TWENTIETH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
EXPLANATORY NOTE 
In the water sector, the most urgent need is probably the upgrading of the water utilities 
outside Metro Manila. While people in the provinces now have more and better roads, 
electricity, telephones, cable TV, etc., very few have piped drinking water and sewerage 
systems.  
The main responsibility for this task lies with the Local Water Utilities Administration 
(LWUA).  The reality, however, is that the capital requirements of the water sector are so large 
that the LWUA is unable to fulfill its mandate.  LWUA depends on government funds, which 
are limited, as well as ODA funds which are likewise limited. 
An alternative source of financing for water utilities is the private sector. In the case of 
the MWSS, the government was able to pass on all the financing burden to the private sector, 
together with huge responsibilities for expanding and improving the system, while lowering 
tariffs and significantly increasing government tax revenues through VAT and income tax. 
The main difficulty in privatizing water utilities in a similar way as the case of MWSS 
(i.e., through a concession) is the question of financial regulation. The rules are presently 
vague as to whether jurisdiction lies with the LWUA, NWRB or even LGUs.  Also, it requires a 
different set of skills to properly regulate privatized water systems and we need to develop this 
in order to entice foreign investments.  
The main objectives of the proposed bill are to ensure universal access to water supply 
and sanitation services, and to encourage responsible private sector participation, fostering 
and prioritizing infrastructure and public works that adopt innovative solutions and international 
best practices to address the challenges of climate change. The bill also creates a Department 
of Water Resources to 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, 
sustainability and protection of water resources in the Philippines except fisheries and 
aquaculture. 
In view of the foregoing, immediate approval of this measure is earnestly requested. 
RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 
July 7, 2025
3:45 pm
1499


TWENTIETH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
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 FUNCTIONS, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “National Water Resources 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 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 for
their own consumption, such as industrial companies, or for retail distribution to
consumers such as water service providers or real estate developers managing their
own distribution network.
(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 for physiological as well as recreational and related needs of human beings.
(c) Flood Control refers to methods, acts, and protocols to be observed in order to prevent
and reduce the detrimental and catastrophic effects of flood waters which include
sediment-laden or turbid flows, and hyper-concentrated flows or debris flows.
1499


