TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
25
1-8 P5:C4
SENATE
Senate Bill No. ^40
Introduced by Senator JOEL VILLANUEVA
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER 
RESOURCE MANAGEMENT AND CREATING THE DEPARTMENT OF 
WATER RESOURCES AND THE WATER REGULATORY 
COMMISSION, DEFINING THEIR MANDATE, POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
It is a universal truth that water is life. Without it, life as we know it would be 
impossible. At a fundamental level, humans can go for up to one or two months 
without food, but we can only survive for a few days without water. The United Nations 
General Assembly explicitly recognized the right to safe and clean drinking water and 
sanitation as a human right that is essential for the full enjoyment of life and all other 
human rights.
Without water security, we risk endangering the health and lives of our people. 
In 2020, the UNICEF and the World Health Organization recorded that only 47.46% 
of the entire population in the Philippines had access to safely managed drinking 
water.1 As of 2024, around 40 million Filipinos still lack access to formal water 
resources and are instead dependent on rainwater, rivers, or creeks for their daily 
needs, according to the Department of Environment and Natural Resources (DENR).2
1 
Inquirer.net. WHO-Unicef report: Nearly half of Filipinos get safe drinking water. Published on 07 July 2021. 
Available at https://newsinfo.inquirer.net/1456912/who-unicef-report-nearly-half-of-filipinos-get-safe- 
drinking-water (Accessed on 26 June 2025).
2 
Philippine News Agency. Ensuring Water Access. Published on 25 February 2025. Available at 
https://www.pna.gov.ph/opinion/pieces/1018-ensuring-water-access (Accessed on 25 June 2025).


Water scarcity limits our access to safe drinking water and prevents us from practicing 
basic hygiene. It could lead to failures in the sewage systems and a surge in diseases.
The Philippines faces the recurring paradox of having too much water during the 
rainy season and too little during the dry months.3 Year after year, communities 
endure destructive floods that displace families and damage livelihoods, only to suffer 
water shortages and droughts in the months that follow. This cycle of crisis is made 
worse by the fragmented and outdated state of our water governance. Our current 
institutions lack the capacity, coherence, and coordination to manage water across its 
full cycle. As the effects of climate change intensify, the urgency to act grows even 
stronger.
This bill seeks to fundamentally reform the governance of the Philippine water 
sector. The proposed measure establishes a comprehensive and coherent institutional 
framework for water governance through the creation of two new agencies: the 
Department of Water Resources (DWR) and the Water Regulatory Commission (WRC). 
This proposed legislation aims to:
2.
3.
4.
Centralize policy and planning under a dedicated Cabinet-level department that 
will oversee integrated water resource management (IWRM), including the 
development of a National Water Resources Management Plan;
Establish a unified and independent regulatory body, the Water Regulatory 
Commission, to oversee licensing, tariff-setting, and performance standards for 
all water supply, sanitation, and sewerage service providers;
Rationalize and harmonize overlapping mandates of existing agencies;
Enable long-term sector development through socialized credit, public-private 
partnerships, and capacity-building programs, especially for missionary areas 
and low-capacity water districts;
Ensure transparency, accountability, and citizen participation in planning, 
regulation, and service delivery, while protecting consumers' rights.
This proposed measure is not a mere exercise in administrative restructuring. It 
represents a long-overdue modernization of our national approach to water 
governance, shifting from a fragmented and reactive framework to one that recognizes 
water as a strategic and unifying policy priority. It calls for focused, science-based, 
and coordinated leadership, anchored in the principles of sustainability, equity, and 
accountability.
The era of piecemeal and ad hoc reforms must come to an end. The time has 
come to build a future-ready, climate-resilient, and inclusive water sector. One that 
upholds the right of every Filipino to safe, adequate, and affordable water.
3 Japan International Research Center for Agricultural Sciences (JIRCAS). Soil, water and Climactic Resources of 
the Philippines: 
Constraints, Problems and Research Opportunities. Available at
https://www.jircas.go.jp/sites/default/files/publication/intlsymp/intlsymp-13_41-52.pdf (Accessed on 25 June 
2025).


This version of the measure builds on the groundwork laid during the 19th 
Congress, based on Senate Bill No. 2771 under Committee Report No. 281.
In view of the foregoing, the immediate passage of this measure is earnestly 
sought.
joel Villanueva


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILPPINES
First Regular Session
)
)
)
SENATE
Senate Bill No.
25 JUL-8 P5 :C4
Introduced by Senator JOEL VILLANUEVA
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER 
RESOURCE MANAGEMENT AND CREATING THE DEPARTMENT OF 
WATER RESOURCES AND THE WATER REGULATORY 
COMMISSION, DEFINING THEIR MANDATE, POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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CHAPTER I
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General Provisions
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SECTION 1. Short Title. - This Act shall be known as the "National Water
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Resources Management Act"
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SEC. 2. Declaration of Policy. -
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a) The State recognizes that water is fundamental to individual life, health, and
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dignity, and that every person has a right to access safe and clean water for
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personal and domestic use;
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b) The State affirms that the right of all Filipinos to safe and clean drinking water
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and sanitation is essential to the full enjoyment of life and all human rights and
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hence, the attainment of a nationwide water supply, sanitation, and sewerage
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services at reasonable rates must be pursued in an orderly, rational, efficient,
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and dynamic manner;


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c) 
The State emphasizes that water is a public good subject to diverse use in
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economic, agricultural, and industrial activities, and is thus a scarce resource
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which must be carefully regulated to prevent resource depletion and to ensure
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its availability for future generations;
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The State also maintains that water is indispensable to the existence and
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sustainability of natural ecosystems, and as such its use must neither endanger
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the balance and health of the environment nor compromise the rhythm and
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harmony of nature;
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e) 
The State further maintains that water resources are interconnected with
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climate, soil condition, land use and land cover, forest cover, and other natural
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resources. As such, the management of water will require inter-sectoral and
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inter-agency collaboration as well as harmonization of laws, policies, institutions,
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and stakeholders; and
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Finally, while the State maintains that all water resources remain under its full
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ownership, control, and supervision, it emphasizes that it may enter into
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arrangements with the private sector, as well as with civil society and
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community-based organizations, on the basis of beneficial use, to ensure the
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efficient and affordable delivery of water supply, sanitation, and septage services
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to end-users.
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In accordance with these precepts, it is hereby declared the policy of the State
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to provide for the rational, evidence-based, and integrated management of all water
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resources in the country to ensure universal access to safe, adequate, and affordable
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water supply, sanitation, and septage services, through a policy and regulatory regime
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that encourages innovation and responsible private sector participation, while ensuring
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ecological preservation and environmental sustainability.
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SEC. 3. Definition of Terms. - The following terms are hereby defined as
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follows:
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a) Bulk water supplier refers to any entity, natural or juridical, whether public or
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private, supplying or intending to supply large quantities of raw or treated water
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to buyers who will use it for own consumption, such as industrial companies, or
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for retail distribution to consumers such as water service providers or real estate
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developers managing their own distribution network;


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b) Environmental services refer to qualitative functions of natural non-produced
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assets of land, water, and air, including related ecosystems, and their biota, and
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which may be categorized into three basic types: (i) disposal services which
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reflect the functions of the natural environment as an absorptive sink for
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residuals; (ii) productive services which reflect the economic functions of
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providing natural resource inputs and space for production and consumption,
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and (iii) consumer or consumption services which provide for physiological as
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well as recreational and related needs of human beings;
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c) Flood Control xeioxs to methods, acts, and protocols to be observed in order
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to prevent and reduce the detrimental and catastrophic effects of flood waters
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which include sediment-laden or turbid flows, and hyper-concentrated flows or
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debris flows;
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d) Flood Risk Management (FRM) refers to such acts of defining and
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determining the appropriate methods, acts and protocols aimed at preventing
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and reducing the risk of incurring loss of both life and property due to flood
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waters. Flood risk management consists of a cycle of prevention, mitigation,
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adaptation, preparedness, and early warning, and, response and recovery. The
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elements of FRM include: integrating land-use planning and coastal zone
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management into water management; adopting a holistic approach so that FRM
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is part of wider risk or multi-hazard management of earthquakes, landslides, and
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storm surges; managing risk and uncertainty as a whole so it is not only
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hydrological uncertainties but also social, economic, and political uncertainties
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on account of human behavior and cultural dimensions of FRM;
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e) Infrastructure and public works refer only to wholly or primarily water-
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related projects and shall not incorporate projects that do not otherwise fall
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within the purview of the objectives, powers, and duties of the Department of
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Water Resources created under this Act;
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f) Integrated Water Resource Management (IWRM) refers to a systematic,
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collaborative and multi-stakeholder process which promotes the coordinated
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development and management of water, land, and related resources within
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geophysical boundaries in order to maximize the resultant economic and social


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welfare in an equitable manner and without compromising the sustainability of 
vital ecosystems;
I/ce/iserefers to the Water Supply or Sanitation Services Operating License that 
the Water Regulatory Commission is authorized to grant and issue to Service 
Providers;
Licensee refers to the Service Provider to whom a License is granted or issued 
by the Water Regulatory Commission;
Missionary Water refers 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;
Nationai Water Resources Management Pian (NWRMP) refers to a policy 
document that incorporates a framework to guide the deveiopment and 
management of all water resources in the Philippines, the general strategies and 
work to be pursued to ensure the sustainability of the resource and work towards 
the water security; and provides 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 on public, private and international 
development funding sources;
Reguiatory Units refer to the regulatory offices of the Water Regulatory 
Commission established under this Act;
River basin refers to an area of land drained by a stream or body of fixed water 
and its tributaries which have a common outlet for surface run-off;
River Basin Organization (RBO) refers to multi-stakeholder organizations 
which plan, coordinate, and monitor activities within a river basin cluster; 
Sanitation refers to the provision of facilities and services for the safe 
management of septage and sewage, from the collection 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;


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Septage refers to the liquid and solid material pumped from a septic tank, 
cesspool, or other primary treatment source.
Septage Management to the provision of proper collection, treatment, 
and disposal of septage;
Service Area refers to the area covered by the water distribution system, 
sewerage, and septage management services;
Service Provider- refers to any entity, natural or juridical, whether private or 
public, providing or intending to provide water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic, 
residential, institutional, industrial, or commercial use;
Sewage refers to water-borne 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 water 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;
Sewerage refers to any system or network of sanitary pipelines, ditches, 
channels or conduits including pumping stations, lift stations and force mains, 
service connections including other infrastructure, devices or appliances 
appurtenant thereto, which includes the collection, transport, pumping and 
treatment of sewage to a point of disposal;
Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose sewage;
Tariffs xefex to such amounts which may be charged by licensees for their water 
supply, sewerage, or sanitation services based on principles, standards, and 
guidelines established by the Water Regulatory Commission;
Water Demand Management 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 of water required to accomplish a specific 
task;


