovery of arrears in tariffs and
other charges ;
(3)        Maintain   financial  accounts  in   accordance  with  the   manner  and  procedure
specified in the license and as may be required by the Commission; and
(4)        Maintain and upon request by anyone during regular offlce hours, promptly make
available for scrutiny and inspection such data, statistics and other information, as may be
required by the Commission.
SEC. jo. Sc#I.#g ra#jff, Rafgs, a#d Offecr C#arges. -Regulatory units shall establish tariffs,
rates and other charges which are fair and reasonable, and ensure economic viability and
a fair return on investments.
Tariffs, rates and charges shall be based on and consistent with a rate-setting methodology
that the Commission shall, after due consultation, define and publish, taking into account
the following, among others:
(a)        Reasonable  and  prudent  capital  and  recurrent  costs  of  providing  the  service
including a reasonable rate of return on capital;
a)        Efficiencyofthe service;
(c)        Incentives for enhancement ofefficiency;
(d)        Willingness to pay of the customers/consumers;
(e)        Equity considerations; and
(f)         Administrative simplicity.
Tariffs,  rates,  and  charges  set  by  the  regulatory  units  shall  be  presumed  valid  and
reasonable unless a protest or contest is filed with the Commission.
SEC.i/.  Df.reck Access.  -Fifty-one  (51)  percent  of the  registered  water  consumers  in  a
municipality,  city  or province  may petition  for  direct  access  to  water from  any  water
service  provider  subject  to  concurrence  by  the  service  provider  and  approval  by  the
Commission.  The Commission shall promulgate rules and procedures for this mode of
service.


SEC.    32.  Innovative  Schemes  to  Improve  Efficiency  and  Management  of Systems.  -T:Ice
Commission shall promote innovative schemes such as the consolidation or integration of
water supply and sanitation services, or providers in the same service area, where it shall
result in improved efficiency, service expansion and lower costs.
To this end, the Commission shall establish and issue such rules and guidelines as may be
necessary  to  (a)  create  incentives  to  encourage  efflciency  and  service  expansion;  (b)
establish the  standards and targets  that  service providers  are required  to  meet;  and  (c)
define the fines and penalties that shall be imposed for failure to meet such standards and
targets.
CHAPTER VI
QUASI-JUDICIAL FUNCTloNS oF Tlm CoMMISsloN
SEC. jj. Proceed;.#gs jBc/o„ £fec Cofflfflf'ssf.o#. -For the purpose of any investigation, inquiry
or proceeding, the Commission shall:
(a)        Issue subpoena duces tecum and subpoena ad testificandum;
a)        Appoint hearing officers to hear and receive evidence on behalfofthe commission;
(c)        Cite any person or party for contempt for refusal to appear, testify, or comply with
an order of the Commission on any matter that is the subject of investigation, inquiry or
proceeding before the Commission.
SEC. 34. Orders and Decisions Of the Commission. -ALny order, resdrwlron, or dec;isions Of
the Commission shall be promulgated promptly, expeditiously, reasonably, and in writing,
and shall state clearly and distinctly the facts and law on which it is based.
The Commission shall publish and make available for public inspection, all decisions and
final orders in the adjudication of contested cases or applications.
SEC. 35. Appeals Procedure and Prohibition Against Injunction. -
(a)        The orders, rulings, and decisions of the commission are final and executory unless
appealed to the Court of Appeals within fifteen (15) days from receipt of notice of such
order, ruling or decision: Provided, That orders, rulings, and decisions of the Commission


approving tariffs, shall be immediately executory and may be suspended only upon appeal
and filing of a bond, in an amount to be flxed by the Commission, to answer for damages
occasioned by the suspension or stay of execution of such orders, rulings, and decisions.
a)        No injunction may be issued by any court or administrative agency to restrain any
proceeding before, or the implementation or execution of any order, ruling, or decision of
the  Commission,  except on the basis  of a question of law brought before the  Supreme
Court on certiorari.
(c)        Any act or decision of the commission shall not be invalidated merely because of
a defect or irregularity in, or in connection with, the appointment or vacancy in the Offlce
of the Chairperson or any other member of the Commission.
CRAPTER VII
INTERDEPARTRENTAL RELATIONS OF TIH C OMNISSI0N
SEC. 36. Interface with Other Sector Regulators. -
(a)        The DENR shall continue to exercise primary jurisdiction over programs aimed at
protecting the environment and the quality of water sources from waste and pollution, and
shall  promulgate  rules,  regulations,  and  standards  in  this  regard.  The  Department  of
Health (DOH) shall continue to exercise primary jurisdiction over the determination and
enforcement of standards for quality drinking water and sanitation.
a)        The commission shall coordinate with the:
(1)        DOH  to  ensure  that  the  standards  and  targets  for  quality  drinking  water  and
sanitation are consistently complied with;
(2)        LGUs for development projects relating to water supply and sanitation; and
(3)        Department ofpublic works and Highways for flood control and harnessing and
impounding of water.
SEC. 3 7. Transfier Of Rights and Obligations. -The Commission shall, by virtue of this Act,
be  subrogated  to  all  the  rights,  and  assume  all  the  obligations,  of the  Water  Utilities
Division of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory units
of all special economic zones, and all other government agencies and units whose powers
and functions have been transferred to the Commission.