(d) Flood Risk Management (FRM) refers to acts of defining and determining the 
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of 
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: integrating land-use planning 
and coastal zone management into water management; adopting a holistic approach 
so that FRM is part of wider risk or multi-hazard management of earthquakes, 
landslides, droughts, and storm surges; managing risk and uncertainty as a whole so 
it not only mitigates hydrological uncertainties but also social, economic and political 
uncertainties on account of human behavior and the cultural dimensions of FRM. 
(e) Gender Equality refers to the principle asserting the equality of men and women and 
their right to enjoy equal conditions realizing their full human potentials to contribute to 
and benefit from the results of development, and with the State recognizing that all 
human beings are free and equal in dignity and rights. 
(f) Infrastructure and public works refer only to wholly or primarily water-related projects 
and does not include projects that do not fall within the purview of the objectives, power 
and duties of the Department of Water Resources created under this Act. 
(g) Integrated Water Resource Management (IWRM) refers to a systematic, collaborative, 
and multi-stakeholder process which promotes the coordinated development and 
management of water, land, and related resources within geophysical boundaries in 
order to maximize the resultant economic and social welfare in an equitable manner, 
and without compromising the sustainability of vital ecosystems.  
(h) License refers to the Water Supply or Sanitation Services Operating License that the 
Water Regulatory Commission is authorized to grant and issue to service providers.  
(i) Licensee refers to a service provider to whom a license is granted or issued by the 
Water Regulatory Commission. 
(j) Missionary Water Services refer to water supply or services to areas that have no 
existing safe water supply and services due to geographic limitation or absence of 
economic and market viability. 
(k) National Water Resources Management Plan (NWRMP) refers to a policy document 
that contains a framework to guide the development and management of all the water 
resources in the Philippines, the general strategies and work to be pursued to ensure 
the sustainability of the resource towards water security, and top-level direction on the 
utilization of existing water resources in line with national development plans, policies, 
and programs in accordance with the IWRM framework. The NWRMP shall also 
include a water infrastructure development program 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. 
(l) Net Waste Load refers to the difference of the initial waste load of the abstracted water 
and the waste load of the final effluent discharge of an industry. 
(m) 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.  
(n) River Basin Organization (RBO) refers to a multi-stakeholder organizations which plan, 
coordinate, and monitor activities within a river basin cluster. 
(o) Sanitation refers to the provision of facilities and services for the safe management of 
human excreta and wastewater, from collection to containment, and storage and 
treatment onsite or conveyance, treatment and eventual safe end use or disposal, and 
includes the safe management of solid waste and animal waste. 
(p) Sediment management refers to control of sediment erosion and deposition in rivers, 
reservoirs, and coastal zones through non-structural and structural measures and 
control works.  
(q) Sustainable Development Goals (SDGs) also known 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 Member States of the United Nations 
in 2015.  
(r) Septage is the liquid and solid material pumped from a septic tank, cesspool, or other 
primary treatment source.  
(s) Septage Management refers to the provision of proper collection, treatment, and 
disposal of septage. 
(t)  Service Area refers to the area covered by the water distribution system, sewerage or 
septage management services.  
(u) 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.   
(v) Sewage refers to water-borne human or animal wastes, excluding oil or oil waste, 
removed from residences, buildings, institutions, and industrial and commercial 
establishments together with such groundwater, surface water and storm water as may 
be present including such waste from vessels, offshore structures, other receptacles 
intended to receive or retain waste or other places or the combination thereof.   
(w) Sewerage refers to any system or network of pipelines, ditches, channels or conduits 
including pumping stations, lift stations and force mains, service connections including 
other infrastructure, devices, or appliances appurtenant thereto, which include the 
collection, transport, pumping and treatment of sewage to a point of disposal. 
(x) Sewers refer to pipes or such other works or structures which are built and constructed 
to carry, transport, and dispose sewage. 
(y) Social inclusion refers to the process of improving the terms for marginalized and 
disadvantaged individuals, indigenous peoples, and similar groups to take part in 
society.  
(z) Tariffs refer to amounts which may be charged by licensees for their water supply and 
sanitation services based on principles, standards, and guidelines established by the 
Water Regulatory Commission;. 
(aa) 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 of water as it flows from source, through use, 
to disposal; 
(4) Shift the timing of use from peak to off-peak periods; and 
(5) Increase the ability of the water system to continue to serve society during times 
when water is in short supply. 
(bb) Water Districts refer to government-owned and controlled corporations, organized 
under Presidential Decree (PD) No. 198, as amended, or the Local Water Utilities 
Administration Law, 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. 
(cc) 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. 
(dd) Water Resource refers to water under the ground or groundwater, water above the 
ground such as surface water, run-offs, floods, storm water 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. 
(ee) Water resource allocation is the process of sharing the limited water resources 
between competing users. This consists of (i) determining water availability, and (ii) 


determining how the water should be shared among competing users. For the 
purposes of this Act, resource allocation shall also mean water resources allocation. 
(ff) Water Resources Regions refer to the contiguous clusters of river basins which are 
grouped together according to the hydrological boundaries, physiographic features, 
and homogeneity in climate, whether or not they straddle different local government 
units, for administrative purposes under the Department of Water Resources. 
(gg) Water Service Provider (WSP) refers to the water district, any Local Government Unit 
(LGU)-run water utility, Barangay Waterworks and Sanitation Association, Rural 
Waterworks Sanitation Association, cooperatives engaged in water service provision, 
or private sector entity that provides water supply services to any given area.  
(hh) Water supply service refers to any activity comprising Levels I, II and III water supply 
including bulk suppliers, suppliers to subdivisions, and other water service providers 
(WSPs). 
 