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(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 water;
(3) 
Reduce the loss in quantity or quality of water as it flows from source, 
through use, to disposal;
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Shift the timing of use from peak to off-peak periods; and
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Increase the ability of the water system to continue to serve society during 
times when water is in short supply.
Water District refers to government-owned and controlled corporations 
organized under Presidential Decree No. 198, otherwise known as the "Provincial 
Water Utilities Act of 1973", 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;
Waterpoiiution 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;
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;
Water resource aiiocation refers to the process of sharing the limited water 
resources between competing users. This consists of determining water 
availability and determining how the water should be shared among competing 
users. For the purpose of this Act, resource allocation shall also mean water 
resource allocation;
Water Resources Regions refer to the contiguous clusters of river basins 
created under this Act for administrative purposes under the Department of 
Water Resources;
Water Resources Regionai Offices (WRROs) refer to the field offices of the 
Department of Water Resources, as created under this Act, which are to be


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established in accordance with the identified water resources regions in the
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country;
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dd) Water service cooperative refer to cooperatives organized primarily to own,
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operate, and manage water systems for the provision and distribution of potable
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water for the members and their households
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ee) Water Service Providers (WSPs) refer to the water districts, any Local
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Government Unit (LGU)-run water utility, Barangay Waterworks and Sanitation
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Association, Rural Waterworks and Sanitation Association, water service
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cooperatives, and private sector entities that provide water supply services to
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any given area;
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ff) Water supply service refers to any activity comprising developed water
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sources, communal faucet system or stand posts, waterworks system or
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individual house connections, which include bulk suppliers, suppliers to
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subdivisions, or other similar water service providers.
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CHAPTER II
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Department of Water Resources
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SEC. 4. Establishment of the Department of Water Resources. - There is
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hereby established the Department of Water Resources, hereafter referred to as the
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Department,
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SEC. 5. Mandate and Objectives. - The Department shall be the primary
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policy, planning, coordinating, implementing, monitoring, and administrative entity of
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the Executive Branch of the government responsible for the comprehensive,
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sustainable, climate-resilient, and integrated development and management of the
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water resources of the Philippines, and their optimal allocation and use for domestic
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and municipal water supply, sanitation, irrigation, hydropower, industry, navigation,
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flood management, and recreation, and water utilization aspects of fisheries or
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aquaculture.
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The Department shall also be the primary agency responsible for the planning
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and policy formulation towards the attainment of universal access to safe, adequate,
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affordable, and sustainable water supply, and improved sewerage and sanitation
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services for all Filipinos.


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SEC. 6. Powers and Functions. -The Department shall exercise the following 
powers and functions:
a) Policy Making And Planning
(1) 
Ensure that Integrated Water Resources Management (IWRM) is adopted 
as the strategic framework for water management policymaking and 
planning in the country and coordinate the implementation, promotion, 
revision and enhancement of IWRM plans;
(2) 
Formulate policies, strategies, and targets in coordination with other 
relevant agencies and stakeholders to meet the goals and objectives for 
water resource sustainability and protection, water allocation and 
management, water supply, sanitation, and sewerage, water quality, 
irrigation, hydropower, flood control, stormwater utilization, and urban 
drainage. Such policies shall, among other guidelines, integrate the relevant 
issues of water, sewerage, sanitation, food security, energy, environment, 
flood control, and climate change;
(3) 
Formulate long-term policies to balance the sustainability and optimal 
multiple use of water resources, define the hydrologic boundaries of basins 
of the existing water supply sources, and develop or update existing River 
Basin Master or Comprehensive Plans which includes all aspects of water 
management and development such as water supply, sewerage, and 
sanitation, irrigation, flood control and storm water or urban drainage, 
drought risk management, water resource development systems and other 
public water works projects, including phasing of implementation;
(4) 
Harmonize all relevant national river basin policies and serve as the national 
policy coordination office for LCDs and relevant stakeholders in the 
development and sustainability of river and catchment basins;
(5) 
Identify, based on the river basin master plans, priority projects for water 
infrastructure development per river basin, including water supply, 
sanitation, irrigation, hydropower, flood control and storm water or urban 
drainage, drought risk management, water resource development systems 
and other public works projects;


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(6) 
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;
(7) 
Formulate and develop policies and strategies to promote universal access 
to safe, adequate, affordable, and sustainable water supply, and improved 
sanitation services for all Filipinos;
(8) 
Develop, in consultation with relevant agencies and stakeholders, the 
National Water Resources Management Plan (NWRMP) and ensure its 
integration into existing Comprehensive Land Use Plans and Provincial 
Development and Physical Framework Plans, within the context of a 
National Physical Framework Plan, to ensure the harmonization of planning 
of water, land, subsurface, and air resources, submit the NWRMP to the 
National Economic and Development Authority Board (NEDA) for approval 
and eventual adoption, and regularly update the NWRMP, every five years 
or as deemed necessary by the Department, in order to ensure its relevance 
to the times;
(9) 
Prepare, formulate, implement, and update a five (5) year plan of action 
for National and Regional Septage Management, which shall contain 
measures for the construction of wastewater treatment facilities and 
provision, installation, operation, maintenance and, where practicable, the 
integration of sewerage, septage management, storm water management 
and other sanitation facilities, in accordance with Republic Act No. 9275, 
otherwise known as the "Philippine Clean Water Act of 2004". Compliance 
with the mandate to implement septage management services and systems 
by any WSP pursuant to Republic Act No. 9275 shall be reckoned within 
five (5) years from the date of promulgation or publication of the septage 
management plan formulated by the Department;
(10) 
Review and provide oversight over all water-related development plans 
and programs of any agency or local government unit (LGU) within the 
context of the NWRMP and overall national plans and programs;
(11) Assist and provide the NEDA with the required data and input from the 
water sector in the formulation of the country's short-term and long-term


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strategic development plans and actions, and recommend to the NEDA 
Board the adoption of general policies and guidelines for water resources 
development;
(12) 
Strengthen and coordinate with relevant agencies on policy making and 
planning for flood management, integrated with stormwater or urban 
drainage and appropriate retention or retarding basins in order to harvest 
and reuse water, and to plan against, prevent, and minimize the 
detrimental and catastrophic effects of flooding;
(13) Develop and implement, in coordination with other relevant agencies and 
stakeholders, 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; and ensure that the planning and design of water 
infrastructure considers the highest efficiency and most appropriate 
technology and quality;
(14) Ensure that gender equality, social inclusion, environmental protection, 
climate resiliency and disaster risk reduction, and indigenous knowledge 
systems and practices are integrated into any water resources management 
planning, policy making, and the design and construction of water 
infrastructure;
(15) Act as the lead agency in ensuring the effective implementation of all laws 
and implementing rules and regulations on water resources;
(16) Review all water laws and implementing rules and regulations and propose 
amendments thereof to Congress, and advise any agency on the 
implications of government actions, policies, and programs to water supply, 
sewerage, and sanitation;
(17) Authorize its representatives or any deputized agent to enter any property 
of public dominion or any private land, building or enclave, whether 
inhabited or not, or authorize a representative thereof, for the purpose of 
conducting hydrological surveys and investigations, including assessing and
10


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evaluating the conditions of water facilities installed, and determining
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compliance with water laws and standards; and
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(18) Issue and promote rules and regulations as may be necessary to implement
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and enforce its powers and functions under this Act;
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b) Data Collection and Evidence Gathering
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(1) Establish, operate, and maintain a centralized water resources data center
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necessary for the scientific survey and appraisal of surface and ground
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water potentials of the country and determine the annual renewable water
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available per available water resources region;
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(2) Effect inter-sectoral, inter-agency and inter-departmental coordination on
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all aspects of data gathering and data sharing for water resources
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development planning and compei submissions of statistics and data on
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water management with the aim of operationalizing the IWRM framework;
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(3) Undertake river basin survey, inventory, and appraisal of water and related
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resources, and develop comprehensive basin-wide plans of storage,
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retardation, and control to maximize conservation and multipurpose use of
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water in the basin in coordination with the river basin initiatives of relevant
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government entities;
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(4) Collect, regularly update, monitor, and analyze water resources data
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including climatology, hydrologic, and other water-related data;
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(5) Establish, in coordination with agencies that generate water-related data,
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the guidelines, standards, methodologies, and protocols for data collection
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that will be officially recognized by the Department, and institute
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mechanisms for coordination with other agencies as regards their
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submission and certification of submitted water-related data to the
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Department
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(6) Conduct continuing hydrological and hydrometeorological surveys and
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studies of the country's renewable water supply, and establish, operate,
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and maintain observation station networks;
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(7) Conduct and promote special studies and research on water economics and
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other aspects of water resources development and management as may be
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needed to support the policy and plan proposals of the Department, such
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as, but not limited to, impacts of climate change, weather modification, 
flood monitoring and modeling, environmental quality, and desalination;
(8) 
Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and 
appraisal of surface and groundwater potentials of the country, and 
determine the annual renewable water available per water resources 
region;
(9) 
Develop and continuously update a computerized decision support system 
that incorporates data management system 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; and
(10) Promote Philippine participation in information sharing and education on 
best practices in support of international efforts to achieve universal access 
to safe water and improved sanitation and the integration of water, energy, 
food security and environment.
Water Resource Management and Allocation
(1) Formulate, issue, and enforce rules and regulations on the following:
i. 
Abstraction, diversion, and development of the country's water 
resources, taking into consideration their equitable distribution among 
competing demands and determine the standards of beneficial and 
priority uses of water in times of crises and national emergencies;
ii. 
Equitable and optimal allocation of the country's water resources for 
domestic and municipal water supply, irrigation, sanitation, irrigation, 
hydropower, navigation, fisheries, livestock raising, industrial, 
recreational, and other purposes;
Hi. Determination and granting of water rights, including adjudication in 
cases of conflicting uses, amending for this purpose. Act No. 2152, 
otherwise known as "The Irrigation Act", and other laws relating to 
the appropriation and utilization of surface and groundwater: 
Provided, That the grant and adjudication of conflicting water rights 
shall be exercised by the Water Resources Adjudication Board;
12


