Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____________ 
Introduced by MARINO Party-list Representatives 
SANDRO L. GONZALEZ 
AN ACT 
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND 
THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, 
POWERS AND FUNCTION , AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
This bill seeks to create a Department of Water Resources and Water Regulatory 
Commission and an Integrated Water Regulatory Commission. 
Access to potable and sanitary water is still our country’s problem. Tens of millions of 
Filipinos would still get their water from unclean and contaminated water. Moreover, sanitation 
facilities are still proven lacking to millions of Filipino homes. Consequently, they are vulnerable 
to water-related illnesses. It also affects livelihoods of our fisherfolk as polluted waters brought by 
lack of sanitation facilities would cause red tides and fish kills.  
Governance and maintenance of our water resource remains fragmented and 
uncoordinated, which contributed to our problem of unpotable and unsanitary water. Thus, there 
is a need of a department, which shall serve as the primary agency responsible for national policy-
making, coordination, and management of all the water resources in the Philippines. All 
government agencies related to water shall be rationalized under this Department.  
 Meanwhile, the Integrated Water Regulatory Commission shall enforce effective and 
adequate delivery of water and sanitation services throughout the country under a coverage or 
framework of quality and performance targets. It must be emphasized that another problem to be 
addressed is the water supply level of service and quality of service, which this Commission shall 
address.   
August 29, 2023
5:11 pm
8998


Thus, this proposed measure seeks to create a Department of Water Resources and Water 
Regulatory Commission and an Integrated Water Regulatory Commission. 
In view of the foregoing, approval of this bill is most urgently and earnestly recommended. 
SANDRO L. GONZALEZ 
Representative 
MARINO Party-list 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____________ 
Introduced by MARINO Party-list Representatives 
SANDRO L. GONZALEZ 
AN ACT 
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND 
THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, 
POWERS AND FUNCTION AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of the Philippines in Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Short Title. -  This Act shall be known as the "National Water Act”. 
SEC. 2. Declaration of Policy.  -  Access to water is a basic human right. All water 
belongs to the State which shall govern its development and utilization for the people. 
It is hereby declared the policy of the State to ensure the provision of safe, 
adequate, affordable, and sustainable water supply and improved sanitation services, 
while maintaining the protection, preservation, and revival of the quality of the country’s 
water resources and ecological balance. 
In pursuit of this policy, this Act shall have the principal objective of ensuring and 
accelerating universal access to water supply and sanitation services, in a regulatory 
regime that encourages responsible private sector participation, and shall foster and 
prioritize the establishment of infrastructure and public works that adopt innovative 
8998


solutions and international best practices to address the challenges of climate change. 
Further, all water and water treatment infrastructure projects are hereby declared as 
projects imbued with national interest. 
 
SEC. 3. Definition of Terms. As used in this Act: 
 
(a) Bulk water supplier refers to any entity, natural or juridical, whether public or private, 
supplying or intending to supply large quantities of raw or treated water to buyers who 
will use these for their own consumption, such as industrial companies, or for retail 
distribution to consumers such as water service providers real estate developers 
managing their own distribution network. 
(b) Environmental services refer to qualitative functions of natural non-produced assets 
of land, water, and air, including related ecosystems, and their biota, and which may 
be categorized into three basic types: (a) disposal services which reflect the functions 
of the natural environment as an absorptive sink for residuals; (b) productive services 
which reflect the economic functions of providing natural resource inputs and space 
for production and consumption, and (c) consumer or consumption services which 
provide tor physiological as well as recreational and related needs of human beings. 
(c) Flood Control refers to methods, acts, and protocols to be observed in order to 
prevent and reduce the detrimental and catastrophic effects of flood waters which 
include sediment-laden or turbid flows, and hyper-concentrated flows or debris flows. 
(d) Flood Risk Management (FRM) refers to such acts of defining and determining the 
appropriate methods, acts, and protocols aimed at preventing and reducing the risk 
of incurring loss of both life and property due to flood waters. Flood risk management 
consists of a cycle of prevention, mitigation, adaptation, preparedness and early 
warning, and response and recovery. The elements of FRM include: integratıng land 
use planning and coastal zone management into water management; adopting a 
holistic approach so that FRM is part of wider risk or multi-hazard management of 
earthquakes, landslide a storm surges, managing risk and uncertainty as a whole so 
it not only mitigates hydrological uncertainties but also social, economic and political 
uncertainties on account of human behavior and the cultural dimensions of FRM. 


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


(k) Missionary Water Services refer to water supply or services to areas that have no 
existing safe water supply and services due to geographic limitation or absence of 
economic and market viabılity. 
(l) National Water Resources Management Plan (NWRMP) refers to a policy document 
that contains a framework to guide the development and management of all the water 
resources in the Philippines, the general strategies and work to be pursued to ensure 
the sustainability of the resource towards water security, and top-level direction on 
the utilization of existing water resources in line with national development plans, 
policies, and programs in accordance with the IWRM framework. The NWRMP shall 
also include water infrastructure development program or all waters of the country as 
well as provide general guidance on how this shall be supported within an integrated 
financing framework that can draw from public, private, and international development 
funding sources. 
(m) Net Waste Load refers to the difference of the initial  waste load of the final effluent 
discharge of industry. 
(n) Regulatory Unit refer to the offices established under Section 20 of this Act which 
issue licenses authorizing the operation of Water Supply and Sanitation Services, and 
provide, review, determine, fix, and approve water and sewerage tariffs, rates and 
charges that licenses may impose. 
(o) 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. 
(p) River Basin Organization (RBO) refers to multi-stakeholder organizations which plan, 
coordinate, and monitor activities within a river basin cluster. 
(q) Sanitation refers to the provision of facilities and services for the safe management 
of human excreta, from toilet to containment, and storage and treatment onsite or 
conveyance, treatment and eventual sate end use or disposal, and incudes the safe 
management of solid waste and animal waste. 
(r) Sediment management refers to control of sediment erosion and deposition in rivers, 
reservoirs, and coastal zones through non-structural at  Structural measures and 
control works, 


(s) Sustainable Development Goals (SDGs) also know as the 17 Global Goals refer to 
the universal call to action to end poverty, protect the planet and ensure that all people 
enjoy peace and prosperity by 2030 adopted by all United Nations Member States in 
2015. 
(t) Septage is the liquid and solid material pumped from septic tank, cesspool, or other 
primary treatment source. 
(u) Septage Management refers to the provision of proper collection, treatment, and 
disposal of septage. 
(v) Service refers to the area covered by the water distribution system, sewage, and/or 
septage management services. 
(w) Service Provider refers to any entity, natural or juridical, whether private or public, 
providing or intending to provide levels II & III water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic 
residential, industrial, or commercial use. 
(x) 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 waters as 
may be present including such waste from vessels, offshore structures, other 
receptacles intended to receive or retain waste or other places or the combination 
thereof. 
(y) Sewerage refers any system or network of pipelines, ditches, channels or conduits 
including pumping stations, lift stations and force mains, service connections 
including including other infrastructure, devices, or appliances appurtenant thereto, 
which include the collection, transport, pumping and treatment of sewage to a point 
of disposal. 
(z) Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose sewage. 
(aa) Social inclusion refers to the process of improving the terms for disadvantaged 
individuals and groups to take part in society. 


(bb) Tariffs refer to such amounts which may be charged by licensees tor their water 
supply and sanitation services based on principles, standards, and guidelines 
establıshed by the Department of Water Resources. 
(cc) Water Demand Management (WDM) refers to any method whether technical, 
economic, administrative, financial, or social that will accomplish one or more of the 
following: 
 
(1) Reduce the quantity or quality of water required to accomplish a specific 
task; 
(2) adjust the nature of the task or the way it is undertaken so that it can be 
accomplished with less water or with lower quality water; 
(3) Reduce the loss in quantity or quality water as it  flow from source, through 
use, to disposal; 
(4) Shift the timing of use from peak to off-peak periods; and 
(5) Increased the ability of the Water system to continue to serve society during 
times when water is in short supply. 
 
(dd) Water Districts refer to government-owned and controlled corporations organized 
under Presidential Decree No. 198, as amended, created primarily to acquire, install, 
operate, maintain, and improve water supply and distribution systems for domestic, 
industrial and municipal uses of residents and to provide, maintain and operate waste 
water collection, treatment and disposal facilities within the boundaries of the district. 
(ee) Water pollution refers to any alteration of the physical, chemical, biological, or 
radiological properties of a body of water resulting in the impairment of its purity or 
quality. 
(ff) Water Resource refers to water under the ground or groundwater, water above the 
ground such as surface water, run-offs, fIoods, stormwater and urban drainage, 
treated wastewater, water in the atmosphere or rain water, and the waters of the sea 
within the territorial jurisdiction of the Philippines. 


(gg) Water Resources Regions refer to the contiguous clusters of river basins which 
are grouped together according to the hydrological boundaries, physiographic 
features, and homogeneity in climate. 
(hh) Water Service Provider (WSP) refers to the water district, any Local Government 
Unit (LGU)-run water utility, Barangay Waterworks and Sanitation Association 
BWSA), Rural Waterworks, Rural Waterworks Sanitation Association (RWSA), 
cooperative and private sector entity that provides water supply services to any given 
are. 
(ii) Water supply service refers to any activity comprising Levels I, III and water supply 
including bulk suppliers, suppliers to subdivisions, and other water service providers. 
 