CHAPTER II 
THE DEPARTMENT OF WATER 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, and water utilization 
aspects of fisheries or aquaculture. 
The Department shall also be the primary agency responsible for the planning and 
policy formulation towards the attainment of universal access to safe, adequate, affordable, 
and sustainable water supply, and improved sanitation services for all Filipinos.  
The Department shall be the primary national agency to enforce PD 1067, otherwise 
known as The Water Code of the Philippines. 
In the implementation of Republic Act (RA) No. 9275, otherwise known as the 
Philippine Clean Water Act of 2004, the Department shall be responsible for preparing, 
formulating and implementing a five-year plan of action for a national and  a regional septage 
management plan, which shall contain measures for the construction of wastewater treatment 
facilities and provision, installation, operation and maintenance and, where practicable, the 
integration of sewerage, septage management, storm water management and other sanitation 
facilities.    Compliance with the mandate to implement septage management services and 
systems by any WSP pursuant to the Philippine Clean Water Act of 2004 shall be reckoned 
within five (5) years from the date of promulgation or publication of the septage management 
plan formulated by the Department. 
 
SEC. 6. Guiding Principles. –In the pursuit of its mandate, the Department shall be guided by 
the following key principles: 
(a) The concept of good water governance for water security and sufficiency shall be 
adopted across all levels of governance by stakeholders such as the national 
government, local government units (LGUs), non-government organizations, private 
organizations, individuals, global societal actors, and in various sectors such as water 
supply, irrigation, fisheries, hydropower, navigation, ecosystem services, 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-based decision 
support systems, 
proper 
information, 
education, 
communication 
programs, 
assessment and allocation tools, or regulatory functions. It shall observe the mutual 
accountability mechanism among stakeholders at the national, regional, and global 
levels reinforcing multi-stakeholder decision-making following a framework with 
specific, measurable, attainable, relevant, and timely actions; 
(d) Each river basin has its unique characteristics relating to the physical, socio cultural, 
and other aspects, and water management shall be performed at river-basin level, 
involving all the stakeholders at 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 
modeling and warning systems that are essential for an effective, efficient, and 
sustainable water resources management system. 
(f) The State shall prioritize the development of surface water to ensure adequate and 
reliable supply of water: Provided, That the development of water resources shall 
include strategies for the mitigation of water-related hazards and climate change 
adaptation. 
(g) Water resources shall be fairly and sustainably managed, and water services shall be 
provided where they are intended and most needed.  
(h) The proper operation and maintenance of waterworks systems resulting in the 
uninterrupted and adequate supply and distribution of potable water for domestic and 
other purposes, and the proper operation and maintenance of sewerage systems 
which are essential services to public health and safety, are to be ensured at all times; 
and  
(i) The State recognizes the role of the private sector and mobilization of private 
resources in the development of waterworks systems through concession agreements, 
joint venture agreements, bulk water supply agreements, management and service 
agreements and other contracts for water supply provision, water sanitation and 
treatment services, and the development, operation and maintenance of water supply 
and septage management systems. The State shall encourage the private sector to 
provide the needed investments for programs and projects to ensure adequate water 
supply and promote water security. 
 
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 conservation become a way of life, that 
the recycling and reuse of water and treated wastewater are widely practiced, that 
water is properly priced to encourage efficient use and conservation, and that 
rainwater, flood waters, and run-offs are captured or harvested, stored and treated for 
future use; 
(b) Prioritize and seek the immediate attainment of universal access to safe, adequate, 
affordable and sustainable water supply and improved sanitation services for all 
Filipinos, either through public programs and projects or public-private partnership or 
other mechanisms, 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: Provided, That the Department shall 
pursue universal access to clean water by 2030; 