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Such other coherent water protocols as may be necessary, including
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the operating rules of all existing and future water infrastructure, legal
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and technical mechanisms for intra-sectoral transfers;
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V. 
Guidelines for the determination of costs and fees of all water rights,
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tariffs, permits, and licenses through a science-based method which
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will accurately reflect the current or future projected state of the water
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resource to be allocated: Provided, That the actual methodology for
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setting rates and tariffs shall be the exclusive power of the Water
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Regulatory Commission;
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vi. 
Methods and standards for basic data collection and project
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identification, formulation and planning, and appropriate sanctions to
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be imposed for non-compliance;
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vii. 
Guidelines in the grant of areas for missionary water, such as, but not
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limited to, corresponding non-tax incentives and possible sources of
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funding and revenues;
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viii. 
Treatment and utilization, in coordination with relevant agencies, of
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flood control, rain-water run-off, stormwater, and urban drainage;
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(2) Exercise original jurisdiction over all disputes relating to appropriation,
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utilization, exploitation, development, control, conservation and protection
20 
of all water resources, the adjudication of which shall be enforced by the
21 
Water Resources Adjudication Board;
22 
(3) Impose fees or charges, as may be deemed necessary for water resources
23 
conservation and protection, in accordance with applicable rules and
24 
regulations on the imposition and increase of fees or charges, such as, but
25 
not limited to:
26 
i. 
Raw water price, which shall take into account, among others, the
27 
scarcity of water; and
28 
ii. 
Appropriate structures for payment of environmental services;
29 
(4) Raise public awareness through information, education, and
30 
communications programs, and build capacities for informed participation
31 
in water resources management at the national and river-basin level.
32 
d) Administration and Management
13


1
(1)
2
3
4
5
6
(2)
7
8
(3)
9
10
11
12
(4)
13
14
15
16
17
(5)
18
19
(6)
20
21
(7)
22
23
24
e) Coi
25
(1)
26
27
28
(2)
29
30
31
(3)
32
Department, field offices of national government agencies, LCDs, and other 
stakeholders, in water resource management, facilitate the establishment 
of multi-stakeholder river basin organizations (RBOs) per river basin, and 
strengthen and support existing RBOs and monitor their activities;
Develop materials for capacity building and training on RBO development 
and conduct training and workshops for prospective RBOs;
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;
Conduct a performance audit of all water-related agencies and institutions, 
including but not limited to the 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; 
Respond to consumer complaints, and ensure the adequate promotion of 
consumer interests;
Deputize any official or agency of the government to assist in the 
performance of any of the powers and functions of the Department; 
Appoint, hire, and maintain adequate staff and personnel, advisers or 
consultants with suitable qualifications and experience, as necessary, in 
accordance with relevant civil service laws, rules, and regulations.
instrumentalities to ensure a whole-of-government approach to attaining 
water security;
Coordinate and integrate water resources development activities of the 
country within the context of national plans and policies for social and 
economic development;
Coordinate with other government agencies, universities, academe, and 
private professional groups in all aspects of data gathering, the conduct of
14


1 
special studies and research on all related aspects of water resources
2 
management and development such as climate change, environmental
3 
quality, desalination, and the development of operating strategies,
4 
procedures, and protocols with accompanying computerized decision tools
5 
for major water facilities;
6 
(4) Coordinate with the concerned and relevant agencies engaged in flood
7 
control, flood risk management, and drought risk management; and;
8 
(5) Coordinate proactively with LGUs to ensure the integration of water
9 
resources development plans into their comprehensive land use plans,
10 
Comprehensive Development Plans, or Provincial Physical Framework and
11 
Development Plan.
12 
f) Other Functions
13 
(1) Create, when necessary, water resource subsidiaries, instrumentalities, and
14 
entities to engage in water transmission, water distribution, waste water
15 
treatment and management, and sanitation in accordance with existing
16 
relevant laws, without prejudice to private entities capable of and willing to
17 
engage in the aforementioned activities through concession agreements,
18 
joint venture agreements, bulk water agreements, or service agreements
19 
or contracts. For this purpose, the Department shall ensure compliance with
20 
existing frameworks, rules, regulations and guidelines for private sector
21 
participation in water transmission, water distribution, waste water
22 
treatment and management, storm water management, and sanitation;
23 
(2) Enter into contracts, joint venture agreements, public-private partnerships,
24 
and memorandum of agreements or understanding, either domestic or
25 
foreign relating to investment and financing water-related projects, under
26 
such terms and conditions as the Department may deem proper and
27 
reasonable subject to existing laws;
28 
(3) Review existing guidelines appropriate for private sector participation in the
29 
water sector and submit recommendations to the Public-Private Partnership
30 
(PPP) Center and other concerned agencies to promote and enable more
31 
PPPs in the sector; and
15


1 
(4) Exercise such other powers and functions necessary or incidental to the
2 
effective administration and management of the country's water resources.
3 
SEC. 7. Offices/ Functions^ and Personnel to be Completely Absorbed
4 
by the Department. - The following offices are hereby abolished, and their
5 
respective powers and functions, and the corresponding personnel, funds and
6 
appropriations, records, equipment, and property shall be absorbed by the
7 
Department:
8 
a) National Water Resources Board, whose mandate, powers, and functions are
9 
provided in Presidential Decree No. 424 creating the National Water Resources
10 
Council, now NWRB, as amended: Provided, That its water utility regulation units
11 
and functions vested under Commonwealth Act No. 146, also known as the
12 
"Public Service Act", as amended, shall be absorbed by the Water Regulatory
13 
Commission created under this Act: Provided, further, That its resource allocation
14 
or regulation units vested under Presidential Decree No. 1067 shall be absorbed
15 
by the Department under the National Water Resources Adjudication Board and
16 
the Resource Allocation Office, also created under this Act;
17 
b) Local Water Utilities Administration (LWUA) with its services, departments and
18 
divisions, whose mandate, powers and functions are provided for in Title III of
19 
Presidential Decree No. 198, as amended, otherwise known as the "Local Water
20 
Utilities Administration Law": Provided, That its economic regulatory functions
21 
over local water districts shall be fully absorbed by the Water Regulatory
22 
Commission created under this Act: Provided, further. That its function to provide
23 
technical assistance to local water service providers shall be absorbed by the
24 
Department under the Local Water Service Providers Bureau, also created under
25 
this Act;
26 
c) River Basin Control Office (RBCO) of the DENR whose mandate, powers and
27 
functions are found in Executive Order No. 510, series of 2006, and Executive
28 
Order No. 816, series of 2009, as amended: Provided, That the DENR shall
29 
continue to have primary authority and responsibility for protecting the
30 
environment and managing the country's watersheds and reforestation activities:
31 
Provided, further. That the targeting of priority watershed areas shall be
32 
coordinated with the Department;
16


1 
d) Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened by
2 
virtue of DENR Administrative Order 2011-01, to coordinate the efforts of the
3 
fourteen (14) national agencies covered by the Mandamus Order of the Supreme
4 
Court to rehabilitate Manila Bay;
5 
e) Water Supply and Sanitation Unit of the Department of the Interior and Local
6 
Government; and
7 
f) Water Resource Management Office of the DENR whose mandate, powers, and
8 
functions are provided in Executive Order No. 22, series of 2023.
9 
SEC. 8. Powers and Functions to be Transferred to the Department. -
10 
The powers and functions of the following agencies, bureaus, and units and the
11 
corresponding personnel, funds and appropriations, records, equipment, and property
12 
are also hereby transferred to the Department:
13 
a) The powers and functions of the DPWH with regard to the planning,
14 
programming, administration, monitoring, and management of the National
15 
Sewerage and Septage Management Program (NSSMP); and
16 
b) The following functions of the dissolved Pasig River Rehabilitation Commission
17 
and transferred to the Manila Bay Task Force per Executive Order No. 93, series
18 
of 2019;
19 
(1) Updating and leading in the overall implementation of the Pasig River
20 
Rehabilitation Master Plan; and
21 
(2) Ensuring that the easements provided for in the Civil Code and other
22 
relevant laws are enforced, especially in all the esteros and waterways as
23 
well as abating the dumping of untreated wastewater and sewage into
24 
water systems, including all acts and omissions in violation of Presidential
25 
Decree No. 984, as amended, and other related laws.
26 
SEC. 9. Attached Agencies - The Department shall exercise administrative
27 
supervision over the following agencies for purposes of policy and program
28 
coordination, monitoring, and evaluation:
29 
a) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate,
30 
powers, and functions are defined under Republic Act No. 6234, as amended
31 
entitled, "An Act Creating the Metropolitan Waterworks and Sewerage System
32 
and Dissolving the National Waterworks and Sewerage Authority, and For Other
17


1 
Purposes," shall be transferred from the DENR and attached to the Department:
2 
Provided, That the MWSS shall continue to facilitate the exercise by the
3 
concessionaires of their responsibility; carry out accounting and notification
4 
functions; monitor, report, and administer loans; perform related functions in
5 
connection with existing projects; manage, operate, and dispose its retained
6 
assets: Provided, further, That its regulatory arm, the MWSS-Regulatory Office,
7 
shall be fully absorbed by the Water Regulatory Commission created under this
8 
Act;
9 
b) The Laguna Lake Development Authority (LLDA), whose mandate, powers and
10 
functions are defined under Republic Act No. 4850 otherwise known as "An Act
11 
Creating the Laguna Lake Development Authority, Prescribing Its Powers,
12 
Functions and Duties, Providing Funds Therefor, and for Other Purposes", as
13 
amended, shall be transferred from DENR and attached to the Department:
14 
Provided, That the power to set rates and fees for the use of the lake waters and
15 
its tributaries for all beneficial purposes under Section 4-B of Republic Act No.
16 
4850, and the corresponding personnel, funds and appropriations, records,
17 
equipment, and property thereof shall be transferred to the Water Regulatory
18 
Commission: Provided, further: That the rates fees set by the WRC shall no
19 
longer be subject to the approval of the President of the Philippines. The LLDA
20 
shall continue to serve as the lake management and development authority
21 
similar to a multi-stakeholder river basin organization and shall ensure the
22 
implementation of the Laguna Lake Master Plan which shall be updated by the
23 
Department to ensure alignment with the NWRMFP;
24 
c) The National Irrigation Administration (NIA), whose mandates, powers and
25 
functions are defined under Republic Act No. 3601, otherwise known as "An Act
26 
Granting the National Irrigation Administration", as amended, is hereby
27 
transferred to the Department; 
and
28 
d) Any other agency performing water resources management, conservation, and
29 
protection functions may be transferred to the Department as the President
30 
deems necessary.
31 
The Secretary shall be the ex-officio Chairperson of the Governing Boards of the
32 
aforementioned government-owned and controlled corporations to be attached under
18