CHAPTER II 
THE DEPARTMENT OF ATER RESOURCES 
 
SEC. 4. The Department of Water Resources – There is hereby created and 
established the Department of Water Resources, hereinafter referred to as the 
Department. 
 
SEC. 5. Mandate of the Department. – The Department shall be the primary 
agency responsible for the comprehensive and integrated identification and mapping of 
all water resources, planning, policy, formulation, and management of the ownership, 
appropriation, utilization, exploitation, development and protection of water resources in 
the Philippines to ensure the optimal use thereof for domestic and municipal water supply, 
sanitation, irrigation, hydropower, industry, navigation, flood management, and recreation 
except fisheries or agriculture. 
 
The Department shall also be the primary agency responsible for the planning an 
policy formulation towards the attainment of universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sanitation services for all 
Filipinos. 


The Department shall be the primary national agency to enforce Presidential 
Decree No, 1067 otherwise known as The Water Code of the Philippines and Republic 
Act No. 9275, otherwise known as the Philippine Clean Water Act of 2004. 
 
The Department shall exercise the powers and functions of the defunct Pasig River 
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and 
abolished under Executive Order No. 93 Series of 2019, specifically the following roles 
that were transferred to the Manila Bay Task Force and DENR through the latter EO: 
 
(a) Update and take the lead in the overall implementation of the Pasig River 
Rehabilitation Master Plan, which shall harness the Pasig River's potential for 
transportation, recreation and tourism purposes while undertaking the 
rehabilitation and restoration of its maritime life; and 
(b) Ensure that the easements provided for in the Civil Code and other relevant laws 
are enforced, especially in all the esteros and waterways that drain into the Pasig 
River as well as abate the dumping of untreated industrial wastewater and 
sewerage into the river, including all acts and all acts and omissions in violation 
of Presidential Decree (PD) No. 984, s 1976, as amended entitled, Providing For 
The Revision Of Republic Act No, 3931, Commonly Known As The Pollution 
Control Iaw, And For Other Purposes, PD No. 274, s. 1973 entitled, Pertaining 
To The Preservation, Beautification, Improvement And Gainful Utilization Of The 
Pasig River, Providing For The Regulation And Control Of Pollution Of The River 
And Its Banks In Order to Enhance Its Development. Thereby Maximizing Its 
Utilization For Socio-Economic Purpose, and other related laws. 
 
SEC. 6. Guiding Principles - In the pursuit of its mandate, tie Department shall be 
guided by the following key principles: 
 
(a) The concept of good water governance of water security and sufficiency shall 
be adopted across all levels of governance by stakeholders such as the 
national government, local government, non-government organizations, 


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


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


(f) Strengthen and coordinate policy making and planning towards ensuring the 
availability of water for food security and energy security, as well as towards 
ensuring the availability of water for food security and energy, as well as 
towards the protection of communities and environments against flood and 
other water induced hazards including sediment hazards; 
(g) Ensure that the strategy for water resources development and conservation is 
participatory, and that planners, policymakers and users including community 
members are involved at all levels; 
(h) Develop a standardized pricing framework for water use that accounts for 
environmental externalities; and 
(i) Ensure that all sources of water, including surface water, groundwater, 
rainwater and floodwater are identified, mapped, monitored, conserved and 
managed for productive use and the resulting wastewater is managed 
properly, reused, and responsibly disposed of following approved 
environmental standards. 
 
SEC. 8. Powers and Functions of the Department. - The Department shall have 
the following powers and functions: 
 
I. Policymaking and Planning 
(a) Ensure that integrated Water Resources Management (IWRM) is adopted as the 
strategic framework tor water management policymaking and plannıng in the 
country and coordinate the implementation, promotion, revision and enhancement 
of IWRM plans; 
(b) Formulate policies, strategies, and target In coordination with other relevant 
entities to meet the goals and objectives for water supply and sanitation, water 
quality, irrigation, hydropower, flood control, stormwater utilization, and urban 
drainage.  Such policies shall, among other guidelines, integrate the issue of water 
and sanitation, food security, energy, environment and flood control, and climate 
change; 


(c) Formulate and develop policies to promote universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sanitation services for all 
Filipinos; 
(d) Regularly update, every five years or as deemed necessary by the Department, 
and in consultation with other agencies and stakeholders, the NWRMP following 
the IWRM framework and integrate therein a national land use plan, 
(e) Undertake river basin survey, inventory and appraisal of water and related 
resources, and develop comprehensive basin-wide plans of storage, retardation, 
and control to maximize conservation and multipurpose use of water in the basin: 
(f) Conduct continuing hydrological and hydrometeorological surveys and studies of 
the country's renewable water supply, and establish operate, and maintain 
observation station networks with a view towards formulating long-term policies to 
balance the sustainability and optimal multiple use of water resources, defining 
the hydrologic boundaries of basins of the existing water supply sources 
developing or updating boundaries of basins of the existing water supply sources 
and developing or updating and implementing countrywide comprehensive basin-
wide master plans; 
(g) Strengthen and coordinate policy making and planning for flood management, 
integrated with stormwater or urban drainage and appropriate retention or 
retarding basins in order to harvest and reuse water, and to plan against, prevent, 
and minimize the detrimental and catastrophic effects of flooding; 
(h) Assist and provide the National Economic and Development Authority NEDA) with 
the required data and input from the water sector in the formulation of the country’s 
short-term and long-term strategic development plans and actions, and 
recommend to the NEDA Board the adoption of general policies and guidelines 
for water resources development; 
(i) Review, approve, and provide oversight over all water-related development plans 
and programs of any agency within the context of the NWRMP, and overall 
national plans and programs; 
(j) Develop and implement, in coordination with other relevant agencies, effective 
codes, standards, benchmarks, and reasonable guidelines to ensure the safety of 


all public and private water structures in the country, and assure efficiency and 
proper quality in the construction of water, sanitation, irrigation, hydropower, flood 
control and drainage infrastructure; 
(k) Ensure that gender equality, social inclusion, environmental protection, climate 
resiliency, and disaster risk reduction are integrated into any water resource 
management planning, policy making, and the design and construction of water 
infrastructure; 
(l) Ensure that the planning and design of water infrastructure considers the highest 
efficiency and most appropriate technology and quality, in accordance with 
national development objectives; 
(m)Review existing guidelines appropriate for private sector participation in the water 
sector and submit recommendations to the Public-Private Partnership (PPP) 
Center of NEDA and other concerned agencies to promote and enable more 
PPPs in the sector; 
(n) Build a central repository of water data and effect inter-sectorial, inter-agency, and 
interdepartmental coordination on all aspects of data gathering and management 
for water resources development planning and compel the submission of statistics 
and data on water utilization with the aim of operationalizing the integrated 
approach to water resources management; 
(o) Ensure the effective implementation of all the provisions of Republic Act No. 9275, 
Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter II of 
Presidential Decree No. 856, otherwise known as the Code on Sanitation of the 
Philippines; 
(p) 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, environment 
and food security; and 
(q) Issue and promulgate rules, regulations and guidelines as may be necessary to 
implement and enforce its powers and functions under this Act. 
II. 
Resource Regulation 
(a) Manage and conserve the country’s water resources to ensure the optimal 
use thereof for domestic water supply, sanitation, irrigation, hydropower, 


navigation, flood control, and recreation purposes, and enhance and 
maintain water quality, conserve watersheds, control water pollution, and 
restore the environment, without compromising the natural ecosystem 
functions and services; 
(b) Regulate and control the utilization, abstraction, diversion and development 
of water resources, taking in consideration their equitable distribution 
among competing demands and determine the standards of beneficial and 
priority uses of water in times of crisis and national emergencies; 
(c) Formulate, promulgate, and enforce rules and regulations for the 
development and optimum use of water resources and its administration 
and management, including coherent water protocols, operating rules of all 
existing and future water infrastructure; general criteria, methods and 
standards for basic data collection and project identification, formulation 
and planning, and appropriate sanctions to be imposed for non-compliance; 
(d) Regularly review regulations prescribed by any government agency 
pertaining to water use, exploitation, development, and conservation or 
protection of waters, water resources, and watershed or basin areas with 
respect to this Act; 
(e) Impose fees or charges, as may be deemed necessary for water resources 
conservation and protection, such as: 
(1) Polluter’s Fee, which shall be based on the net waste load depending 
on the wastewater charge formula pursuant to Republic Act No. 9275; 
(2) Raw water price, which shall take into account, among others, the 
scarcity of water; and 
(3) Appropriate payment structures for environmental services: 
(f) Deputize LGUs to collect the national fees or charges for resource 
regulation within their respective jurisdictions; 
(g) Collect, regularly update, monitor, and analyze water resources data 
including climatology, hydrological and other water-related data and ensure 
that such data is easily accessible by relevant and authorized users; 
(h) Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and 
appraisal of surface and groundwater potentials of the country, and 
determine the annual renewable water available per water resources 
region; 
(i) Maintain a database that will contain updated relevant information on water 
data which will be accessible by relevant and authorized users; 
(j) Develop and continuously update a computerized decision support system 
that incorporates data management systems relating to acquisition and 
database, model base in terms of physical design, planning and decision 


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


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


(b) Establish the policies and standards for the operation of the Department 
pursuant to the President’s guidelines; 
(c) Promulgate rules and regulations necessary to carry out the objectives, 
policies, and functions of the Department; 
(d) Exercise supervision and control over all bureaus and offices under the 
Department; 
(e) Supervise all attached agencies and corporations in accordance with law; 
(f) Represent the Department in contracts, awards, and other similar agreements; 
(g) Delegate authority for the performance of any power or function, as defined 
herein to officials and employees under his direction as deemed appropriate; 
(h) Act as the Chairperson of the governing board of the attached agencies of the 
Department; 
(i) Designate and appoint officers and employees of the Department, excluding 
the Undersecretaries, Assistant Secretaries, and Regional and Assistant 
Regional Directors, in accordance with the civil service laws, rules and 
regulations; and 
(j) Perform such other duties and responsibilities as may be provided by law. 
 