(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 users; 
(d) Ensure that integrated water resources management is strongly coordinated with land 
use and coastal and multi-hazard planning and management; 
(e) Develop sustainably, and manage water sources and water resources toward water 
security, taking into consideration water, land, and related resources aimed at 
increasing water dependability for different uses, optimizing economic benefits and 
social welfare without compromising the sustainability of vital environmental systems; 
(f) Strengthen and coordinate policy making and planning towards ensuring the 
availability of water for food security and energy security, as well as towards the 
protection of communities and environments against flood and other water induced 
hazards including sediment hazards;  
(g) Ensure that the strategy for water resources development and conservation is 
participatory, and that planners, policymakers, and other stakeholders, including water 
users, community members, indigenous and marginalized peoples, are involved at all 
levels; 
(h) Develop a standardized pricing framework for water use, septage and sewerage 
services that accounts for environmental externalities and pricing considerations such 
as reasonable rate of return; rate adjustment mechanisms for consumer price indices 
and currency fluctuations; and other factors relevant to the operation of waterworks 
systems and infrastructure;  
(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; and 
(j) Prioritize and provide technical and financial assistance to fourth, fifth and sixth class 
municipalities in the Philippines in the development of water resources and waterworks 
systems and provision of water and sanitation services. 
 
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 for water management policymaking and planning in the country 
and coordinate the implementation, promotion, revision and enhancement of IWRM 
plans;  
(b) Formulate policies, strategies, and targets in coordination with other relevant entities 
to meet the goals and objectives for water supply and sanitation, water quality, 
irrigation, hydropower, flood control, storm water utilization, and urban drainage. Such 
policies shall, among other guidelines, integrate the issues of water and sanitation, 
food security, energy, environment and flood control, and climate change; 
(c) Formulate and develop policies to promote universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sanitation services for all 
Filipinos; 
(d) Prepare the NWRMP in consultation with other agencies and stakeholders, following 
the IWRM framework and integrating therein a national land use plan, submit the 
NWRMP                   to the National Economic and Development Authority (NEDA) 
Board for approval and eventual adoption, and regularly update, every five years or as 
deemed necessary by the Department, in order to ensure its relevance to the times; 
(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; 
(g) Formulate long-term policies to balance the sustainability and optimal multiple use of  
water resources, define the hydrologic boundaries of basins of the existing water 
supply sources, and develop or update existing River Basin Master or Comprehensive 
Plans which includes all aspects of water management and development such as 
water supply and sanitation, irrigation, flood control and storm water or urban drainage, 
drought risk management, water resource development systems and other public 
water works projects, including phasing of implementation; 
(h) Identify, based on the river basin master plans, priority packages for water 
infrastructure development per river basin, including water supply, sanitation, irrigation, 
hydropower, flood control and storm water or urban drainage, drought risk 
management, water resource development systems and other public works projects; 
(i) 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; 
(j) Formulate policy, strategies, master plans and programs on flood risk management in 
the context of integrated flood management (IFM) which integrates water, land, coastal 
zone and multi-hazard management. In integrating land use planning and water 
management, the Department shall harmonize and synthesize plans to enable the 
sharing of information between land-use planning and water management authorities. 
In this regard, a holistic approach shall be adopted by making the IFM a part of a wider 
risk or multi-hazard management system that includes earthquakes, landslides, fires, 
tsunamis, droughts, and other calamities of the same gravity or nature; 
(k) Strengthen and coordinate policy making and planning for flood management, 
integrated with storm water 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; 
(l) Assist and provide the NEDA with the required data and input from the water sector in 
the formulation of the country’s short-term and long-term strategic development plans 
and actions, and recommend to the NEDA Board the adoption of general policies and 
guidelines for water resources development; 
(m) 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: Provided, That the approval of water-related projects entered into by 
implementing agencies shall be governed by existing laws. Nothing in this Act shall be 
interpreted as adding other approval requirements for water-related government 
projects; 
(n) Develop and implement, in coordination with other relevant agencies, effective codes, 
standards, benchmarks, and  reasonable  guidelines  on project investigation, 
formulation and planning of water resources infrastructure, 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; 
(o) Ensure that gender equality, social inclusion, environmental protection, climate 
resiliency, disaster risk reduction, and indigenous knowledge systems and practices 
are integrated into any water resource management planning, policy making, and the 
design and construction of water infrastructure; 
(p) Ensure that the planning of water infrastructure considers the highest efficiency and 
most appropriate technology and quality, in accordance with national development 
objectives; 
(q) 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; 