1 
the Department. In case existing laws, rules and regulations provide for a specific
2 
process in appointing the agency's Chairperson, the Secretary of Water Resources
3 
shall serve as Co-Chairperson.
4 
SEC. 10. Organization. -The Department shall be composed of the Office of
5 
the Secretary, and the various bureaus and services, and regional offices. The Office
6 
of the Secretary shall house the Office of the Department Secretary, the Office of the
7 
Undersecretaries, the Office of the Assistant Secretaries, and their immediate support
8 
staff.
9 
SEC. 11. Secretary of the Department of Water Resources. - The
10 
authority and responsibility for the exercise of the mandate of the Department and for
11 
the discharge of its powers and functions shall be vested in the Secretary of the
12 
Department, hereinafter referred to as the Secretary, who shall be appointed by the
13 
President, subject to confirmation by the Commission on Appointments. The Secretary
14 
shall:
15 
a) Provide executive direction, supervision, and control over the entire operations
16 
of the Department and exercise supervision over its attached agency for program
17 
and policy coordination;
18 
b) 
Advise the President on the promulgation of executive or administrative orders,
19 
and other issuances and on the formulation of necessary regulatory or legislative
20 
proposals on matters pertaining to the management of water resources, water
21 
supply, sanitation, and septage services;
22 
c) Establish the policies and standards for the effective, efficient, and economical
23 
operation of the Department pursuant to the President's guidelines;
24 
d) 
Advise the President on the status of water management and supply, recommend
25 
to the President the declaration of a state calamity in areas affected by water
26 
supply, and submit proposals to restore normalcy in the affected areas;
27 
e) 
Promulgate rules and regulations necessary to carry out the objectives, policies
28 
and functions of the Department;
29 
f) Designate and appoint officers and employees of the Department, excluding the
30 
Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional
31 
Directors, in accordance with the civil service laws, rules and regulations;
19


1 
g) Exercise control, supervision, and disciplinary powers, in accordance with law,
2 
over all officers and employees of the Department, including their investigation
3 
and the designation of a committee or officer to conduct such investigation, in
4 
accordance with the civil service laws, rules and regulations;
5 
h) Create regional offices and such other service units, bureaus, and divisions as
6 
may be necessary;
7 
i) 
Call upon and deputize any official, agent, employee, agency, or instrumentality
8 
of the national and local government for any assistance that it may deem
9 
necessary to carry out the purposes of this Chapter, subject to existing laws;
10 
j) 
Delegate authority for the performance of any power or function, as defined
11 
herein to officials and employees under his direction as deemed appropriate, in
12 
accordance with existing laws;
13 
k) Act as the ex-officio Chairperson of the governing board of the agencies attached
14 
to the Department; and
15 
I) Perform such other duties and responsibilities as may be provided by law.
16 
SEC. 12. The Offices of the Secretary and Undersecretaries - The Office
17 
of the Secretary shall be composed of the Secretary and immediate staff. The
18 
Secretary shall be assisted by not more than three (3) Undersecretaries and three (3)
19 
Assistant Secretaries, who shall all be appointed by the President upon the
20 
recommendation of the Secretary.
21 
The Secretary is hereby authorized to delineate and assign the respective
22 
functional areas of responsibility of the Undersecretaries and Assistant Secretaries:
23 
Provided, That such responsibility shall be with respect to the mandate and objectives
24 
of the Department: Provided, further, That no Undersecretary shall be assigned
25 
primarily to administrative responsibilities.
26 
SEC. 13. Qualifications of the Department Secretary,
TI 
Undersecretaries, and Assistant Secretaries. -
28 
a) No person shall be appointed Secretary, Undersecretary, or Assistant Secretary
29 
unless he or she is of good moral character, of proven integrity and competence
30 
in public administration, and has a minimum of seven (7) years of experience in
31 
the administration of water, sewerage, sanitation, irrigation, flood control, or
32 
drainage programs, preferably in a public agency;
20


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
b) 
At least one (1) of the Undersecretaries and at least one (1) of the Assistant 
Secretaries shall be career officers;
c) 
No officer, external auditor, accountant, or legal counsel of any private company 
or enterprises primarily engaged in the water industry shall be eligible for 
appointment as Secretary within two (2) years from retirement, resignation, or 
separation therefrom.
SEC. 14. The Water Resources Adjudication Board. - There is hereby 
created a Water Resources Adjudication Board, hereafter referred to as the Board, 
under the Office of the Secretary. The water resources allocation and regulation 
functions of the National Water Resources Board are hereby transferred to the Board 
which shall supervise the effective appropriation and regulation of the water resources 
in the country in accordance with Presidential Decree No. 1067. The Board shall 
exercise quasi-judicial powers granted to it under this Act.
SEC. 15. Composition of the Board. - The Board shall be composed of a 
Department Undersecretary as Chairperson and three (3) representatives from 
stakeholders as members, who shall all be designated by the Secretary.
There is hereby created a Resource Allocation Office, hereinafter referred to as 
the Office, which shall serve as Secretariat to the Board and shall exercise the following 
functions in order to provide technical support to the Board towards the effective 
regulation of the country's water resources.
SEC. 16. Functions of the Board. - The Board shall perform the following 
functions:
a) 
Promulgate rules and regulations for the exploitation and optimum utilization of 
water resources, in accordance with Presidential Decree No. 1067 and other 
existing laws, including the imposition on water appropriators of such fees or 
charges by the Department;
b) 
Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Research All;
c) 
Review and decide on requests for permits to extract or utilize the country's 
water resources and grant the corresponding water rights, upon 
recommendation of the Office in accordance with Presidential Decree No. 1067: 
Provided, That the water rights are exercised within five (5) years of granting of
21


1 
such rights: Provided, further, That applicants for water permits shall submit
2 
proof of land ownership of, or right to use the property where the water source
3 
is located: Provided, finaiiy. That, if the applicant is currently using the water
4 
source being applied for domestic or municipal purposes upon the effectivity of
5 
this Act, such applicant may submit such proof of prior use of possession of said
6 
property in lieu of ownership or right to use;
7 
d) Exercise original jurisdiction over decisions in cases involving the following:
8 
(1) All disputes relating to the appropriation, utilization, exploitation,
9 
development, control, conservation, and protection of waters;
10 
(2) Violations and disputes on raw water fees; and
11 
(3) Violations and disputes involving water permits, administrative allocation of
12 
water resources, and transfer of water rights;
13 
e) 
Issue subpoena duces tecum and subpoena ad testificandum)
14 
f) 
Cite any person or party in contempt for refusal to appear, testify or comply with
15 
the lawful orders of the Board in relation to any matter subject to its
16 
investigation;
17 
g) 
Hear, receive evidence, and decide on cases falling within its jurisdiction;
18 
h) 
Impose the appropriate sanctions, including revocation of water permits, over
19 
violations committed by appropriators after due notice and hearing in accordance
20 
with Presidential Decree No. 1067 and other existing laws, rules and regulations
21 
as well as future rules and regulations which the Board shall promulgate;
22 
i) Review, update, and revise all fees, charges, and penalties imposed on all water
23 
appropriators as stated under Chapter VII and VIII of Presidential Decree No.
24 
1067, upon recommendation by the Secretariat, and based on scientific and
25 
evidence-based studies;
26 
j) Promulgate its own rules and procedures; and
27 
k) Exercise such other powers as may be necessary to carry out its duties and
28 
responsibilities under this law.
29 
SEC. 17. Resource Allocation Office. -There is hereby created a Resource
30 
Allocation Office, hereafter referred to as the Office, which shall perform the following
31 
functions:
32 
a) Advise the Board on all matters relating to resource allocation and regulations;
22


1 
b) 
Formulate rules and regulation for the exploitation and optimum utilization of
2 
surface water, groundwater, and seawater extraction and use, for the approval
3 
of the Board, and for implementation by the Resource Allocation Office, including
4 
the processes for the application of water permits, in accordance with
5 
Presidential Decree No. 1067 and other existing laws;
6 
c) Process applications of rights to utilize water resources for the appropriate,
7 
optimal and sustainable use of surface and ground water, for the approval of the
8 
Board or its Executive Director, as may be delegated by the Board;
9 
d) 
Upon approval by the Board, issue water permits granted to water appropriators;
10 
e) 
Monitor performance and conduct audits on water rights grantees including,
11 
among others, review of compliance by grantees with the terms of the permits
12 
granted;
13 
f) Investigate, motu proprio or upon complaint, violations of the water rights and
14 
Presidential Decree No. 1067;
15 
g) In the case of violations and conflicts between and among users, file the
16 
necessary cases for the decision of the Board;
17 
h) Enforce the decisions promulgated by the Board, and as may be delegated by
18 
the Board;
19 
i) Coordinate with other relevant units of the Department regarding the generation,
20 
updating, managing, and sharing of water data;
21 
j) Respond to consumer complaints, and ensure the adequate promotion of
22 
consumer interests; and
23 
k) Perform such other related functions and activities which are necessary for the
24 
effective regulation of water-related services.
25 
The Office shall be headed by an Executive Director and shall be assisted by
26 
one (1) Deputy Executive Director.
27 
SEC. 18. Orders and Decisions. - Every order or decision rendered by the
28 
Board shall be in writing and shall state clearly and distinctly the facts and the law on
29 
which it is based. The Board shall decide each case or application within thirty (30)
30 
days following its formal submission for resolution. All decisions and final orders in the
31 
adjudication of contested cases or applications shall be published and made available
32 
for public inspection.
23


1 
SEC. 19. Appeals Procedure and Prohibition Against Injunction. -
2 
a) The orders, rulings, and decisions of the Board shall become final and executory
3 
after fifteen (15) days from receipt of such order, ruling, or decision, unless, prior
4 
to the lapse of this period, an appeal was made with the Secretary of Water
5 
Resources;
6 
b) All decisions where the penalty imposed is a fine shall be immediately executory,
7 
except upon the filing of a bond equivalent to the fine imposed or as may be
8 
fixed by the Board;
9 
c) Except for the Supreme Court, no temporary restraining order, preliminary
10 
injunction, or preliminary mandatory injunction may be issued by any court to
11 
restrain any proceeding before, or the implementation or execution of any order,
12 
ruling, or decision of the Board.
13 
SEC. 20. Bureaus and Services. -The Department shall establish, operate,
14 
and maintain the Bureaus and Services under it such as, but not limited to:
15 
a) 
The Local Water Service Providers Bureau shall provide technical assistance and
16 
personnel training for the creation, application for the socialized credit program,
17 
and operation of local water service providers, and shall effect system
18 
integration, joint investment and operation, district annexation and de-
19 
annexation, whenever economically warranted, in accordance with Section 50 of
20 
Presidential Decree No. 198, as amended by Section 22 of Presidential Decree
21 
No. 768;
22 
b) 
The Bureau of Flood Control and Drainage shall plan and design, in coordination
23 
with the DPWH and other relevant government agencies, flood control and
24 
drainage structures and facilities in accordance with technical standards,
25 
guidelines and manuals, and provide technical assistance to other agencies,
26 
LGUs, and other stakeholders;
27 
c) The Planning and Policy Service shall formulate strategies and priorities for water
28 
resources management and provide the Department with the capability to
29 
undertake water infrastructure development planning and programming;
30 
d) 
The Data Management Service shall develop, manage and maintain the
31 
management information system and knowledge systems of the Department,
32 
including the processing of water-related data;
24