 
SEC. 10. Office of the Secretary. — The Office of the Secretary shall be composed 
of the Secretary, Undersecretary, - ant Secretary and the Secretary’s immediate staff. 
 
 
SEC. 11. Undersecretaries. — The Secretary shall be assisted by not more than 
five (5) Undersecretaries, who shall be appointed by the President upon the 
recommendation of the Secretary namely: Undersecretary for Resource Regulation and 
Governance, Undersecretary for Inland Waters and Water for Agriculture, Undersecretary 
for Resource Development, Undersecretary for Planning and Policy and Undersecretary 
for Missionary Water, Indigenous People, and Special Concerns. 
 
 
The Secretary is hereby authorized to delineate and assign the respective 
functional areas of responsibility of the Undersecretaries in accordance with the mandate 
and objectives of the Department: Provided, That no Undersecretary shall be assigned 
purely to administrative responsibilities. Within their respective functional areas of 
responsibility, the Undersecretaries shall: 
 
(a) Advise and assist the Secretary in the formulation and implementation of the 
policies, plans, programs and projects of the Department; 
(b) Supervise all the operational activities of the assigned units for which the 
Undersecretary is responsible to the Secretary; and 
(c) Perform such other functions deemed necessary as may be assigned or delegated 
by the Secretary to promote efficiency and effectiveness in the delivery of public 


services or as may be required by law: Provided, That the Undersecretary for 
Planning and Policy shall, in coordination with the Planning and Policy Service, be 
primarily responsible for advancing current efforts in attaining the ultimate goal of 
universal access to water supply and sanitation systems, and sustainable 
management of water resources under the SDGs, and the integration of water, 
energy, environment and food security. 
 
 
SEC. 12. Assistant Secretaries. — The Secretary shall be assisted by six (6) 
Assistant Secretaries to be appointed by the President of the Philippines upon the 
recommendation of the Secretary: one each for Planning and Policy Service, Decision 
Support System Service, Resource Regulatory Service, Comptrollership and Financial 
Management Service, Legal and Legislative Service, and Administrative and Human 
Resources Management Service. 
 
 
No person shall be appointed Secretary, Undersecretary and Assistant Secretary 
of the Department unless the person is a citizen and resident of the Philippines, of good 
moral character, of proven integrity, competence and expertise in water resource 
management: Provided, That at least one (1) of the Undersecretaries and at least two (2) 
of the Assistant Secretaries shall be career officers. 
 
 
SEC. 13. Organizational Structure. — The Department shall be composed of the 
following organizational units: 
 
(a) Department Proper. — The Department shall consist of the Office of the Secretary, 
the Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit 
Office, the Public Affairs Office, the Water Pollution Adjudication Board, the 
Planning and Policy Service, Decision Support System Service, Administrative and 
Human Resources Service, Legal and Legislative Service, Comptrollership and 
Financial Management Service, Resource Regulation Service, and the Water 
Resources Regional Offices. 
 
(b) Attached agencies. - The Department shall exercise administrative supervision 
over the following agencies for purposes of policy and program coordination, 
monitoring, and evaluation: 
 
(1) The Local Water Utilities Administration (LWUA), whose mandate, powers, and 
functions are defined in Presidential Decree No. 198, otherwise known as the 
Public Water Utilities At of 1973, as amended, shall be transferred from the 
Department of Public Works and Highways and attached to the Department. It 
shall continue to primarily function as a specialized lending institution for the 


promotion, development, and financing of local water utilities. In the 
implementation of its functions, the LWUA shall: 
 
(i) prescribe minimum standards and regulations in order to assure acceptable 
standards of construction materials and supplies, maintenance, operation, 
personnel training, accounting and fiscal practices for local water utilities; 
(ii) furnish technical assistance and personnel training programs for local water 
utilities; 
(iii) monitor and evaluate local water standards; and 
(iv) effect system integration, joint investment and operation, district annexation 
and de-annexation whenever economically warranted as amended by Sec. 
22, Presidential Decree No. 768. 
 
(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandate, powers, and functions are defined under Republic Act No. 6234, as 
amended entitled, An Act Creating The Metropolitan Waterworks And 
Sewerage System And Dissolving The National Waterworks And Sewerage 
Authority; And For Other Purposes, shall be transferred from the DPWH and 
attached to the Department: Provided, That the MWSS shall continue to 
facilitate the exercise by the concessionaires of their responsibility; carry out 
accounting and notification functions; monitor, report, and administer loans; 
perform related functions in connection with existing projects; manage and 
dispose its retained assets; and manage and operate the Umiray-Angat 
Transbasin Project. 
 
(3) The National Irrigation Administration (NIA), whose mandate, powers, and 
functions are defined under Republic Act No. 3601 as amended by Presidential 
Decree No. 552 and Presidential Decree No. 1702; 
 
(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and 
functions are defined under Republic Act No. 4850, as amended entitled, An 
Act Creating The Laguna Lake Development Authority, Prescribing Its Powers, 
Functions And Duties, Providing Funds Therefor, And For Other Purposes shall 
be transferred from the DENR and attached to the Department.  
 
The LLDA shall continue to serve as the lake management and development 
authority similar to a multi-stakeholder river basin organization and shall ensure 
the implementation of the Laguna Lake Master Plan which shall be updated by 
the Department to ensure alignment with the NWRMP. 


Any other agency performing water resources management, conservation and 
protection functions may be transferred to the Department as the President deems 
necessary. 
 
(c) Offices, Functions und Personnel to be Completely Subsumed under the 
Department. - The following offices with their powers, functions, personnel, 
applicable funds and appropriations, records, equipment and property shall be 
subsumed under the Department: 
 
(1) The National Water Resources Board (NWRB) with all its divisions and 
sections, whose mandate, powers and functions are provided in Presidential 
Decree No. 424, as amended; 
(2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers 
and functions are provided in Executive Order No. 510 and Executive Order 
No. 816, as amended; 
(3) The Manila Bay Coordinating Office (MBCO) of the DENR which was 
strengthened by virtue of DENR Administrative Order (DAO) 2011-01 to 
coordinate the efforts of the fourteen (14) national agencies covered by the 
Mandamus Order of the Supreme Court to rehabilitate Manila Bay; 
(4) The Water Resources Management Division of the Bureau of Soils and Water 
Management of the Department of Agriculture (DA); 
(5) ‘The Water Supply and Sanitation Unit of the Department of the Interior and 
Local Government (DILG); and 
(6) The Water Quality Management Section of the Environmental Management 
Bureau (EMB) of the DENR. 
 
(d) Functions to be Transferred to the Department. — The following functions of the 
respective agencies, bureaus, and units shall be transferred to the Department: 
 
(1) The hydrological surveys and groundwater mapping function of the Mines and 
Geosciences Bureau (MGB) of the DENR; 
(2) The hydrological surveys monitoring of stream flow and water data collection 
function of the Bureau of Design and Bureau of Research and Standards of the 
DPWH; 
(3) )The protection and conservation of natural wetlands such as lakes, marshes, 
swamps of the Biodiversity Management Bureau of the DENR; and 
(4) The planning, programming, administration, monitoring, management of the 
National Sewerage and Septage Management Program (NSSMP) by the 
DPWH. 


(5) The flood management planning and sediment management function of the 
Flood Control Management Cluster of the DPWH; 
(6) The Water Resource Management Division and the water research functions 
of the Soils and Water Research Division of the Bureau of Soils and Water 
Management under the DA. All soil-related functions shall be retained under 
the Bureau which shall be renamed as the Bureau of Soils. 
 