(r) Gather, analyze, and organize needed statistical data and information; for those water-
related data generated by other concerned agencies, establish, in coordination with 
these agencies, the guidelines, standards, methodologies, and protocols for data 
collection that will be officially recognized by the Department, and institute mechanisms 
for coordination with other agencies as regards their submission and certification of 
submitted water-related data to the Department 
(s) In case of gaps in data collection by other agencies, under item (r) above, the 
Department may be authorized to collect the said data in accordance with the 
established guidelines, standards, methodologies and protocols, and in coordination 
with the respective agencies: Provided, That both the Department and other agencies 
ensure that duplication of roles in data collection is prevented; 
(t) Ensure continued stakeholder engagement through the creation of a Multi-Sectoral 
Stakeholder Council with representatives from all water sector stakeholder sectors, 
including vulnerable and indigenous communities: Provided, That the Multi-Sectoral 
Stakeholder Council shall be the primary avenue for all multi-sectoral consultations 
mandated under this Act, and shall be consulted in the formulation of all national plans, 
programs, and policies of the Department: Provided further, That the sectoral 
representatives shall be appointed by the President of the Philippines, hereinafter 
referred to as the President; 
(u) Build a central repository of water data and effect inter-sectoral, inter-agency, and 
inter-departmental coordination on all aspects of data gathering and management for 
water resources development planning and compel the submission of statistics and 
data on water utilization with the aim of operationalizing the integrated approach to 
water resources management; 
(v) Ensure the effective implementation of all the provisions of PD 1067;    
(w) 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;  
(x) Ensure that the easements provided for in Title VII, Chapter 2, Section 2 of RA 386, 
otherwise known as the Civil Code of the Philippines and other relevant laws are 
enforced, especially in all the esteros and waterways, as well as abate the dumping of 
untreated wastewater and sewage into water bodies, including all acts and omissions 
in violation of PD 984, also known as National Pollution Control Decree of 1976, as 
amended, and other related laws; and 
(y) Issue and promulgate rules, regulations and guidelines as may be necessary to 
implement and enforce its powers and functions under this Act. 
 
II. Resource Allocation and 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 
development, 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 Section 13 of Republic Act No. 9275: 
Provided, that the implementation of which shall be transferred from the 
Department of Environment and Natural Resources to the Department of Water 
Resources  
(2) Raw water price, which shall take into account, among others, the scarcity of water; 
and 
(3) Appropriate payment structures for ecosystem services, which shall not exceed 
five centavos (P0.05) per cubic meter of water consumption. 
(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 
aspects of water resources development and management as may be needed to 
support the policy and plan proposals of the Department, such as, but not limited to, 
impacts of climate change, weather modification, flood monitoring and modeling, 
environmental quality, and desalination;  
(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; and 
(m) Review the status of water permits issued and outstanding as of the date of the 
effectivity of this Act and compliance by the water permit holders with the terms of their 
respective water permits. 
      If, in the determination of the Department, acting on the basis of information, 
records and reports submitted by any holders of such water permits, there is non-use 
of the water resource covered by such water permits for a period of one (1) year from 
the date of issuance thereof, the Department shall cause the termination or 
cancellation of any such water permits to the National Water Resources Allocation 
Board: Provided, That the review made by the Department shall be considered prima 
facie evidence of non-use in respect of any affected water permit. For purposes of this 
Section, “non-use” refers to the failure of the water permit holder to utilize the water 
resource or construct substantial works, facilities, systems or other infrastructure had 
been constructed in pursuit of or for the purpose stipulated in the water permit. 
     The Department shall submit a report to Congress on the completion of its review 
under this section within one (1) year from the effectivity of this Act.  
     