1 
e) The Administrative and Human Resource Service shall provide the Department
2 
with services relating to human resources development, personnel, records,
3 
facilities maintenance, medical and dental, security and property and
4 
procurement services, in accordance with civil service laws, rules, and
5 
regulations;
6 
f) The Legal and Legislative Service shall provide the Department with services on
7 
legal affairs such as, but not limited to, contract preparation and review, legal
8 
and legislative research, complaints and investigation on employees, legal
9 
counselling and other matters of law;
10 
g) 
The Comptrollership and Financial Management Service shall provide the
11 
Department with coordinated services relating to financial systems and
12 
procedures, budget, cash, accounting and all financial housekeeping matters;
13 
h) Internal Audit Service shall regularly conduct a comprehensive audit of various
14 
Department activities;
15 
i) 
The Public Affairs Service shall enhance government relations with all
16 
stakeholders including the media and shall ensure that stakeholders and
17 
marginalized sectors shall be consulted and can take active part in all aspects of
18 
water resources development and management 
activities.
19 
The Bureaus and Services of the Department shall be headed by a Director who
20 
shall be responsible for efficiently and effectively carrying out the functions of the
21 
Bureau concerned. Each Director shall be assisted by one (1) Assistant Director.
22 
SEC. 21. The Water Resources Regional Offices. - Water Resources
23 
Regional Offices, herein after referred to as the Regional Offices, shall be organized
24 
per water resources region and shall be responsible for implementing the mandates,
25 
powers, and duties of the Department at the field level, except for policymaking which
26 
will be vested solely in the Department.
27 
The Department shall establish the water resources regions which shall be
28 
grouped together according to the hydrological boundaries, physiographic features,
29 
and homogeneity in climate, whether or not they straddle different LGUs.
30 
The Regional Offices shall have, within their respective water resources region,
31 
the following functions:
25


1 
a) Formulate or update and coordinate the river basin master plans for river basins
2 
within its jurisdictions consistent with the NWRMP;
3 
b) Advocate and strongly support the creation and functioning of multi-stakeholder
4 
River Basin Organizations (RBOs) and serve as the secretariat of the said RBOs;
5 
c) Undertake and evaluate the planning, design, and work supervision functions of
6 
the Department for the water infrastructures within the region, and recommend
7 
the necessary water infrastructures therein;
8 
d) Ensure the implementation of laws, policies, programs, rules, and regulations
9 
regarding the abovementioned infrastructure as well as public and private
10 
physical structures;
11 
e) Provide technical assistance related to the water-related functions of other
12 
agencies within the region, especially the local government;
13 
f) Coordinate with other departments, LGUs, agencies, institutions and
14 
organizations within the region in the planning and implementation of the river
15 
basin master plans;
16 
g) Conduct continuing consultations with the local communities, take appropriate
17 
measures to make the services of the Department responsive to the Central
18 
Office, and recommend such appropriate actions as may be necessary; and
19 
h) Perform such functions and activities, as may be mandated by law, which are
20 
necessary for the effective performance of the abovementioned objectives.
21 
Each regional office shall be headed by a Regional Director who shall be
22 
responsible for efficiently and effectively carrying out the duties and responsibilities of
23 
the office. The Regional Director shall be assisted by one (1) Assistant Regional
24 
Director. The Regional Directors and Assistant Regional Directors shall be appointed
25 
by the President.
26 
The Department shall retain existing Project Management Offices as may be
27 
required, which shall be under the supervision and control of the appropriate Regional
28 
Director, unless otherwise determined by the Secretary for reasons of supra-regional
29 
scope, magnitude, and multi-functional coverage.
30 
SEC. 22. Structure and Staffing Pattern. - Subject to the approval of the
31 
Department of Budget and Management (DBM), the Secretary shall determine the
32 
organizational structure and create new divisions or units as may be necessary, and
26


1 
appoint officers and employees of the Department in accordance with the civil service
2 
laws, rules and regulations. The remuneration structure of the position in the staffing
3 
pattern shall strictly conform to Republic Act No. 11466, otherwise known as the
4 
"Salary Standardization Law of 2019", as amended.
5
6 
CHAPTER III
7 
Socialized Credit For Local Water Service Providers
8 
SEC. 23. Socialized Credit Program. - Socialized credit shall be made
9 
available, through the Land Bank of the Philippines (LBP), for capital expenditures
10 
necessary for the maintenance, addition, expansion, or improvement of the services
11 
of the water service providers, such as but not limited to, capital expenditure for water
12 
distribution, water conservation, water treatment, water sanitation, water testing, and
13 
other related activities and ancillary services: Provided, That the loans shall be
14 
available to water service providers duly registered with the Department; Provided,
15 
further, That no loan shall be granted for the purpose of funding operational costs or
16 
expenses.
17 
SEC. 24. Committee on the Socialized Credit Program. -The Committee
18 
on the Socialized Credit Program (SCP), hereinafter referred to as the Committee, is
19 
hereby created. The Committee shall be composed of a representative of LBP as
20 
Chairperson and a representative of the Department as Vice-Chairperson, both of
21 
which should hold at least a director position, and four (4) additional members which
22 
shall be equally shared between the Department and LBP, who shall possess the
23 
necessary training and experience necessary for the Committee. The Committee shall
24 
directly report to the Secretary of the Department.
25 
The Committee shall exercise the following functions:
26 
a) Recommend the lending policies such as, but not limited to, the criteria of eligible
27 
borrowers, eligible loan purpose, interest rate, fees and charges, collateral,
28 
guarantee, insurance, and other forms of security, and other terms 
and
29 
conditions of the credit facility;
30 
b) 
Review the policies, and procedures, and formulate policies 
for the SCP;
31 
c) 
Monitor the process and performance of the SCP;
32 
d) 
Monitor the fund disbursements;
27


1 
e) Act on issues or concerns relative to the implementation of SCP;
2 
f) 
Conduct SCP performance evaluation; and
3 
g) 
Exchange credit information with LBP, LWUA, and other relevant agencies.
4 
The Committee shall prioritize the following target beneficiaries: Water Districts
5 
and LGU-run utilities in the Missionary Water Area; Water Districts with low credit
6 
rating; and other priority Water Districts or eligible projects of the Water District to be
7 
identified by the Committee.
8 
Generally, local water service providers with existing Public-Private Partnership
9 
Projects including joint venture arrangements are not eligible to the SCP.
10 
All recommendations of the Committee shall be jointly approved by the Secretary
11 
and the Board of the LBP: Provided, That the existing rules, regulations, and policies
12 
of LBP shall govern all implementation activities of the SCP, such as but not limited to,
13 
credit and background investigation and loan documentation, evaluation, award,
14 
negotiation, collection, and restructuring: Provided, further, That the LBP and the
15 
Department shall exchange relevant information to assess the eligibility of the water
16 
service providers to be a recipient of a grant or subsidy. Relevant information may
17 
include, but is not limited to, credit standing, existing loan obligations, and compliance
18 
with previous or existing loan covenants.
19 
The IRR shall provide other functions of the Committee that are necessary for
20 
the effective implementation of the SCP, including the creation of sub-committees,
21 
their composition and delegated functions.
22 
Other Government Financial Institutions, such as, but not limited to,
23 
Development Bank of the Philippines, may provide a similar SCP for water service
24 
providers: Provided, That these other GFIs shall submit monitoring reports to the
25 
Department thru the Committee.
26 
SEC. 25. Support Program for Local Water Service Providers. - The
27 
Department, the Department of Finance (DOF), and the Department of Budget and
28 
Management (DBM) shall issue guidelines in the disbursement of any grant, from any
29 
sources, and subsidy from the National Government: Provided, That the Department
30 
shall be the implementing agency for this purpose. Provided, further. That all income
31 
derived from the lending activities shall be recorded as LBP's income.
32
28


1 
CHAPTER IV
2 
The National Water Sector Policy Council
3 
SEC. 26. Creation of the National Water Sector Policy Council. -There is
4 
hereby established a National Water Sector Policy Council (NWSPC), hereinafter
5 
referred to as the Council, which shall exercise policymaking, coordination,
6 
harmonization, integration, supervision, monitoring and evaluation functions with
7 
regard to water, land, subsurface, air, and other natural resources. The Council shall
8 
be composed of the following members:
9 
a) 
Secretary of the Department of Water Resources as Chairperson;
10 
b) Director-General of the National Economic and Development Authority as the
11 
Vice-Chairperson;
12 
c) 
Secretary of the Department of Health (DOH);
13 
d) Secretary of the Department of the Interior and Local Government (DILG);
14 
e) 
Secretary of the Department of Energy (DOE);
15 
f) 
Secretary of the Department of Agriculture (DA),
16 
g) 
Secretary of the Department of Social Welfare and Development (DSWD);
17 
h) 
Secretary of the Department of Public Works and Highways (DPWH);
18 
i) 
Secretary of the Department of Budget and Management (DBM);
19 
j) 
Secretary of the Department of Environment and Natural Resources (DENR);
20 
k) 
Representative from the Office of the President (OP); and
21 
I) 
Chairperson of the National Commission on Indigenous Peoples (NCIP) as
22 
members.
23 
The Staff of the Department shall serve as Secretariat to the Council.
24 
SEC. 27. Powers and Functions of the Council. -The powers and functions
25 
of the Council shall be as follows:
26 
a) Ensure harmonization of all policies involving water, land, subsurface, air and
27 
other resources which are connected to the water sector;
28 
b) Ensure a multi-stakeholder participation in the development, updating, and
29 
sharing of information system as policy, planning and decision-making tools; and
30 
c) 
Recommend the integration of harmonized policies and priority programs in the
31 
National Water Resources Management Plan and the National and Regional
32 
Septage Management Plan.
33
29