The transfer of powers  and  functions to the  Department  of the  concerned  agencies  as
herein provided for, shall be deemed completed within six (6) months after the effectivity
of this  Act.  The  transfer  of powers  and  functions  shall  include  all  applicable  funds,
personnel, records, property and equipment, as may be necessary.  The same shall apply
to agencies which have been attached to the Department by virtue of this Act.
All  agencies  transferred,  subsumed  and  attached to  the  Department,  shall  continue  to
function under their present mandates  until  the  six-month transition  period  mandated
under this Act shall have lapsed. The heads of the affected agencies shall continue to serve
until replaced.
All rights and obligations of the affected agencies are hereby transferred to and assumed
by the Commission, and shall be acted upon in accordance with the rules and regulations
of the Commission on Audit and other pertinent laws, rules, and regulations.
SEC.  38. Absorption or Separation from Service Of Em|)loyees Of the  Subrogated Agencies. -
The current employees of the Water Utilities Division of the NWRB, the regulatory offices
of MWSS and LWUA, the regulatory units of all special economic zones, and all other
government agencies and units whose powers and functions have been transferred to the
Commission shall enjoy seourity of tenure, and shall be absorbed by the Department, in
accordance  with  their  stafflng  pattern  and  the  selection  process  as  prescribed  under
Republic Act No. 6656 or the Government Reorganization Law.
Employees opting to be separated from the service as a consequence of the consolidation,
and reconstitution under the provisions of this Act shall, within one (1) month from their
separation or phase out from the service, receive separation benefits in accordance with
existing laws, and those who are qualified to retire shall be allowed to retire and be entitled
to all benefits under existing retirement laws.
SEC. j9.  W'l¢fer T"sf F##d. - There is hereby created a Water Trust Fund in the Bureau
of Treasury. All non-tax revenues,  including raw water pricing, permit fees, registration
fees, supervision and regulation enforcement fees, filing fees, testing fees, and other service
income from the use of water resources shall be remitted to the Water Trust Fund.  The


trust fund shall be accounted separately from the govemment's general revenues and shall
be automatically appropriated to the Department.  Proceeds from the trust fund shall be
utilized   for  water   development,   water   sanitation   and   waste   water   treatment   and
management, and water sustainability programs and projects authorized under this Act:
Provided, That a maximum of ten percent (10%) of the total income generated from raw
water  extraction  shall  be  given  as  share  of the  concerned  local  government  unit  or
indigenous peoples  (IP) community who  own the  specific areas or land where the raw
water was sourced.
CHAPTER VIII
FINAL PROVISIONS
SEC.  40.  Applicability Of Ease  Of Doing Business Law. - The prescITtoed processtrL8 t:rrne
provided under Section 9 (b) of Republic Act No.11032, otherwise known as the Ease of
Doing  Business   and  Efficient  Government   Service  Delivery  Act  of  2018,   shall  be
applicable  to  all  agencies  and  LGUs  covered under this  Act particularly  on  accessing
government services.
£EC.  4J.  rr¢us!.fory ProtJj.sf.o#s.  -  Performance  audit  of all  water-related  agencies  and
institutions,   including   LWUA   and   water   districts,   MWSS,   MWSS-RO   and   its
concessionaires,   LGU-run   utilities,   Tourism   Infrastructure   and   Enterprise         Zone
Authority, Philippine             Economic     Zone     Authority,     Bases     Conversion     and
Development Authority,  Subic Bay Metropolitan Authority,  DILG,  and NIA,  shall be
conducted by the Department.
SEC. 42. ,42p#aprj.af!.o#s -The amount necessary to cover the initial implementation of this
Act shall be charged against the currents year's appropriations of the agencies and offlces
transferred  and  subsumed  by  the  Department  and  the  Commission  in  the  General
Appropriations  Act.  Thereafter,   such  sums  as  may  be  necessary  for  the  continued
implementation of the Act shall be included in the annual GAA.