III. Institutional Arrangement with Public Water Agencies and 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) Coordinate the planned and ongoing river basin initiatives of government agencies and 
corporations, to which the Department shall review and endorse approval and funding 
from the national budget thereof, as may be provided under existing laws, rules and 
regulations; 
(c) Harmonize all relevant national river basin policies and formulate new policies and 
create enabling policy environment that   shall   allow effective and   efficient 
management and governance of the country’s river basins. To this end, all concerned 
national government agencies and corporations shall consult with the Department in 
such planning and implementation; 
(d) Serve as the national policy coordination office for LGUs and non-governmental 
organizations in the development and sustainability of all river and catchment basins, 
for which the Department shall recommend the approval and funding thereof of 
national government agency and corporations’ support to such local and 
nongovernment river and catchment basin initiatives; 
(e) Serve as the government’s central river basin database management agency, to which 
all government agencies and existing river basin organizations with relevant mandates 
and developmental initiatives within the river basins are required to cooperate and 
regularly submit their updated databases for integration and consolidation; 
(f) Develop materials for capacity building and training of prospective RBOs, as well as 
other concerned units of the Department and other water-related agencies, LGUs, and 
WSPs particularly in the areas of integrated water resources management and river 
basin master planning; 
(g) Authorize its representatives or any deputized agent to enter any property of public 
dominion with prior notice and consent: and 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; 
(h) Provide technical assistance to water users including farmers, communities, and LGUs 
and other WSP whether directly or in coordination with other agencies on all aspects 
of integrated water resources management;  
(i) Respond to consumer complaints, and ensure the adequate promotion of consumer 
interests; 
(j) Deputize agents, whether from the public or private sector, to assist in the performance 
of any of the powers and functions of the Department; and  
(k) 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, Comprehensive 
Development Plans or Provincial Physical Framework and Development Plan.  
 
V. 
 Other Functions 
(a) Create when there are no existing water resources or operators, water resource 
subsidiaries, instrumentalities, and entities to engage in water source development, 
water supply, water transmission, water distribution, waste water treatment and 
management, missionary water access, storm water management, and sanitation in 
accordance with existing laws, without prejudice to private entities capable of and 
willing to engage in the aforementioned activities through concession agreements, joint 
venture agreements, bulk water agreements, or service agreements or contracts. For 
this purpose, the Department shall ensure compliance with existing frameworks, rules, 
regulations and guidelines for private sector participation in water transmission, water 
distribution, waste water treatment and management, storm water management, and 
sanitation.  
(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: Provided, That government entities with mandates to enter into contracts with 
private entities under existing laws shall continue to have such authority: Provided 
further, That nothing in this Act shall be interpreted as adding approval, endorsement, 
or consent requirements for water-related government projects; and 
(c) Exercise such other powers and functions necessary or incidental to the effective 
administration and management of the country’s water resources. 
 
SEC. 9. Composition. - The Department shall be composed of the Office of the Secretary, and 
the various bureaus and services, and regional offices. The Office of the Secretary shall house 
the Office of the Department Secretary, the Offices of the Undersecretaries, the Offices of the 
Assistant Secretaries, and their immediate support staff.  
 
SEC. 10. 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 of Water Resources, who shall be appointed by the President. The Secretary of 
Water Resources shall: 
(a) Submit to the NEDA Board the Department’s recommendations on policies on water 
resources requiring presidential decision, and   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) Advise the President on the status of water management and supply in the country, 
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) Promulgate rules and regulations necessary to carry out the objectives, policies, and 
functions of the Department; 
(e) Exercise supervision and control over all bureaus and offices under the Department;  
(f) Supervise all attached agencies and corporations in accordance with law; 
(g) Represent the Department in contracts, awards, and other similar agreements;  
(h) Delegate authority for the performance of any power or function, as defined herein to 
officials and employees under his direction as deemed appropriate;  
(i) Act as the Chairperson of the governing board of the attached agencies of the 
Department; 


(j) 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; 
(k) Discipline the officials and employees of the Department, including officials and 
employees of all the bureaus and offices under it, in accordance with civil service laws, 
rules, and regulations.; and 
(l) Perform such other duties and responsibilities as may be provided by law. 
The Secretary of Water Resources shall also serve as a voting member of the NEDA 
Board, the Governing Boards of the Climate Change Commission, the National Disaster Risk 
Reduction and Management Council, and the National Land Use Committee .  
 