1 
CHAPTER V
2 
Interdepartmental Relations
3 
and Institutional Arrangements of the DWR
4 
SEC. 28. Interface And Institutional Arrangements With Other
5 
Agencies. -
6 
a) The Department of Environment and Natural Resources (DENR) shall continue
7 
to have primary authority and responsibility for protecting the environment and
8 
managing the country's watersheds. The Pollution Adjudication Board shall
9 
remain to have jurisdiction with respect to adjudication of pollution cases based
10 
on exceedance of the DENR Effluent Standards and other acts defined as
11 
prohibited under Section 27 of R.A. No. 9275: Provided, That the Department
12 
shall coordinate with the DENR regarding the establishment of protocols for
13 
management of all water-related data being collected by the DENR;
14 
b) The Department of Health (DOH) shall continue to have primary authority and
15 
responsibility for setting and enforcing drinking water quality standards:
16 
Provided, That the Department and the Water Regulatory Commission shall
17 
coordinate with the DOH in this aspect, and shall ensure consistency of standards
18 
and targets, as well as the compliance of licensees with mandated standards;
19 
c) The Department of Energy (DOE) and the National Power Corporation (NPC)
20 
shall continue to have primary authority and responsibility for setting up and
21 
running hydropower plants: Provided, That all hydropower plant development
22 
plans shall be consistent with the NWRMP;
23 
d) The Department shall coordinate with the Department of Agriculture (DA) to
24 
promote agricultural development that reduces sources of long-term pollution
25 
for surface water and groundwater, and agricultural and industrial economic
26 
development that employs water efficiency, water recycling or reuse and the
27 
appropriate treatment of wastewater: Provided, That the Department shall
28 
coordinate with the DA and its Bureau of Soils and Water Management (BSWM)
29 
regarding the establishment of protocols for management of all water-related
30 
data being collected by the DA, as well as the outputs of research and studies
31 
by BSWM which may serve as input to policy formulation by the Department;
30


f)
1 
2
3
4
5
6
7
8 
9
10 
11 
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28 
j)
29
30
31
32
e)
g)
h)
i)
The Department shall coordinate with the Department of Public Works and 
Highways (DPWH) in setting the policies and preparing the master plans for bulk 
water transmission, pipe networks, and related water delivery infrastructures as 
well as flood control and drainage management, and other related projects under 
the DPWH: Provided, That the DPWH shall continue to have primary 
responsibility in the construction and implementation of water delivery 
infrastructures and flood control projects: Provided, further, That flood 
management plans are aligned with the NWRMP and flood waters be considered 
and harnessed as potential water source: Provided, finaiiy, That the Department 
shall coordinate with the DPWH regarding the establishment of protocols for 
management of all water-related data being collected by the DPWH and its 
Bureaus;
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;
The Department shall coordinate with Philippine Atmospheric, Geophysical, and 
Astronomical Services Administration (PAGASA), Climate Change Commission 
(CCC), and National Mapping and Resource Information Authority (NAMRIA) on 
scientific studies, integrated surveys, mapping, charting and decision support 
systems;
The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources;
The Department shall coordinate with the Tourism Infrastructure and Enterprise 
Zone Authority (TIEZA), Philippine Reclamation Authority (PRA), and economic 
zone authorities on water resources development and water requirements within 
tourist zones, reclamation areas and economic zones, respectively;
The Department shall coordinate with the Bangsamoro Autonomous Region in 
Muslim Mindanao (BARMM), specifically its Economic and Development Council, 
Disaster Risk Reduction and Management Council, and Ministry of Environment, 
Natural Resources and Energy, regarding the preparation of master plans of river 
basins that overlap with the inland waters within the BARMM's jurisdiction, and
31


1 
ensure the alignment of these plans with the NWRMP, Bangsamoro Development
2 
Plan, and other related regional plans of BARMM;
3 
k) The Department shall coordinate with the Department of Human Settlements
4 
and Urban Development in planning, monitoring and enforcing integrated land
5 
use and water resources management in the Comprehensive Land Use
6 
Development Plans and Zoning Ordinances of the LGUs to ensure, among others,
7 
the protection of water sources and that water availability is factored in proposed
8 
land use development plans and projects; and
9 
I) The Department shall coordinate with relevant government agencies, including
10 
LGUs, with respect to development projects and to ensure cross-cutting
11 
collaboration between and among all water subsectors and facilitate inter-agency
12 
subsector coordination, strategic development, planning, monitoring and
13 
provision of technical, institutional and financial capacity building support to their
14 
different stakeholders at the water subsector level.
15
16 
CHAPTER VI
17 
Water Regulatory Commission
18 
SEC. 29. Establishment - There is hereby created and established an
19 
independent, quasi-judicial regulatory body to be known as the Water Regulatory
20 
Commission, hereinafter referred to as the Commission. The Commission shall have a
21 
Board of Commissioners, and shall be vested with powers and functions, as conferred
22 
and set forth hereunder.
23 
SEC. 30. The Central and Regulatory Units. - The Regulatory Units of the
24 
Commission shall be composed of the Regional Regulatory Units and the Central
25 
Regulatory Unit.
26 
The economic regulatory units and functions of the MWSS, NWRB, and LWUA
27 
are hereby transferred to the Commission, and shall collectively comprise its Central
28 
Regulatory Unit for Water Supply, Sanitation and Sewerage Services that: (a) provide
29 
services to more than one province; and (b) are owned, operated, or maintained by
30 
Metro Manila concessionaires.
32


1 
The Regional Regulatory Units shall be established by the Commission in
2 
accordance with the rules, regulations, guidelines, and standards that the Commission
3 
shall issue, and as provided in this Act.
4 
SEC. 31. Powers and Functions of the Commission. - The overall authority
5 
and powers of the Commission shall cover and apply to all service providers, whether
6 
private or public, providing or intending to provide water supply, including suppliers
7 
to subdivisions, bulk water suppliers, and other providers for sewerage, and septage
8 
treatment and disposal services for domestic, residential, institutional, industrial or
9 
commercial use.
10 
The Commission shall exercise the following powers and functions:
11 
a) 
Issue and promulgate rules, regulations and guidelines as may be necessary to
12 
implement and enforce its powers and functions under this Act;
13 
b) 
Issue licenses authorizing the operation of water supply, sanitation, and
14 
sewerage services in any specified area or areas within the Philippines;
15 
c) 
Issue rules and regulations on terms and conditions prescribing minimum and
16 
mandatory terms for concession agreements, joint venture agreements,
17 
management agreements, service contracts or other contractual arrangements
18 
that may be entered into by government entities including local water utilities,
19 
LGUs, private sector entities, or other water service providers for the provision
20 
of water, sanitation, or sewerage services, such as, but not limited to the (i) the
21 
term, scope and total cost of the activity, which may be subdivided into phases;
22 
(ii) committed contributions and corresponding performance security
23 
requirements in accordance with any agreed phased implementation of the
24 
activity; and (iii) cost recovery schemes and percentage of the parties' share in
25 
the profits and losses, among others;
26 
d) 
Require the review or approval of contracts or agreements that may impact on
27 
the tariff and rates of service provision entered into by service providers upon
28 
petition or motuproprio when public interest so dictates;
29 
e) 
Set, regulate, review, and monitor the tariffs, rates, charges, and fees for the
30 
use of water resources in the Philippines, including irrigation service fees, bulk
31 
water rates, and septage rates, which may be delegated to the Regulatory Units;
33


f)
1 
2
3
4
5
6
7
8 
9
10 
11 
12
13
14
15
16
17
18
19
20 
j)
21 
22
23
24
25
26
27
28
29
30
31
g)
h)
i)
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 ilicensee has failed to meet or comply with terms, conditions, 
and performance targets, including but not limited to service expansion, 
that may have targets, including but not limited to service expansions, 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, sanitation, and sewerage 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;
Promulgate and enforce just and reasonable technical standards, classifications 
and measurements of service;
Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities;
Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof; 
Coordinate with the Philippine Competition Commission (PCC) by providing 
technical support in the PCC's exercise of authority and jurisdiction to establish 
rules and enforce regulations to monitor, investigate, provide remedies for, and 
deliberate on cases involving any market power abuse or anti-competitive or 
discriminatory act or behavior by or against any participant in the water supply, 
sanitation, and sewerage sector. Without prejudice to the actions that the 
Philippine Competition Commission, pursuant to Republic Act No. 10667, may 
undertake on its own, the Water Regulatory Commission may be directed by the 
Philippine Competition Commission, upon finding that a market participant has 
engaged in, or fell victim to such act or behavior, to stop or redress the same 
within the functions and powers granted to the Water Regulatory Commission 
under this Act;
34


k)
l)
m)
n)
1 
2
3
4
5
6
7
8 
9
10 
11 
12
13
14 
0)
15
16
17
18
19
20 
21 
22
23
24 
r)
25
26
27 
s)
28
29
30
31
32
P)
q)
t)
Adopt and require that books, records, and accounts be kept and maintained in 
accordance with the prescribed uniform accounting system;
Require the submission of plans, reports on finances and operations, 
performance targets, and accomplishments verified under oaths by the owner or 
president and secretary of the licensee;
Determine and require the monitoring and submission of such data, statistics, 
and other information from any or all licensees as may be necessary for the 
effective and efficient exercise of its duties, functions, powers and 
responsibilities: Provided, That such data, statistics, and other information shall 
also be submitted to the Department for integration in the centralized database 
on water resources;
Fix and determine proper and adequate rates of depreciation of properties and 
equipment used in water supply, sanitation, and sewerage services;
Impose and collect annual levies and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers, and functions of the Commission: 
Provided, That the rate of annual levies and fees shall be determined strictly on 
a cost recovery basis for the reasonable and actual cost of regulation in 
accordance with applicable rules and regulations on the imposition and increase 
of charges;
Investigate, motu proprio or upon complaint in writing, any matter concerning 
the operation of the service and violations of this Act;
Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu proprio y\o\3^\ons)
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;
Impose penalties and fines, which may include, but is not limited to, rebates, 
refunds, and credits to affected consumers, against any licensee or against its 
owners, directors, officers, agents or representatives for any violation of this Act 
or of the license, order, rule regulation or requirement issued by the Commission; 
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
35


1 
Act or of the license, order, rule regulation or requirement issued by the
2 
Commission;
3 
u) 
Appoint an interim or temporary management committee upon appeal and after
4 
due hearing, to ensure continuity of service in cases a licensee fails to meet
5 
conditions of the license;
6 
v) 
Advise, apprise, and coordinate with the Department, the National Water Sector
7 
Policy Council, and other relevant agencies of the national or local government
8 
on any matter relating to water supply, sanitation, and sewerage services;
9 
w) 
Deputize any official or agency of the government to assist in the performance
10 
of any of the powers and functions of the Commission;
11 
x) 
Appoint, hire, and maintain the Central and Regional Regulators, adequate staff
12 
and personnel, advisers, and consultants, with suitable qualifications and
13 
experience, as necessary, subject to existing civil service laws, rules, and
14 
regulations;
15 
y) 
Exercise original and exclusive jurisdiction over all cases contesting rates, fees,
16 
fines and penalties imposed by the Regulatory Units in the exercise of their
17 
powers, functions and responsibilities, as provided under this Act, and over all
18 
cases involving disputes between and among participants or stakeholders in the
19 
water supply, sanitation, and sewerage services; and
20 
z) Such other incidental powers and functions as may be necessary to attain the
21 
objectives of this Act,
22 
SEC. 32. Composition of the Water Reguiatory Commission. - The
23 
Commission shall be a collegial body composed of five (5) full-time members
24 
consisting of a Chairperson and four (4) members, who shall all be appointed by the
25 
President of the Philippines. All members of the Commission must be citizens and
26 
residents of the Philippines, at least thirty five (35) years of age, and of good moral
27 
character, recognized integrity and competence in the field of law, business,
28 
commerce, finance, accounting or public administration, water or utility economics,
29 
management, physical or engineering services, hydrology and other related services,
30 
with at least three (3) years of actual and distinguished experience in their respective
31 
fields of expertise.- Provided, That out of the four members of the Commission, at least
32 
one (1) shall be a member of the Philippine Bar with at least ten (10) years of
36