(e) Support Services - The Department shall create the following support services: 
 
(1) The Planning and Policy Service shall provide the Department with the 
capability to undertake water infrastructure development planning and 
programming, and shall exercise the following functions: 
 
(i) Advise the Secretary on all matters relating to water resources planning; 
(ii) Assist the Undersecretary for Planning and Policy on all matters related to 
the specific functions of the position; 
(iii) Formulate strategies and priorities for water resources management and 
development consistent with national development objectives, and initiate 
or undertake relevant surveys for development planning; 
(iv) Develop and regularly update a comprehensive and integrated National 
Water Resources Management Plan and ensure its integration into existing 
land use plans; 
(v) Develop and regularly update a comprehensive and integrated National 
Water Resources Management Plan and ensure its integration into existing 
land use plans; 
(vi) Formulate or update existing River Basin Master or Comprehensive Plans 
which includes all aspects of water management and development such as 
- water supply and sanitation, irrigation, flood control and stormwater or 
urban drainage, drought risk management, water resource development 
systems and other public water works projects, including phasing of 
implementation; 
(vii) Identify, based on the river basin master plan, priority packages for water 
infrastructure development per river basin, including water supply, 
sanitation, irrigation, flood control and stormwater or urban drainage, 
drought risk management, water resource development systems and other 
public works projects, package project proposals for funding and prioritize 
project implementation and the allocation of funds and other resources and 
undertake or supervise and evaluate the conduct of feasibility studies and 
project preparation thereof; 


(viii) 
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; 
(ix) Gather, analyze. and organize needed statistical data and information; 
(x) Provide technical assistance related to its functions to the other services, 
bureaus and the regional offices as needed; 
(xi) Conduct hydrological and hydraulic surveys and assessments of surface 
waters; 
(xii) Develop general criteria and standards on project investigation, formulation, 
planning; 
(xiii) 
Develop guidelines and standards on social inclusion in water 
resources management and ensure policies, programs and plans are 
compliant with the gender and development framework of the government; 
(xiv) 
Coordinate closely with PAGASA for rainfall and other climate data 
which shall be considered in the planning for water resources development 
and management and for various water infrastructure; and 
(xv) 
Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective attainment of the abovementioned 
objectives. 
 
(2) The Decision Support System Service shall provide the Department with water 
resource management tools and computerized decision support system that 
incorporates a data management system relating to acquisition and database 
and model base in terms of physical design, planning and decision models 
including services related to networking, data management, and information 
and knowledge or learning management systems for administrative and non-
technical support It shall provide the Secretary timely reports on the status of 
various Department projects and activities. For this purpose, it shall exercise 
the following functions: 
 
(i) Provide the Secretary the necessary data and processed information to aid 
in policy and management decisions under the mandate of the Department; 
(ii) Publish available real-time raw water data as well as verified or validated 
water data in print or electronic form using latest internet technology; 
(iii) Conduct and publish in print and/or electronic form, standard data analysis 
such as basic statistical analysis, trend analysis, analysis of runs, and 
cluster analysis; 
(iv) Develop 
and 
continuously 
update 
water 
resource 
management, 
computerized decision support systems (DSS) that incorporate data 
management systems relating to acquisition and database, model base in 


terms of physical, design, planning and decision models, and user-friendly 
interface such as graphical and visualization tools. 
The DSS is composed of: 1) a measurement or data acquisition system; 2) 
information or database management system; 3) analytical and numerical 
models for design, planning, decision or evaluation purposes, and 4) a user-
friendly interface which includes graphical interface or visualization tools. 
 
(v) Develop and maintain specific models to include the following: 
 
(a) long-term climatologic and weather forecasting model; 
(b) watershed models and river-flood plain models; 
(c) groundwater models and coupled to surface water models; 
(d) flood forecasting model for major rivers; 
(e) optimization-simulation 
management 
models 
for 
watershed 
conservation, conjunctive surface and groundwater use, irrigation 
scheduling, normal and emergency operations of multi-purpose 
reservoirs; and 
(f) water quality and ecological models. 
 
(vi) Develop and administer the management information system and 
knowledge systems of the Department to: 
 
(a) Retrieve, process, and monitor information on all projects and activities 
in the web portal; 
(b) Conduct and apply systems and process engineering, software 
development, software configuration management; 
(c) Develop and manage its corporate database, unified database for water 
industry, data warehouse, other water information resources, library 
services and document management and archiving services; 
(d) Develop and manage its Information and Communications Technology 
(ICT) infrastructure and ICT related-services including computer 
networking and voice communications services and data exchange, and 
(e) Manage the literacy and training services of the Department on various 
ICT and, Knowledge Management (KM) tools and applications, including 
information and knowledge management. 
 
(vii) Perform such other related functions and activities which are necessary for 
the effective administration of the management information and knowledge 
systems of the Department. 


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


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


(v) Provide assistance in its area of specialization to any unit of the Department 
and, when requested, to government corporations and councils attached to 
the Department; and 
(vi) Perform such other related functions and activities which are necessary for 
the effective financial management of the Department. 
(6) The Resource Regulation Service shall provide the Department with services for 
the effective regulation of all water-related services and activities and shall exercise 
the following functions: 
(i) Advise the Secretary on all matters relating to resource regulations; 
(ii) Determine, grant and regulate water rights for the appropriate, optimal and 
sustainable use of surface and ground water, 
(iii) Determine and evaluate waterworks and sewerage licenses, and submit 
evaluation results to the Water Regulatory Commission for the latter’s 
consideration in granting of licenses; 
(iv) Investigate violations of the water rights and the Water Code, and impose 
the appropriate sanctions in accordance with existing laws, rules and 
regulations as well as future rules and regulations which the Department 
shall promulgate; 
(v) Adjudicate water use conflicts; and 
(vi) Perform such other related functions and activities which are necessary for 
the effective regulation of water-related services. 
(7) The Internal Audit Service shall regularly conduct a comprehensive audit of various 
Department activities and shall exercise the following functions: 
(i) Advise the Secretary on all matters relating to management control and 
operations audit; 
(ii) Conduct a performance audit of the management and operations of the 
Department, its activities, the performance of all units, and determine the 
degree of compliance of all operating units with established objectives, 
policies, standards, methods and procedures, government regulations and 
contractual obligations of the Department; 
(iii) Review and appraise systems and procedures, organizational structure, 
assets management practices, accounting and other records, and 
performance standards such as budgets and standard costs of the 
Department Proper, bureaus and regional offices; 
(iv) Analyze and evaluate management deficiencies and recommend realistic 
courses of action; and 


(v) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives. 
(8) The Public Affairs Service shall enhance relations with all stakeholders including 
the media, for the effective dissemination of information relating to water-related 
issues, including important announcements on policies and activities of the 
department that is of interest to the general public. It shall ensure that women, men, 
elderly, and people with disabilities shall be consulted, organized and take active part 
in all aspects of water resources development and management activities. It shall also 
lead the planning and organizing of special events, and shall exercise the following 
functions: 
(i) Public Awareness 
 
a) Advise the Secretary on matters pertaining to public affairs; 
b) Develop 
and 
supervise 
the 
implementation 
of 
comprehensible 
communications programs on relevant policies, programs and plans of the 
Department; 
c) Produce and supervise the dissemination of communication materials in 
line with the priorities of the Department and national government public 
information programs; 
d) Conduct public opinion and attitude surveys to identify the interests and 
concerns of the stakeholders of the Department; 
e) Establish policies on the presentation and publication of the content of the 
communication materials for dissemination to print and broadcast media; 
f) Establish and maintain linkages with the tri-media and a presence in social 
media; 
g) Coordinate the conduct of interviews and news conferences; 
h) Make public announcements on matters relating to the work and activities 
of the Department through the print and broadcast media, either through 
press releases or live interviews; 
i) Coordinate with various Department units, concerned government 
agencies, trimedia and other stakeholders on matters related to the above-
enumerated functions; and 
j) Coordinate with the appropriate national government agencies involved in 
public information affairs. 
 
(ii) Promote Participation 
a) Conduct public consultations and discussions; 


b) Develop and disseminate relevant and appropriate materials and programs 
for public information and education, as well as advocacy campaign; 
c) Conduct seminars and workshops involving the LGUs and the general 
public on current water issues and problems; and 
d) Conduct capability building seminars of various stakeholders to promote 
meaningful participation in the Department’s policy making, planning, 
development and implementation of various programs and projects. 
(iii) Special Events 
a) Coordinate the organization and promotion of special events and water 
exhibits; 
b) Act as the focal office for all water related events; and 
c) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives. 
(f) Bureaus. — The Department shall create bureaus which shall each be headed by a 
Bureau Director. ‘The Bureau Director shall be responsible for the efficient and effective 
discharge of the functions of the Bureau concerned. The Bureau Director shall be assisted 
by one (1) Assistant Director. 
(1) Bureau of Flood Control and Drainage shall plan and design flood control and 
drainage ~ structures and facilities in accordance with technical standards, 
guidelines and manuals. For this purpose, it shall have the following duties and 
responsibilities: 
(i) Formulate policy, strategies and programs on flood risk management in the 
context of integrated flood management (IFM) which integrates water, land, 
coastal zone and multihazard management. In integrating land use planning 
and water management, the Department shall harmonize and synthesize 
plans to enable the sharing of information between land-use planning and 
water management authorities. In this regard, a holistic approach shall be 
adopted by making the IFM a part of a wider risk or multi-hazard 
management system that includes earthquakes, landslides, fires, tsunami, 
and other calamities of the same gravity or nature; 
(ii) Integrate climate change and disaster risk reduction and management in 
policies and plans; 
(iii) Prepare master plans of flood management and drainage in river basins in 
coordination with the concerned water resources region and river basin 
organizations; 
(iv) Prepare master plans for urban drainage in cities and municipalities; 
(v) Prepare feasibility studies of recommended measures in the master plans; 
(vi) Plan and design structural measures for flood control and drainage; 