SEC. 11. Undersecretaries and Assistant Secretaries. – The Secretary of Water Resources 
shall be assisted by not more than three (3) Undersecretaries and three (3) Assistant 
Secretaries, all of which shall be   appointed by the President upon the recommendation of 
the Secretary of Water Resources: Provided, That at least   one (1) Undersecretary and one 
(1) of the Assistant Secretaries shall be career officers. 
The Secretary of Water Resources is hereby authorized to delineate and assign the 
respective functional areas of responsibility of the Undersecretaries and Assistant Secretaries 
in accordance with the mandate and objectives of the Department. Within their respective 
functional areas of responsibility, the Undersecretaries and Assistant Secretaries shall have 
the powers and functions as provided for in Chapter 2, Book IV of the Administrative Code of 
1987. 
 
SEC. 12. Qualifications and Appointment. 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. 
 
SEC. 13. Department Bureaus and Services, and Regional Offices. – The Department shall 
establish, operate, and maintain the Bureaus and Services under it such as, but not limited to: 
(a) Policy and Planning Bureau; 
(b) Decision Support System Bureau; 
(c) Bureau of Technical Services; 
(d) Legal and Legislative research Service; 
(e) Internal Audit Service; 
(f) Public Affairs Service; 
(g) Administrative and Human Resources Service;  
(h) Flood Control and Drainage Coordination Service; and 
(i) Comptrollership and Financial Management Service. 
A Water Resources Regional Office 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 Bureaus, Services and Regional Offices shall each be headed by a Director, 
who shall be responsible for the efficient and effective discharge of the functions of the 
Bureau, Service, or Office concerned. The Bureau Director and Regional Director shall be 
assisted by one (1) Assistant Director. 
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate official 
determined by the Secretary of Water Resources. 
 
SEC. 14.  Attached agencies. - The following agencies shall be attached to the Department 
for purposes of policy and program coordination, monitoring, and evaluation: 
(a) The Local Water Utilities Administration (LWUA), whose mandate, powers, and 
functions are defined in PD 198, as amended, shall be transferred from the 


Department of Environment and Natural Resources (DENR) and attached to the 
Department: Provided, That its economic regulatory functions over local water 
districts shall be fully absorbed by the Water Regulatory Commission created 
under this Act:  Provided further, That its specialized lending functions shall be 
limited to the issuance of guarantees for loans of Local Water Districts from the 
Land Bank of the Philippines or the Development Bank of the Philippines. In the 
implementation of its functions, the LWUA shall: 
(1) 
provide technical assistance and personnel including training programs for 
accounting and fiscal practices of local water utilities; 
(2) 
monitor and evaluate local water standards; and 
(3) 
effect system integration, joint investment and operation, district annexation 
and                       de-annexation whenever economically warranted, in 
accordance with Section 49 of   PD 198, as amended by Section 22 of PD 
768.  
The authority of LWUA to review, approve and regulate the tariff rates of local water 
utilities to whom it has extended loans or other financing under Section 64 of PD 
198, as amended, is hereby transferred to the Water Regulatory Commission as 
provided in this Act. 
(b) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate,  
powers, and functions are defined under RA 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 DENR 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, operate, and dispose its retained assets: Provided further, that its 
regulatory arm, the MWSS – Regulatory Office, shall be fully absorbed by the 
Water Regulatory Commission created under this Act. 
(c) The National Irrigation Administration (NIA), whose mandate, powers, and functions 
are defined under RA 3601 entitled An Act Granting the National Irrigation   
Administration, as amended by PD 552 and PD 1702;  
(d) The Laguna Lake Development Authority (LLDA), whose mandate, powers and 
functions are defined under RA 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. 
The Secretary of Water Resources shall be the Chairperson of the Governing Boards 
of the aforementioned government-owned and controlled corporations to be attached under 
the Department. In case existing laws, rules and regulations provide for a specific process in 
appointing the agency’s   Chairperson, the Secretary of Water Resources shall serve as Co-
Chairperson. 
Any other agency performing water resources management, conservation and 
protection functions may be transferred to the Department as the President deems necessary.  
 