1 
experience in the active practice of law, at least one (1) shall be a certified public
2 
accountant with at least ten (10) years of experience in active practice; and at least
3 
one (1) shall be a licensed engineer with at least ten (10) years of experience in the
4 
water supply, sewerage, or septage management sector.
5 
The term of office of each member of the Commission shall be seven (7) years:
6 
Provided, That among the members first appointed, the Chairperson shall serve for a
7 
period of seven (7) years, two (2) members shall serve for five (5) years and the
8 
other two (2) members shall serve for three (3) years: Provided, further. That any
9 
member whose term has expired as specified herein shall serve as such until his
10 
successor shall have been appointed and qualified: Provided, furthermore. That any
11 
appointment to fill a vacancy in the Commission arising from death, removal,
12 
retirement or resignation shall be made only for the unexpired term: Provided, finaliy,
13 
That in no case shall any member serve for more than seven (7) years in the
14 
Commission.
15 
The Commission shall meet as often as may be necessary on such day or days
16 
as the Chairperson may fix. The presence of at least three (3) members of the
17 
Commission shall constitute a quorum, which shall be necessary for the transaction of
18 
any business. The affirmative vote of majority of the members of the Commission
19 
where a quorum is present shall be necessary for the adoption of any order, resolution,
20 
decisions, or other act of the Commission in the exercise of its quasi-judicial functions:
21 
Provided, That in promulgating rules, regulations, guidelines and in the exercise of its
22 
quasi-legislative functions, an affirmative vote of three (3) members shall be required.
23
24 
The Chairperson of the Commission shall exercise general executive control and
25 
supervision of the Commission and its members, staff and personnel, agents, and
26 
representatives. Within three (3) months from the creation of the Commission and the
27 
appointment of all members of the Commission, the Chairperson shall submit for the
28 
approval by the President of the Philippines the new organizational structure and
29 
personnel positions necessary to carry out the powers and functions of the
30 
Commission, subject to the review and approval of the DBM. The personnel positions
31 
of the Commission shall be filled by regular appointments in accordance with civil
32 
service laws, rules, and regulations.
37


1 
Members of the Commission shall enjoy security of tenure and shall not be
2 
suspended or removed from office except for just cause as specified by law.
3 
The Chairperson and members of the Commission or any of their relatives within
4 
the fourth civil degree of consanguinity or affinity, legitimate or common law, shall be
5 
prohibited from holding any interest whatsoever, either as investor, stockholder,
6 
officer or director, in any company or entity engaged in provision of water supply and
7 
distribution, septage management and sewerage services and must, therefore, divest
8 
through sale or legal disposition of any and all interests in the water sector upon
9 
assumption to office.
10 
SEC. 33. Secretariat of the Commission. - The Commission shall establish
11 
a Secretariat which shall provide the Commission with technical and support services
12 
such as, but not limited to the following:
13 
a) Provide the necessary technical inputs and secretariat support to the Commission
14 
to facilitate the conduct of its functions;
15 
b) Coordinate with, monitor, and assess the activities of the Regulatory Units to
16 
ensure proper implementation of the rules, regulations, and guidelines
17 
promulgated by the Commission;
18 
c) Maintain a database on the water supply, sanitation, and sewerage subsector;
19 
and
20 
d) Coordinate with other relevant agencies of the national or local government on
21 
any matter relating to water supply, sanitation, and sewerage.
22 
SEC. 34. The Commission Secretariat - The Executive Director shall head
23 
the Commission Secretariat, keep and maintain the official records, and report of the
24 
proceedings of the Commission, and administer oaths in all matters falling within the
25 
jurisdiction of the Commission.
26 
The Commission shall appoint, fix the compensation, and determine the status,
27 
qualifications, and duties of the Executive Director and the Secretariat staff subject to
28 
civil service laws, rules, and regulations. The Executive Director shall have at least ten
29 
(10) years of experience in the field of law, business, commerce, finance, accounting
30 
or public administration, water or utility economics, management, physical or
31 
engineering services, hydrology and other related services. The members of the
32 
technical staff, except those performing purely clerical functions, shall possess at least
38


1 
a Bachelor's Degree in any of the following lines of specialization: law, public
2 
administration, economics, finance, engineering, accounting, or management.
3 
The Executive Director shall be responsible for the effective implementation of
4 
the policies, plans, programs, rules, regulations, and directives of the Commission;
5 
coordinate and supervise the activities of the different operating units under the
6 
Commission; and perform such functions as may be assigned by the Chairperson and
7 
other members of the Commission.
8 
SEC. 35. Enhancement of Technical Competence. - The Commission shall
9 
establish rigorous training programs for its staff for the purpose of enhancing the
10 
technical competence of the Commission in the following areas: evaluation of technical
11 
performance and monitoring compliance with service and performance standards,
12 
performance-based rate-setting reform, environmental standards, and such other
13 
areas as will enable the Commission to adequately perform its duties and functions.
14 
SEC. 36. Compensation and Other Emoluments. - The compensation of
15 
the members of the Commission and its staff shall be exempted from the coverage of
16 
Republic Act. No. 11466, otherwise known as the "Salary Standardization Law of
17 
2019", as amended. For this purpose, the schedule of compensation of the
18 
Commission shall be submitted for approval of the President of the Philippines. The
19 
compensation schedule of the Commission shall be implemented within six (6) months
20 
from the effectivity of this Act and maybe upgraded by the President of the Philippines
21 
as the need arises: Provided, That in no case shall the compensation of the
22 
Commission and its staff be upgraded more than once a year: Provided, further, That
23 
pertinent civil service laws, rules, and regulations shall be applicable to the
24 
Commission.
25 
The Chairperson and members of the Commission shall initially be entitled to
26 
the same salaries, allowances and benefits as those of the Presiding Justice and
27 
Associate Justices of the Court of Appeals, respectively.
28
29 
CHAPTER VII
30 
Registration and Licensing
31 
SEC. 37. Registration and Licensing of AH Water Supply, Sanitation, and
32 
Sewerage Services. - All water supply, sanitation, and sewerage service providers.
39


1 
including bulk water suppliers and those providing services to subdivisions and other
2 
service providers, shall register with the Commission and, subject to its rules,
3 
guidelines, procedures and other issuances of the Commission, obtain a license to
4 
operate from the appropriate regulatory units: Provided, That the Commission shall
5 
act on the application for the issuance or the conversion of such licenses and renewals
6 
thereof within the maximum period of one (1) year as provided under this Act or by
7 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient
8 
Government Service Delivery Act of 2018".
9 
The Commission shall also ensure that the grant and revocation of licenses are
10 
carried out fairly, transparently, and without discrimination. Issuances of the
11 
Commission shall specify, among others, the qualifications, requirements and
12 
procedure for the grant and revocation of licenses including the standards and
13 
performance targets that shall continuously be complied with to keep the licenses
14 
valid.
15 
The Commission shall specify the requirements and procedure for existing
16 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience
17 
and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by
18 
LWUA, to convert their existing certificates into licenses to operate.
19 
All local water utilities, existing water service providers, or holders of CPCN or
20 
CoC shall be duly prioritized in the issuance of the licenses to operate over the areas
21 
where they currently operate or as may be covered by their franchises. The submission
22 
of the CPC, CPCN, provisional authority, or the CoC shall be sufficient basis for the
23 
issuance of the new and converted or updated licenses to operate required and
24 
contemplated under this Act. To ensure continuity of service, the Commission shall
25 
complete the issuance of such converted or updated licenses not later than six (6)
26 
months from the effectivity of the implementing rules and regulations issued by the
27 
Commission pursuant to this Act.
28 
Unless otherwise provided in this Act or by the Commission, no public water
29 
supply, sanitation, and sewerage service provider shall commence or conduct the
30 
business of providing water supply, sewerage, and sanitation services without first
31 
obtaining a license.
40


1 
Concession agreements and other contracts for water supply provision and water
2 
sanitation and treatment services currently existing shall remain valid and enforceable
3 
unless otherwise terminated, after due notice and hearing for reasons provided in the
4 
existing terms and conditions under the concession or service agreement or contract,
5 
or invalidated by the Commission, after due notice and hearing, where national
6 
security, national emergency, or public interest so dictates.
7 
SEC. 38. Conditions of License. - The Commission may impose such
8 
conditions in the issued license, as it may deem necessary, such as, but not limited
9 
to:
10 
a) Tariffs, rates, and charges that may be imposed from its customers or
11 
consumers;
12 
b) Term fixing the duration of the privilege;
13 
c) Grounds for modification, suspension, or cancellation of the license;
14 
d) 
Minimum technical performance and service level standards, such as but not
15 
limited to: (i) water pressure; (ii) minimum flow rates; (iii) connections; (iv)
16 
sewerage discharge, billing, and metering requirements, and (v) sanctions for
17 
failure to comply with the standards set;
18 
e) 
Expansion targets and service level improvements over time;
19 
f) 
Restrictions or conditions for transferability of the business or controlling interest
20 
in the business;
21 
g) Reportorial requirements and obligations of the grantee; and
22 
h) 
Submission to annual performance audit by the Commission or its duly
23 
authorized representative.
24 
SEC. 39. Rights and Duties of Licensees. -
25 
a) 
Any person granted a license under this Act or with existing rights under
26 
concession agreements and related agreements shall have the obligation to
27 
ensure that licensed activities are conducted to further public interest and, in
28 
particular:
29 
(1) Foster the maintenance and development of efficient, coordinated, and
30 
viable operation of their licensed activities;
31 
(2) Ensure that their water supply, sanitation, and sewerage services are
32 
provided in a diligent, conscientious and workman like manner, in
41


1 
accordance with applicable laws rules and regulations issued by the
2 
Commission and the generally accepted standards and practices in the
3 
water supply, sanitation, and sewerage industry;
4 
(3) Comply with drinking water quality requirements and standards that may
5 
be established by the Commission, Department, and DOH; and
6 
(4) Ensure that provision of services shall not be discontinued without notice
7 
to, and approval by, the Commission.
8 
b) 
Any person granted a license under this Act shall, to the extent allowed by law
9 
and specified in the license, has the right to acquire or lease land, lay or repair
10 
water or sanitation mains, and other relevant facilities in public ways to fulfill the
11 
terms and conditions under the license;
12 
c) 
Subject to any condition or limitation laid down in the license, a licensee may
13 
discontinue water supply, sanitation, and sewerage services to a customer if such
14 
customer defaults in the payment of fees due to the licensee for the water
15 
supplied or sanitation services provided, or for acts of pilferage pursuant to
16 
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the
17 
"Water Crisis Act of 1995";
18 
d) Any license issued under this Act shall contain provisions designed to ensure that
19 
licensees:
20 
(1) Publish the Tariff and other charges approved by and the terms and
21 
conditions imposed by the Commission for the provision of water supply,
22 
sanitation, and sewerage services;
23 
(2) Prepare, within three (3) months from the issuance of a license, in
24 
consultation with its customers, a customer service code specifying the
25 
manner and procedure for:
26 
i. 
Metering, billing, and collection of the licensee's approved tariff and
27 
other charges;
28 
ii. 
Disconnection or suspension of service in case of non-payment of
29 
tariffs and other charges, or acts of pilferage; and
30 
iii. 
Recommendation and recovery of arrears in tariffs and other charges.
31 
(3) Maintain financial accounts in accordance with the manner and procedure
32 
specified in the license and as may be required by the Commission; and
42