SEC. 43. Implementing Rules and Regulations . -Within one handred eighty (180) days from
the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in consultation
with  concerned  government  agencies,  the  Presidential  Legislative  Liaison  Office  shau
promulgate rules and regulations for the effective implementation of this Act.
£EC. 44. Scp¢#¢bf./dy CJausc. - If any reason, any portion or provision of this Act shall be
held  unconstitutional  or  invalid,  the  remaining  provisions  not  affected  thereby  shall
continue to be in full force and effect.
SEC. 45. Repealing Clause. -
(a)        The following provisions are hereby repealed:
1)          Section 3 (h) and section  12 on the provision with respect to fixing of water rates
and sanitation service fees,  Section 3  (n)  on the provision with respect to regulation of
waterworks and deep wells, and Section 3 (p) on the provision with respect to regulation
of waterworks  and sanitation systems  in privately owned subdivisions  of Republic Act
6234 entitled, An Act Creating The Metropolitan Waterworks And Sewerage System And
Dissolving The National Waterworks And Sewerage Authority, And For Other Purposes,
as amended.
2)         Title Ill on Local water utilities Administration Law of presidential Decree No.
198 otherwise known as the Provincial Water Utilities Act of 1973, as amended by Letter
of Instruction No. 700 -Providing Measures To Control And Regulate Increase In Water
Rates, Letter of Instruction No.  744 -Relative To Reliable Water Supply At Reasonable
Rates In The Countryside, Executive Order No.  124,  30 January  1987 -Reorganization
Act of the Ministry of public Works and Highways, Executive Order No.123, 30 January
1987 -Reorganization Act of Ministry of Social Services and Development.
3)          Republic   Act   No.   3601   as   amended   by   Presidential   Decree   No.   552   and
Presidential  Decree  No.   1702  pertaining  to  the  creation  of  the  National  Irrigation
Administration;
4)          Section 1  ofExeoutive order No.124-A S.1987 Amending Executive order No.
124,   dated  30  January   1987,   Reorganizing  the  Department  of  Public  Works   and
Highways,  Redefining Its Powers and Functions,  and For Other Purposes on renaming
and  reorganizing  the  National  Water  Resources   Council  into  the  National  Water
Resources Board.


a)        The following provisions are hereby amended accordingly:
1)          Section 3 paragraph 3 Commonwealth Act No.146, as amended, otherwise known
as the Public Service Act pertaining to all cases involving the fixing of rates;
2)          Section 154, Article v, Chapter I, Title one, Book Il ofRepublic Act No. 7160, as
amended,   otherwise   known   as   the   "Local   Government   Code   of   1991",   and   its
implementing rules and regulations on the power of the local government units to fix the
rates of water utilities owned, operated and maintained by them within their jurisdiction
is hereby repealed or modified accordingly;
3)         Section  13  a) on the regulation of enterprises within the Economic zone under
Republic Act No.  7916 as amended,  otherwise known as  "The Special Economic Zone
Act of 1995";
4)          Section 69 of Republic Act No.  9593  otherwise known as  "The Tourism Act   of
2009"     and  its     implementing  rules  and     regulations  which  mandate  the  Tourism
Infrastructure and Enterprise Zone Authority to grant franchises, supervise the operation
of public utilities, and register, monitor and regulate enterprises within Tourism Enterprise
Zones, are hereby repealed or modified accordingly;
5)          Sections 7 and 8 on the adjudication of water pollution cases under Republic Act
No.  3931  entitled,  An  Act  Creating  The  National  Water  And  Air  Pollution  Control
Commission, particularly with respect to Section 6 (e, f, g, j, k) Presidential Decree 984
entitled, Providing for the Revision of Republic Act No. 3931, Commonly Known as the
Pollution Control Law, and For Other Purposes;
6)          Sections 4(1) and 7 ofRepublic Act No. 9275, otherwise known as the "Philippine
Clean Water Act of 2004" ;
7)          Articles  3(d)  and  79  of presidential  Decree  No.1067,  otherwise  known  as  The
Water Code of the Philippines;
8)          Sections 9,10,11,12 and 13, Chapter Il ofpresidential Decree No. 856, otherwise
known as the "Code on Sanitation of the Philippines"; and
9)          Section 3.2 (b) of Executive order No.149 Series of 1993 transferring the Laguna
Lake  Development  Authority  from  the  Office  of the  President  to  the  Department  of
Environment and Natural Resources.
-


10)         All      other   laws,    presidential      decrees,      executive      orders,      presidential
proclamations,  rules  and  regulations,  or  parts  thereof which  are  inconsistent  with  the
provisions of this Act are hereby repealed or amended accordingly.
SEC. 46. EJffgctl.vJ.fy. -This Act shall take effect flfteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.
Approved,