(vii) Implement and collaborate with concerned agencies on the formulation and 
adoption of non-structural measures for flood control and drainage: 
(viii) 
Patrol and investigate rivers, and monitor stream flows; 
(ix) Conduct 
post-disaster investigation 
and 
evaluation 
and 
damage 
assessment of flood infrastructures after extreme events; 
(x) Conduct research and development on water and sediment-related 
disasters; 
(xi) Develop design guidelines, criteria, and standards on flood control and 
drainage structures; 
(xii) )Provide technical assistance to other agencies, LGUs, and other 
stakeholders; 
(xiii) 
Advise the Secretary on declaring flood control areas and 
recommend guidelines for flood plain management plans in these areas; 
and 
(xiv) 
Perform such related activities which are necessary for the effective 
performance of its functions. 
(2) Bureau of Water Quality Management shall supervise and exercise control over 
all aspects of water quality management to ensure the sustainability of the 
country’s water resources and the protection of the environment. It should take into 
account proper and integrated treatment of freshwater and wastewater within the 
whole process. For this purpose, the Bureau shall exercise the following functions: 
(i) Establish water quality guidelines for freshwater and coastal or marine 
waters as basis for classifying water bodies in the country. Specifically, 
develop water quality indices or composite metrics to measure the quality 
status and health of natural water bodies in relation to ecological integrity 
and function; 
(ii) Establish effluent standards for point discharges to receiving bodies of 
water; 
(iii) )Establish internationally accepted procedures for sampling and analysis; 
(iv) )Prepare an integrated water quality management framework; 
(v) Prepare the ten-year water quality management plans for each water quality 
management area as part of the River Basin Master Plans and in support 
of the NWRMP; 
(vi) Classify groundwater sources and prepare a national groundwater 
vulnerability map; 
(vii) Classify or reclassify all water bodies according to their beneficial usages 
using the established water quality guidelines established; 
(viii) 
Issue permits, clearances, and similar instruments pursuant to the 
Clean Water Act of 2004; 


(ix) Collect the wastewater discharge fees for all permittees; 
(x) Monitor the compliance of water discharge permittees with the effluent 
standards; 
(xi) Regularly monitor the water quality of major water bodies in the country and 
analyze the data to identify possible sources of pollution; 
(xii) Issue notices of violations and/or cease and desist orders for those found 
in violation; 
(xiii) 
File the needed cases against violators with the Water Pollution 
Adjudication Board (WPAB); 
(xiv) 
Serve as secretariat of the WPAB; and 
(xv) 
Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the abovementioned 
objectives. 
(3) A Water Resources Regional Office (WRRO) shall be organized per water 
resources region and shall be responsible for implementing the mandates, powers 
and duties of the Department at the field level, except for policymaking which will 
be vested solely in the Department. The formulation of the master plan for the 
nearby river basins such as the Pasig-Marikina-Laguna Lake-Cavite, shall be the 
responsibility of the Department. Each WRRO shall perform the following duties 
and responsibilities: 
(i) Formulate or update and coordinate the river basin master plans for river 
basins within its jurisdictions ensuring consistency with the National Water 
Resources Management Framework Plan; 
(ii) Advocate and strongly support the creation and functioning of multi-
stakeholder river basin organizations (RBOs) and serve as the secretariat 
of the said RBOs; 
(iii) Undertake and evaluate the planning, design, and work supervision 
functions of the Department for the water infrastructures within the region; 
(iv) Ensure the implementation of laws, policies, programs, rules and 
regulations regarding the abovementioned infrastructure as well as public 
and private physical structures; 
(v) Provide technical assistance related to the water-related functions of other 
agencies within the region especially the local government; 
(vi) Coordinate 
with 
other 
departments, 
agencies, 
institutions 
and 
organizations, especially local government units within the region in the 
planning and implementation of the river basin master plans; 
(vii) Conduct consultations with the local communities, take appropriate 
measures to ensure that the services of the Department are responsive, 
and recommend such appropriate actions as may be necessary; and 


(viii) 
Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the abovementioned 
objectives. 
 
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate Water 
Resources Regional Office unless otherwise determined by the Secretary for reasons of 
supra- regional scope, magnitude and multi-functional coverage. 
 
Each Water Resources Regional Office shall be headed by a Water Resources 
Regional Director who shall be responsible for efficiently and effectively carrying out the 
duties and responsibilities of the Office. Towards this end, the Water Resources Regional 
Director shall exercise functional and administrative supervision over all units within the 
region and is authorized to commit resources and assign personnel to integrated regional 
water resources management, water supply and sanitation management, and flood 
control and flood risk management initiatives. The Water Resources Regional Director 
shall also perform such other related duties and responsibilities as may be assigned or 
delegated by the Secretary or as may be required by law. 
 
The Water Resources Regional Director shall be assisted by two (2) Assistant 
Water Resources Regional Office Directors who shall exercise supervision over (1) the 
planning, project design and evaluation function and (2) technical assistance to the River 
Basin Organizations within the water resources region. 
 
SEC. 14. Water Pollution Adjudication Board. - There is hereby created a Water 
Pollution Adjudication Board under the Office of the Secretary. The Board shall be 
composed of the Secretary as Chairperson, two (2) Undersecretaries as may be 
designated by the Secretary, the Director of Water Quality Management Bureau, and 
three (3) other representatives from other stakeholders to be designated by the Secretary 
as members. 
 
The Board shall assume the powers and functions of the National Pollution Control 
Commission with respect to the adjudication of water pollution cases under Republic Act 
No. 3931 entitled, .4n et Creating The National Water And Air Pollution Control 
Commission, Presidential Decree 984 entitled Providing For The Revision Of Republic 
Act No. 3931, Commonly Known as the Pollution Control Law, And For Other Purposes, 
particularly with respect to Section 6 letters e, f, g, j, k and Republic Act No. 9275. The 
Bureau of Water Quality Management shall serve as the Secretariat of the Board. These 
powers and functions may be delegated to the field officers of the Department in 
accordance with rules and regulations to be promulgated by the Board. 
 


CHAPTER III 
INTERDEPARTMENTAL RELATIONS  
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
 
SEC. 15. Interface and Institutional Arrangements with Other Agencies – 
(a) The Department of Health (DOH) shall continue to have primary authority and 
responsibility for setting and enforcing drinking water quality standards. The 
Department shall coordinate with the DOH in this aspect, and shall ensure 
consistency of standards and targets, as well as the compliance of permittees 
with mandated standards; 
(b) The Department of Environment and Natural Resources (DENR) shall continue 
to have primary authority and responsibility for protecting the environment and 
managing the country’s watersheds; 
(c) The Department of Energy (DOE) and the National Power Corporation (NPC) 
shall continue to have primary authority and responsibility for establishing and 
operating hydropower plants, but shall ensure that hydropower plant 
development plans are consistent with the National Water Development and 
Management Plan; 
(d) The Department shall coordinate with the DA to ensure agricultural 
development that reduces long-term pollution for surface water and 
groundwater, and agricultural and industrial economic development that 
employs water efficiency, water recycling or reuse, and the appropriate 
treatment of wastewater; 
(e) The Department shall coordinate with the National Disaster Risk Reduction 
Management Council (NDRRMC) to ensure that its plans and designs for flood 
control, flood risk management and drought risk management are aligned with 
the objectives and plans of the Department; 
(f) The Department shall coordinate with Climate Change Commission (CCC), 
Philippine 
Atmospheric, 
Geophysical 
and 
Astronomical 
Services 
Administration (PAGASA), and National Mapping and Resource Information 
Authority (NAMRIA) for scientific studies, integrated surveys, mapping, 
charting, and decision support systems. 
(g) The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources; 
(h) The Department shall coordinate with the Philippine Reclamation Authority and 
economic zone authorities on water resources development and water 
requirements within reclamation areas and economic zones, respectively; and 
(i) The Department shall coordinate with relevant government agencies, including 
local government units (1LGUs), with respect to development projects and shall 


ensure cross-cutting collaboration between and among all water subsectors 
and facilitate inter-agency subsector coordination, strategic development, 
planning, monitoring and provision of technical, institutional and financial 
capacity building support to their different stakeholders at the water subsector 
level. 
 
SEC. 16. National Water Sector Policy Board. – The National Water Sector Policy 
Board (NWSPB) shall be created and shall be headed by the Secretary of the Department 
of Water Resources with the Secretary of the National Economic and Development 
Authority as the Vice-Chairperson, and the Secretaries of the DOH, DILG, DOE, DA, 
Department of Social Welfare and Development; DPWH; Department of Budget and 
Management (DBM); Office of the President, and DENR, and National Commission on 
Indigenous Peoples as members. The Department shall provide personnel to serve as 
Secretariat to the Board. 
 
SEC. 17. Powers and Functions of the National Water Sector Policy Board - The 
NWSPB shall perform policymaking, coordination, integration, supervision, monitoring 
and evaluation functions, and shall have the following responsibilities: 
(a) Approve the NWRMP which shall serve as a principal guide to water 
management efforts in the country and shall be reviewed every five (5)-years 
interval, or as may be deemed necessary, in order to ensure its relevance to 
the times; 
(b) Provide overall policy direction and recommend policies on water resources 
requiring Presidential decision; 
(c) Advise the President on the status of water management and supply, 
recommend to the President the declaration of a state calamity in areas 
affected by water supply, and submit proposals to restore normalcy in the 
affected areas;  
(d) Ensure & multi-stakeholder participation in the development, updating, and 
sharing of information system as policy, planning and decision-making tools 
consistent with IWRM. 
 