1 
(4) Maintain and, upon request by anyone during regular office hours, promptly
2 
make available for scrutiny and inspection such data, statistics and other
3 
information, as may be required by the Commission.
4 
SEC. 40. Setting Tariffs, Rates and Other Charges. - The Commission shall
5 
establish tariffs, rates and other charges which are fair and reasonable, and ensure
6 
environmental sustainability, economic viability, and a fair return on investments.
7 
Service providers may apply for the setting of tariffs, rates, and charges based
8 
on and consistent with a scientific and evidence-based rate-setting methodology that
9 
the Commission shall, after due consultation, define and publish, taking into account
10 
the following, among others:
11 
a) Reasonable and prudent capital and recurrent costs of providing the service
12 
including a reasonable rate of return on capital;
13 
b) 
Efficiency of the service;
14 
c) Incentives for enhancement of efficiency;
15 
d) 
Capacity to pay of consumers;
16 
e) 
Equity considerations;
17 
f) 
Environmental sustainability;
18 
g) 
Administrative simplicity;
19 
h) 
In cases involving valid and subsisting concession agreements prior to the
20 
enactment of this Act, the methodology provided under the concession
21 
agreement; and
22 
i) To the fullest extent practicable, the terms and conditions of the tariffs, rates or
23 
other price-setting mechanisms set forth in any concession agreement, joint
24 
venture agreement or other similar agreement for the provision of water or
25 
sanitation services by an existing service provider.
26 
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid
27 
and reasonable unless invalidated by the Commission, after due notice and hearing,
28 
acting on a protest or contest duly filed with the Commission to ensure continuity of
29 
service, application for setting of tariffs, rates and other charges shall be decided
30 
within a non-extendible period of ninety (90) days from the date of filing thereof, and
31 
the failure of the Commission to act on any such applications shall result in a
32 
provisional approval: Provided, That in no case shall proceedings on any applications
43


1 
for the setting of tariffs, rates and other charges exceed to a total period of one
2 
hundred twenty (120) days reckoned from the date of filing of the application.
3 
SEC. 41. Direct Access. - Fifty-one percent (51%) of the registered water
4 
consumers in a service area, municipality, city or province may petition for direct
5 
access to water from any water service provider subject to concurrence by and
6 
reasonable compensation to the service provider and approval by the Commission. If
7 
the petition for direct access from any water service provider is approved by the
8 
Commission, the new water service provider shall reimburse the existing service
9 
provider for, as applicable, either the book value or the market value as determined
10 
by an independent appraiser accredited by the Commission, whichever is higher, of
11 
the water source, water supply, or water distribution or transmission facilities,
12 
pipelines and other equipment which shall be transferred to or utilized by the new
13 
water service provider. The Commission shall promulgate the implementing rules and
14 
procedures for this mode of service, which shall include, among others, financial and
15 
technical capability of the new service provider.
16 
SEC. 42. Innovative Schemes to Improve Efficiency and Management
17 
of Systems. - The Commission shall promote innovative schemes such as the
18 
consolidation or integration of water supply, sanitation, and sewerage services, or
19 
providers in the same service area, where it shall result in improved efficiency, service
20 
expansion and lower costs.
21 
To this end, the Commission shall establish and issue such rules and guidelines
22 
as may be necessary to (a) create performance-based and time-bound incentives to
23 
encourage efficiency and service expansion; (b) establish the standards and targets
24 
that service providers are required to meet; and (c) define the fines and penalties that
25 
shall be imposed for failure to meet such standards and targets.
26
27 
CHAPTER VIII
28 
Proceedings Before the Commission
29 
SEC. 43. Proceedings Before the Commission. - For the purpose of any
30 
investigation, inquiry, or proceeding, the Commission shall:
31 
a) Issue subpoena duces tecum and subpoena ad testificandum]
44


1 
b) Appoint hearing officers to hear and receive evidence on behalf of the
2 
Commission;
3 
c) Cite any person or party for contempt for refusal to appear, testify or comply
4 
with an order of the 
Commission on any matter that is the subject 
of
5 
investigation, inquiry or proceeding before the Commission.
6 
SEC. 44. Orders and Decisions of the Commission. - Any order, resolution,
7 
or decision of the Commission shall be promulgated promptly, expeditiously,
8 
reasonably, and in writing, and shall state clearly and distinctly the facts and law on
9 
which it is based. The Commission shall publish and make available for public
10 
inspection, all decisions and final orders in the adjudication of contested cases or
11 
applications.
12 
SEC. 45. Appeals Procedure. - The orders, rulings, and decisions of the
13 
Commission are final and executory unless appealed to the Court of Appeals within
14 
fifteen (15) days from receipt of notice of such order, ruling or decision: Provided,
15 
That orders, rulings, and decisions of the Commission approving tariffs, shall be
16 
immediately executory and may be suspended only upon appeal and filing of a bond,
17 
in an amount to be fixed by the Commission, to answer for damages occasioned by
18 
the suspension or stay of execution of such orders, rulings, and decisions.
19 
SEC. 46. Prohibition Against Injunctions. - Except for the Supreme Court,
20 
no temporary restraining order, preliminary injunction, or preliminary mandatory
21 
injunction may be issued by any court to restrain any proceeding before, or the
22 
implementation or execution of any order, ruling, or decision of the Commission.
23
24 
CHAPTER IX
25 
Transitory Provisions
26 
SEC. 47. Transition Period. -The Department shall, by virtue of this Act, be
27 
subrogated to all the rights and assume all the functions of the government agencies
28 
and units whose powers and functions have been subsumed, absorbed, transferred or
29 
attached to the Department. The Commission shall also, by virtue of this Act, be
30 
subrogated to all the rights, and assume all the functions, of the Water Utilities Division
31 
of the NWRB, the regulatory offices of MWSS and LWUA, and all other government
45


1 
agencies and units whose powers and functions have been transferred to the
2 
Commission in accordance with the civil service laws, rules, and regulations.
3 
The transfer of powers and functions to the Department or the Commission of
4 
the concerned agencies as herein provided for, shall be deemed completed within six
5 
(6) months after the effectivity of this Act.
6 
All agencies transferred, subsumed and attached to the Department or the
7 
Commission, shall continue to function under their present mandates until the six-
8 
month transition period mandated under this Act shall have lapsed. The transfer of
9 
powers and functions shall include all applicable funds, personnel, records, property
10 
and equipment, as may be necessary. The heads of the affected agencies shall
11 
continue to serve until replaced.
12 
All rights and functions of the affected agencies are hereby transferred to and
13 
assumed by the Department or the Commission, and shall be acted upon in
14 
accordance with the rules and regulations of the Commission on Audit and other
15 
pertinent laws, rules, and regulations.
16 
SEC. 48. Absorption or Separation from Service of Empioyees of the
17 
Subrogated Agencies. - The current employees of all government agencies and
18 
units whose powers and functions have been transferred to, absorbed or subsumed
19 
by the Department or Commission shall enjoy security of tenure, in accordance with
20 
their staffing pattern and the selection process as prescribed under Republic Act No.
21 
6656 or the "Government Reorganization Law".
22 
Employees opting to be separated from the service as a consequence of the
23 
consolidation and reconstitution under the provisions of this Act, shall, within one (1)
24 
month from their separation or phase out from the service, receive separation benefits
25 
in accordance with existing laws and those who are qualified to retire shall be allowed
26 
to retire and be entitled to all benefits under existing retirement laws, subject to
27 
existing rules and regulations of the Commission on Audit.
28
29 
CHAPTER X
30 
Final Provisions
31 
SEC. 49. Appiicabiiity of Ease of Doing Business Law. - The prescribed
32 
processing time provided under Section 9(b) of Republic Act No. 11032 shall be
46


1 
applicable to all agencies and LGUs covered under this Act particularly on accessing
2 
government services.
3 
SEC. 
50. Appropriations. - The amount necessary for the initial
4 
implementation of this Act shall be charged against the current year's appropriations
5 
of the agencies, entities, divisions, sections or units subsumed or transferred to the
6 
Department. Thereafter, such amount shall be included in the annual General
7 
Appropriations Act.
8 
SEC. 51. Impiementing Rules and Regulations. — Upon the effectivity of
9 
this Act, the Department and the Commission, as may be applicable, as well as NEDA,
10 
DBM, DENR, CSC, and the National Commission on Indigenous Peoples in consultation
11 
with concerned government agencies shall promulgate the implementing rules and
12 
regulations (IRR) of the Department and the Commission necessary for the effective
13 
implementation of this Act within one hundred eighty (180) days after its effectivity.
14 
SEC. 52. Separability Clause. -If any reason, portion, or provision of this Act
15 
is declared unconstitutional, the remainder hereof or any provisions not affected
16 
thereby shall remain in force and effect.
17 
Sec. 53. Repealing Clause. - The following provisions and issuances are
18 
hereby repealed:
19 
a) Section 3 (h) and Section 12 on the fixing of water rates and sanitation service
20 
fees. Section 3 (n) on regulation of waterworks and deep wells, and Section 3
21 
(p) on the regulation of waterworks and sanitation systems in privately owned
22 
subdivisions of Republic Act No. 6234 which created the Metropolitan
23 
Waterworks and Sewerage System;
24 
b) Section 62 on regulation and Section 63 on rate review of Presidential Decree
25 
No. 198 otherwise known as the "Provincial Water Utilities Act of 1973", as
26 
amended by Letter of Instruction No. 700 - "Providing Measures To Control And
27 
Regulate Increase In Water Rates", Letter of Instruction No. 744 - "Relative To
28 
Reliable Water Supply At Reasonable Rates In The Countryside", Executive Order
29 
No. 124-A, series of 1987 - "Reorganization Act of the Ministry of Public Works
30 
and Highways", and Executive Order No. 123,30 January 1987 - "Reorganization
31 
Act of Ministry of Social Services and Development";
47


1
2
3
4
5
6
7
8 
9
10
11
c) 
Executive Order No. 22, series of 2023, creating the Water Resources 
Management Office of the DENR; and
d) 
Section 154, Article V, Chapter I, Title One, Book II of Republic Act No. 7160 
otherwise known as the "Local Government Code of 1991", as amended, and its 
implementing rules and regulations on the power of the LGUs to fix the rates of 
water utilities owned, operated and maintained by them within their jurisdiction. 
Any other law, presidential decree or issuance, executive order, letter of
instruction, rule, or regulation inconsistent with the provisions of this Act is hereby 
repealed or modified accordingly.
Sec. 54. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
48