SEC. 8. Transfer of Rights and Obligations. — The Department shall, by virtue of 
this Act, be subrogated to all the rights and assume all the obligations of the government 
agencies and units whose powers and functions have been subsumed, absorbed, 
transferred or attached to the Department-in accordance with the rules and regulations of 
the Commission on Audit, and the Civil Service Commission, and other applicable laws. 
The transfer of powers and functions as herein provided shall take effect within six (6) 
months of the effectivity of this Act. As such, all affected agencies, offices, units shall 
continue to function under their present mandates. 


 
CHAPTER IV 
WATER REGULATORY COMMISSION 
 
SEC. 19. Water Regulatory Commission. — There is hereby created and 
established as an independent, quasi-judicial regulatory body to be known as the Water 
Regulatory Commission, hereinafter referred to as the Commission, which shall be 
organized within one hundred twenty (120) days after the effectivity of this Act.  
 
The Commission shall be placed under the administrative supervision of the 
Department as an attached agency.  
 
The Commission shall have a Board of Commissioners, and shall be vested with 
powers and functions, as conferred and set forth hereunder.  
 
SEC. 20. The Regulatory Units. — The regulatory units of the Commission shall 
be composed of the central regulatory unit and the regional regulatory units. 
 
The economic regulatory units and functions of the MW NWRB, LWUA, SBMA, 
PEZA, and TIEZA are hereby transferred to the Commission, and shall collectively 
comprise its central regulatory unit for water supply and sanitation services that: (a) 
provide services to more than one province; and (b) are owned, operated and/or 
maintained by special economic zones and Metro Manila concessionaires.  
 
The regional regulatory units shall be established by the Commission in 
accordance with this Act and the rules, regulations, guidelines, and standards that the 
Commission shall issue.   
 
SEC. 21. Powers and Functions of the Commission. — The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether private 
or public, providing or intending to provide levels II & III water supply, including suppliers 
to subdivisions and e other service providers, sewerage, and/or septage treatment and 
disposal services for domestic, residential, institutional, industrial or commercial use. 
 
The Commission shall exercise the following powers and functions: 
(a) Issue and promulgate rules, regulations and guidelines as may be necessary 
to implement and enforce its powers and functions under this Act; 
(b) Promulgate 
and 
enforce 
just 
and 
reasonable 
technical 
standards, 
classifications and measurements of service; 
(c) Establish rules and regulations to monitor, avoid, and provide remedies for any 
market power abuse or anti-competitive or discriminatory act or behavior by or 
against any participant in the water supply and sanitation sector. Upon finding 


that a market participant has engaged in, or has fallen victim to such act or 
behavior, the Commission shall act to stop or redress the same. Such remedies 
may, without limitation, include the imposition of price controls, issuance of 
injunctions, requirement of divestment or disgorgement of excess profits, 
invalidation of contracts and imposition of fines and penalties pursuant to this 
Act. 
(d) Adopt and require that books, records, and accounts be kept and maintained 
in accordance with the prescribed uniform accounting system; 
(e) Fix and determine proper and adequate rates of depreciation of properties and 
equipment used in water supply and sanitation services; 
(f) Impose and collect annual levies determined as a percentage of gross revenue 
accruing in relation to the licensed activities, and reasonable fees and 
surcharges as may be necessary for achieving the purposes, powers and 
functions of the Commission; 
(g) Require the submission reports of finances and operations, verified under oaths 
by the owner or president and secretary of the board of the licensee; 
(h) Determine and require the monitoring and submission of such data, statistics 
and other information from the regulatory units and any or all licensees as may 
be necessary for the effective and efficient exercise of its duties, functions, 
powers and responsibilities. 
(i) Investigate, motu proprio or upon a written complaint, any matter concerning 
the operation of the service and issues on price manipulation and anti-
competitive behavior; 
(j) Impose penalties and fines 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; 
(k) Require any licensee to pay the actual expenses incurred by the Commission 
in any investigation if it shall be found that a licensee violated any provision of 
this Act or of the license, order, rule regulation or requirement issued by the 
Commission; 
(l) Advise, apprise and coordinate with other relevant agencies of the national or 
local government on any matter relating to water supply and sanitation 
services; 
(m)Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
(n) Appoint an interim or temporary management committee upon appeal and after 
due hearing, to ensure continuity of service in case a licensee fails to meet 
conditions of the license and the concerned Regulatory Unit fails or refuses to 
appoint an interim management committee as provided in the following section. 


(o) Appoint, hire and maintain adequate staff and personnel, advisers, or 
consultants, with suitable qualifications and experience, as necessary; 
(p) Exercise original and exclusive jurisdiction over all cases contesting rates, fees, 
fines and penalties imposed by the regulatory units in the exercise of their 
powers, functions and responsibilities, as provided under this Act, and over all 
cases involving disputes between and among participants or stakeholders in 
the water supply and sanitation services; and 
(q) Such other incidental powers and functions as may be necessary to attain the 
objectives of this Act. 
 
SEC. 22. Powers and Functions of the Regulatory Units. — The regulatory units 
of the Commission shall have the following powers and functions:  
(a) Issue licenses authorizing the operation of water supply and sanitation services 
in any specified area or areas within the Philippines.  
(b) lmpose fines, charges and other penalties upon any provider and/or its officers 
and stockholders who shall fail or refuse to register or obtain a license prior to 
operation or commencement of business, as provided hereunder.  
(c) Review, determine, fix, and approve, consistent with the rules, guidelines, 
procedures and methodologies which the Commission shall provide, proposed 
water and sewerage and septage management tariffs, rates and charges that 
licensees may impose upon their consumers; 
(d) Appraise and value property and equipment used by licensees in providing 
water supply and sanitation services. 
(e) Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities;  
(f) Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu proprio price manipulation and anti-
competitive behavior; 
(g) Investigate accidents directly or indirectly arising from or connected with the 
maintenance or operation of the service, and make such order or 
recommendation as the public interest may warrant;  
(h) Require the review and/or approval of contracts or agreements that may impact 
on the tariff and rates of service provision entered into by service providers 
upon petition or motu proprio where in its determination public interest so 
dictates; 
(i) Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment 
reports; 
(j) Impose and collect annual levies determined as a percentage of gross revenue 
accruing in relation to the licensed activities, and reasonable fees and 


surcharges as may be necessary for achieving the purposes, powers, and 
functions of the regulator; 
(k) Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof, as may 
be necessary or required by the Commission; 
(l) Amend, modify, suspend, or revoke any license issued by them, after due 
notice and hearing, on any of the following grounds:  
(1) when the facts and circumstances on the strength of which the license was 
issued have been materially misrepresented or have materially changed; 
(2) where the licensee has failed to meet or comply with terms, conditions, and 
performance targets, including but not limited to service expansion, that 
may have been set in the license; 
(3) where the licensee is found to be manifestly inefficient in the operation of or 
provision of water supply and sanitation services in its area; or 
(4) when the licensee thereof has violated or wilfully refused to comply with any 
order, rule or regulation of the Commission or any provision of this Act; 
(m)Appoint an interim management committee to ensure continuity of service in 
case a licensee fails to meet the conditions of the license; and 
(n) Submit performance plans and reports as required by the Commission. 
 
SEC. 23. Composition of the Water Regulatory Commission. — 
a) The Commission shall be a collegial body composed of five (5) full-time 
members consisting of a Chairperson and four (4) members, who shall all be 
appointed by the President of the Philippines. All members of the Commission 
must be citizens and residents of the Philippines, at least thirty five (35) years 
of age, and of good moral character, of recognized integrity and competence 
in the field of law, business, commerce, finance, accounting or public 
administration, water or utility economics, management, physical or 
engineering services, hydrology and other related services, with at least three 
(3) years of actual and distinguished experience in their respective fields of 
expertise: Provided, That out of the four (4) members of the Commission, at 
least one (1) shall be a member of the Philippine Bar with at least ten (10) years 
of experience in the active practice of law, and at least one (1) shall be a 
certified public accountant with at least ten (10) years of experience in active 
practice. 
b) The term of office of each member of the Commission shall be seven (7) years: 
Provided, That among the members first appointed, the Chairperson shall 
serve for a period of seven (7) years, two (2) members shall serve for five (5) 
years and the other two (2) members shall serve for three (3) years: Provided 
further, That any member whose term has expired as specified herein shall 


serve as such until a successor shall have been appointed and qualified: 
Provided furthermore, That any appointment to fill a vacancy in the Commission 
arising from death, removal, retirement or resignation shall be made only for 
the unexpired term: Provided, finally, That in no case shall any member serve 
for more than seven (7) years in the Commission. 
c) The Commission shall meet as often as may be necessary on such day or days 
as the Chairperson may fix. The presence of at least three (3) members of the 
Commission shall constitute a quorum, which shall be necessary for the 
transaction of any business. The affirmative vote of majority of the members of 
the Commission where a quorum is present shall be necessary for the adoption 
of any order, resolution, decisions, or other act of the Commission in the 
exercise of its quasi-judicial functions: Provided, That in promulgating rules, 
regulations, guidelines and in exercising its quasi-legislative functions, an 
affirmative vote of three (3) members shall be required. 
d) The Chairperson of the Commission shall exercise general executive control 
and supervision over the Commission and its members, staff and personnel, 
agents and representatives. Within three (3) months from the creation of the 
Commission and the appointment of all Members of the Commission, the 
Chairperson shall determine and establish the organizational structure and 
plantilla positions necessary to carry out the powers and functions of the 
Commission, including those of the central and provincial regulatory units 
subject to the review and approval of the DBM. 
The plantilla positions of the Commission shall be filled by regular appointments 
in accordance with Civil Service laws, rules, and regulations. Members of the 
Commission shall enjoy security of tenure and shall not be suspended or 
removed from office except for just cause as specified by law. 
e) The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or common 
law, shall be prohibited from holding any interest whatsoever, either as investor, 
stockholder, officer or director, in any company or entity engaged in provision 
of water supply and distribution, septage management and sewerage services 
and must, therefore, divest through sale or legal disposition of any and all 
interests in the water sector upon assumption to office. 
 
SEC. 24. Secretariat of the Commission. — The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
including the following: 
a) Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions; 


b) Coordinate with Regulatory Units to ensure proper implementation of the rules, 
regulations and guidelines promulgated by the Commission; 
c) Monitor and assess activities of the Regulatory Units vis-a-vis their respective 
annual performance plans and targets; 
d) Maintain a database on the water supply and sanitation subsector; and 
e) Coordinate with other relevant agencies of the national or local government on 
any matter relating to water supply and sanitation. 
 
SEC. 25. Executive Director. — The Commission shall appoint an Executive 
Director who shall head the Commission Secretariat, keep and maintain the official 
records of the Commission, render a report on the proceedings of the Commission, and 
administer oaths in all matters falling within the jurisdiction of the Commission.  
 
The Executive Director shall be responsible for the effective implementation of the 
policies, plans, programs, rules, regulations and directives of the Commission; coordinate 
and supervise the activities of the different operating units under the Commission; and 
perform such functions as may be assigned by the Chairperson and/or other members of 
the Commission.  
 
SEC. 26. Compensation and Other Emoluments. — The compensation of the 
members of the Commission and its staff shall conform to provisions of Republic Act No. 
6758 as amended, otherwise known as the Compensation and Position Classification Act 
of 1989. 
 
CHAPTER V 
REGISTRATION AND LICENSING 
 
SEC. 27. Registration and Licensing of All Water Supply and Sanitation Services. 
— All water supply and sanitation service providers, including bulk water suppliers and 
those providing services to subdivisions and other service providers, shall register with 
the Commission and, subject to such rules, guidelines, procedures and other issuances 
of the Commission, obtain a license to operate from the appropriate regulatory units.  
 
The Commission shall ensure that the grant and revocation of licenses are carried 
out fairly, transparently, and without discrimination. Issuances of the Commission shall 
specify, among others, the qualifications, requirements, and procedure for the grant and 
revocation of licenses including the standards and performance targets that shall 
continuously be complied with to keep the licenses valid. 


 
Unless otherwise provided in this Act or by the Commission, no public water supply 
and sanitation service provider shall commence or conduct the business of providing-
water supply and sanitation services without first obtaining a license. 
 
Concession agreements and other contracts for water supply provision and water 
sanitation and treatment services currently existing shall remain valid and enforceable 
unless otherwise terminated, after due notice and hearing for reasons provided in the 
existing terms and conditions under the concession or service agreement or contract, or 
when invalidated by the Commission, after due notice and hearing, where national 
security, national emergency or public interest so dictates. 
 
SEC 28. Conditions of License. — The Commission or the concerned regulatory 
unit, may impose such conditions on the licensee as it may deem necessary such as: 
a) Tariffs, rates and charges that may be imposed from its customers or 
consumers. 
b) Term fixing the duration of the privilege. 
c) Grounds for modification, suspension or cancellation of the License. 
d) Minimum technical performance and service level standards. 
e) Expansion targets and service level improvements over time. 
f) Restrictions or conditions for transferability of the business or controlling 
interest in the business. 
g) Reportorial requirements and obligations of the grantee. 
h) Submission to annual performance audit by the Commission or its duly 
authorized representative(s).  
 
The Commission shall specify the requirements and procedure for existing holders 
of A Certificate of Public Convenience (CPC), Certificates—of Public Convenience and 
Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by 
LWUA, to convert their existing certificates into licenses to operate in accordance with 
Sec. 27 herein. 
 
All existing providers of water supply and sanitation services without a legal and 
valid Certificate of Public Convenience, Certificate of Public Convenience and Necessity, 
or Certificate of Conformance shall register with the Commission and apply for a license 
within six (6) months from the effectivity of this Act. 
 
SEC. 29. Rights and Duties of Licensees. — 
(a) Any person granted a license under this Act shall have the obligation to ensure 
that licensed activities are conducted to further public interest and, in particular: 
(1) Foster the maintenance and development of efficient, coordinated, and 
viable operation of their licensed activities; 


(2) Ensure that their water supply and sanitation services are provided in a 
diligent, conscientious and workman like manner, in accordance with 
applicable laws rules and regulations issued by the Commission and the 
generally accepted standards and practices of the water supply and 
sanitation industry; and 
(3) Comply with drinking water quality requirements and standards that may be 
established by the Commission. 
(b) Any person granted a license under this Act shall, to the extent allowed by law 
and specified in the license, has the right to acquire or lease land, lay or repair 
water or sanitation main lines and other relevant facilities in public ways to fulfill 
the terms and conditions under the license. 
(c) Subject to any condition or limitation laid down in the license, a licensee may 
discontinue water supply and sanitation services to a customer if such 
customer defaults in the payment of fees due to the licensee for the water 
supplied or sanitation services provided, or for acts of pilferage pursuant to 
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the 
Water Crisis Act of 1995. 
(d) Any license issued under this Act shall contain provisions designed to ensure 
that licensees: 
(1) Publish the Tariff and other charges approved by and the terms and 
conditions imposed by the Commission for the provision of water supply and 
sanitation services. 
(2) Prepare, within three (3) months from the issuance of a license, in 
consultation with its customers, a Customer Service Code specifying the 
manner and procedure for: (a) metering, billing, and collection of the 
licensee’s approved tariff and other charges, (b) disconnection or 
suspension of service in case of non-payment of tariffs and/or other 
charges, or acts of pilferage, and (c) recommendation and recovery of 
arrears in tariffs and other charges; 
(3) Maintain financial accounts in accordance with the manner and procedure 
specified in the license and as may be required by the Commission; and 
(4) Maintain and upon request by anyone during regular office hours, promptly 
make available for scrutiny and inspection such data, statistics and other 
information, as may be required by the Commission. 
 
SEC. 30. Setting Tariffs, Rates, and Other Charges. — Regulatory units shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure 
economic viability and a fair return on investments. 


 
Tariffs, rates and charges shall be based on and consistent with a rate-setting 
methodology that the Commission shall, after due consultation, define and publish, taking 
into account the following, among others: 
(a) Reasonable and prudent capital and recurrent costs of providing the service 
including a reasonable rate of return on capital; 
(b) Efficiency of the service; 
(c) Incentives for enhancement of efficiency; 
(d) Willingness to pay of the customers/consumers; 
(e) Equity considerations; and 
(f) Administrative simplicity. 
 
Tariffs, rates, and charges set by the regulatory units shall be presumed valid and 
reasonable unless a protest or contest is filed with the Commission. 
 
SEC.31. Direct Access. - Fifty-one (51) percent of the registered water consumers 
in a municipality, city or province may petition for direct access to water from any water 
service provider subject to concurrence by the service provider and approval by the 
Commission. The Commission shall promulgate rules and procedures for this mode of 
service.  
 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of Systems. 
- The Commission shall promote innovative schemes such as the consolidation or 
integration of water supply and sanitation services, or providers in the same service area, 
where it shall result in improved efficiency, service expansion and lower-costs.  
 
To this end, the Commission shall establish and issue such rules and guidelines 
as may be necessary to (a) create incentives to encourage efficiency and service 
expansion; (b) establish the standards and targets that service providers are required to 
meet; and (c) define the fines and penalties that shall be imposed for failure to meet such 
standards and targets. 
 
 
CHAPTER VI 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
 
SEC. 33. Proceedings Before the Commission. - For the purpose of any 
investigation, inquiry or proceeding, the Commission shall: 
(a) Issue subpoena duces tecum and subpoena ad testificandum; 
(b) Appoint hearing officers to hear and receive evidence on behalf of the 
Commission; 


(c) Cite any person or party for contempt for refusal to appear, testify, or comply 
with an order of the Commission on any matter that is the subject of 
investigation, inquiry or proceeding before the Commission. 
 
SEC. 34. Orders and Decisions of the Commission. — Any order, resolution, or 
decisions of the Commission shall be promulgated promptly, expeditiously, reasonably, 
and in writing, and shall state clearly and distinctly the facts and law on which it is based.  
 
The Commission shall publish and make available for public inspection, all 
decisions and final orders in the adjudication of contested cases or applications.  
 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. —  
(a) The orders, rulings, and decisions of the Commission are final and executory 
unless appealed to the Court of Appeals within fifteen (15) days from receipt of 
notice of such order, ruling or decision: Provided, That orders, rulings, and 
decisions of the Commission approving tariffs, shall be immediately executory 
and may be suspended only upon appeal and filing of a bond, in an amount to 
be fixed by the Commission, to answer for damages occasioned by the 
suspension or stay of execution of such orders, rulings, and decisions. 
(b) No injunction may be issued by any court or administrative agency to restrain 
any proceeding before, or the implementation or execution of any order, ruling, 
or decision of the Commission, except on the basis of a question of law brought 
before the Supreme Court on certiorari. 
(c) Any act or decision of the Commission shall not be invalidated merely because 
of a defect or irregularity in, or in connection with, the appointment or vacancy 
in the Office of the Chairperson or any other member of the Commission. 
 
CHAPTER VII 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
 
SEC. 36. Interface with Other Sector Regulators. — 
(a) The DENR shall continue to exercise primary jurisdiction over programs aimed 
at -protecting the environment and the quality of water sources from waste and 
pollution, and shall promulgate rules, regulations, and standards in this regard. 
The Department of Health (DOH) shall continue to exercise primary jurisdiction 
over the determination and enforcement of standards for quality drinking water 
and sanitation. 
(b) The Commission shall coordinate with the: 


(1) DOH to ensure that the standards and targets for quality drinking water and 
sanitation are consistently complied with; 
(2) LGUs for development projects relating to water supply and sanitation; and 
(3) Department of Public Works and Highways for flood control and harnessing 
and impounding of water. 
 
SEC. 37. Transfer of Rights and Obligations. — The Commission shall, by virtue 
of this Act, be subrogated to all the rights, and assume all the obligations, of the Water 
Utilities Division of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory 
units of all special economic zones, and all other government agencies and units whose 
powers and functions have been transferred to the Commission. 
 
The transfer of powers and functions to the Department of the concerned agencies 
as herein provided for, shall be deemed completed within six (6) months after the 
effectivity of this Act. The transfer of powers and functions shall include all applicable 
funds, personnel, records, property and equipment, as may be necessary. The same shall 
apply to agencies which have been attached to the Department by virtue of this Act. 
 
All agencies transferred, subsumed and attached to the Department, shall continue 
to function under their present mandates until the six-month transition period mandated 
under this Act shall have lapsed. The heads of the affected agencies shall continue to 
serve until replaced. 
 
All rights and obligations of the affected agencies are hereby transferred to and 
assumed by the Commission, and shall be acted upon in accordance with the rules and 
regulations of the Commission on Audit and other pertinent laws, rules, and regulations. 
 
SEC. 38. Absorption or Separation from Service of Employees of the Subrogated 
Agencies. — The current employees of the Water Utilities Division of the NWRB, the 
regulatory offices of MWSS and LWUA, the regulatory units of all special economic zones, 
and all other government agencies and units whose powers and functions have been 
transferred to the Commission shall enjoy security of tenure, and shall be absorbed by 
the Department, in accordance with their staffing pattern and the selection process as 
prescribed under Republic Act No. 6656 or the Government Reorganization Law. 
 
Employees opting to be separated from the service as a consequence of the 
consolidation, and reconstitution under the provisions of this Act shall, within one (1) 
month from their separation or phase out from the service, receive separation benefits in 
accordance with existing laws, and those who are qualified to retire shall be allowed to 
retire and be entitled to all benefits under existing retirement laws. 
 
SEC. 39. Water Trust Fund. — There is hereby created a Water Trust Fund in the 
Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees, 


registration fees, supervision and regulation enforcement fees, filing fees, testing fees, 
and other service income from the use of water resources shall be remitted to the Water 
Trust Fund. The trust fund shall be accounted separately from the government’s general 
revenues and shall be automatically appropriated to the Department. Proceeds from the 
trust fund shall be utilized for water development, water sanitation and waste water 
treatment and management, and water sustainability programs and projects authorized 
under this Act: Provided, That a maximum of ten percent (10%) of the total income 
generated from raw water extraction shall be given as share of the concerned local 
government unit or indigenous peoples (IP) community who own the specific areas or 
land where the raw water was sourced. 
 
CHAPTER VIII 
FINAL PROVISIONS. 
 
Sec. 40. Applicability of Ease of Doing Business Law. - The prescribed processing 
time provided under Section 9.b of Republic Act No. 11032, otherwise known as the Ease 
of Doing Business and Efficient Government Service Delivery Act of 2018, shall be 
applicable of all agencies and LGUs covered under this Act particularly on accessing 
government services. 
 
Sec. 41. Transitory Provisions. - Performance audit of all water-related agencies 
and institutions, including LWUA and water districts, MW MWSS-RO and its 
concessionaires, LGU-run utilities, Tourism Infrastructure and Enterprise Zone Authority, 
Philippine Economic Zone Authority, Bases Conversion and Development Authority, 
Subic Bay Metropolitan Authority, DILG, and NIA, shall be conducted by the Department. 
 
SEC. 42. Appropriations — The amount necessary to cover the initial 
implementation of this Act shall be charged against the currents year’s appropriations of 
the agencies and offices transferred and subsumed by the Department and the 
Commission in the General Appropriations Act. Thereafter, such sums as may be 
necessary for the continued implementation of the Act shall be included in the annual 
GAA. 
 
SEC. 43. Implementing Rules and Regulations. — Within one hundred eighty (180) 
days from the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in 
consultation with concerned government agencies, the Presidential Legislative Liaison 
Office shall promulgate rules and regulations for the effective implementation of this Act. 


 
SEC. 44. Separability Clause. - If any reason, any portion or provision of this Act 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby 
shall continue to be in full force and effect. 
 
SEC. 45. Repealing Clause. (a) The following provisions are hereby repealed: 
1) Section 3 (h) and Section 12 on the provision with respect to fixing of water 
rates and sanitation service fees, Section 3 (n) on the provision with respect to 
regulation of waterworks and deep wells, and Section 3 (p) on the provision 
with respect to regulation of waterworks and sanitation systems in privately 
owned subdivisions of Republic Act 6234 entitled, An Act Creating The 
Metropolitan Waterworks And Sewerage System And Dissolving The National 
Waterworks And Sewerage Authority, And For Other Purposes, as amended. 
2) Title III on Local Water Utilities Administration Law of Presidential Decree No. 
198 otherwise known as the Provincial Water Utilities Act of 1973, as amended 
by Letter of Instruction No. 700 - Providing Measures To Control And Regulate 
Increase In Water Rates, Letter of Instruction No. 744 - Relative To Reliable 
Water Supply At Reasonable Rates In The Countryside on the, Executive Order 
No. 124, 30 January 1987 - Reorganization Act of the Ministry of Public Works 
and Highways, Executive Order No. 123, 30 January 1987 - Reorganization 
Act of Ministry of Social Services and Development. 
3) Republic Act No. 3601 as amended by Presidential Decree No. 552 and 
Presidential Decree No. 1702 pertaining to the creation of the National Irrigation 
Administration; 
4) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order 
No. 124, dated 30 January 1987, Reorganizing the Department of Public Works 
and Highways, Redefining Its Powers and Functions, and For Other Purposes 
on renaming and reorganizing the National Water Resources Council into the 
National Water Resources Board. 
(b) The following provisions are hereby amended accordingly: 
1) Section 3 paragraph 3 Commonwealth Act No. 146, as amended, otherwise 
known as the Public Service Act pertaining to all cases involving the fixing of 
rates; 
2) Section 154, Article V, Chapter I, Title One, Book II of Republic Act No. 7160, 
as amended, otherwise known as the “Local Government Code of 1991”, and 
its implementing rules and regulations on the power of the local government 
units to fix the rates of water utilities owned, operated and maintained by them 
within their jurisdiction is hereby repealed or modified accordingly. 
3) Section 13 (b) on the regulation of enterprises within the Economic Zone under 
Republic Act No. 7916 as amended, otherwise known as “The Special 
Economic Zone Act of 19957, 


4) Section 69 of Republic Act No. 9593 otherwise known as “The Tourism Act of 
2009” and its implementing rules and regulations which mandate the Tourism 
Infrastructure and Enterprise Zone Authority to grant franchises, supervise the 
operation of public utilities, and register, monitor and regulate enterprises within 
Tourism Enterprise Zones, are hereby repealed or modified accordingly; 
5) Sections 7 and 8 on the adjudication of water pollution cases under Republic 
Act No. 3931 entitled, An Act Creating The National Water And Air Pollution 
Control Commission, particularly with respect to Section 6 letters e, f, g, j, k 
Presidential Decree 984 entitled, Providing for the Revision of Republic Act No. 
3931, Commonly Known as the Pollution Control Law, and For Other Purposes; 
6) Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the 
“Philippine Clean Water Act of 2004”, 
7) Articles 3(d) and 79 of Presidential Decree No. 1067, otherwise known as The 
Water Code of the Philippines; 
8) Sections 9, 10, 11, 12 and 13, Chapter II of Presidential Decree No. 856, 
otherwise known as the “Code on Sanitation of the Philippines”; and 
9) Section 3.2 (b) of Executive Order No. 149 Series of 1993 transferring the 
Laguna Lake Development Authority from the Office of the President to the 
Department of Environment and Natural Resources. 
 
All other laws, presidential decrees, executive orders, presidential proclamations, 
rules and regulations, or parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed or amended accordingly. 
 
SEC. 46. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
Approved,