SEC. 15. Offices, Functions and Personnel to be Completely Subsumed under the 
Department.  – The following offices with their applicable powers, functions, personnel, funds 
and appropriations, records, equipment and property shall be subsumed under the 
Department: 
(a) The National Water Resources Board (NWRB) with its divisions and sections, 
whose  mandate, powers and functions are provided in PD 424 creating the 


National Water Resources Council, now NWRB, as amended: Provided, That its 
water utility regulation units and functions vested under Commonwealth Act No. 
146, also known as the Public Service Act, as amended, shall be absorbed by the 
Water Regulatory Commission created under this Act: Provided, further, That its 
resource allocation or regulation units vested under PD 1067 shall be absorbed by 
the National Water Resources Allocation Board  and the Resource Allocation 
Office,  also created under Section 18 of this Act; 
(b) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and 
functions are provided in Executive Order (EO) No. 510, Series of 2006 and EO 
816, Series of 2009, as amended: Provided, That its function pertaining to 
watershed reforestation activities shall be transferred to the DENR-Forest 
Management Bureau, but the targeting of priority watershed areas shall be 
coordinated with the Department; 
(c) The Manila Bay Coordinating Office of the DENR which was strengthened by virtue 
of DENR Administrative Order 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;    
(d) The Water Supply and Sanitation Unit of the Department of the Interior and Local 
Government (DILG); and 
(e) The Water Resources Management Office of the DENR whose mandate, powers 
and functions are provided in EO 22, series of 2023. 
 
SEC. 16. Functions to be Transferred to the Department. – The following functions of the 
respective agencies, bureaus, and units shall be transferred to the Department: 
(a) The planning, programming, administration, monitoring, management of the 
National Sewerage and Septage Management Program (NSSMP) of the 
Department of Public Works and Highways (DPWH); and 
(b) The following functions of the dissolved Pasig River Rehabilitation Commission 
and   transferred to the Manila Bay Task Force per EO 93 series of 2019: 
(1)   Updating and leading in the overall implementation of the Pasig River 
Rehabilitation Master Plan; and 
(2)  Ensuring that the easements provided for in the Civil Code and other relevant 
laws are enforced, especially in all the esteros and waterways as well as 
abating the dumping of untreated wastewater and sewage into water systems, 
including all acts and omissions in violation of PD  984, as amended, and other 
related laws. 
CHAPTER III 
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT    
 
SEC. 17. 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 DENR shall continue to have primary authority and responsibility for protecting 
the environment and   managing the country’s watersheds. Further, the Pollution 
Adjudication Board shall remain to have jurisdiction with respect to adjudication of 
pollution cases based on exceedance of the DENR Effluent Standards and other 
acts defined as prohibited under Section 27 of RA 9275 and filed by this 
Department. Furthermore, the Department shall coordinate with the DENR 
regarding the establishment of protocols for management of all water-related data 
being collected by the DENR; 


(c) The Department of Energy (DOE) and the National Power Corporation 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 Department of Agriculture (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. Furthermore, the Department shall coordinate with the DA and its 
Bureau of Soils and Water Management (BSWM) regarding the establishment of 
protocols for management of all water-related data being collected by DA, as well 
as the outputs of research and studies by BSWM which may serve as input to 
policy formulation by the Department; 
(e) The Department shall coordinate with the National Disaster Risk Reduction and 
Management Council 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, Philippine 
Atmospheric, Geophysical and Astronomical Services Administration, and National 
Mapping and Resource Information Authority for scientific studies, integrated 
surveys, mapping, charting, and decision support systems;  
(g) The Department shall coordinate with the Department of Tourism on recreational 
or visual use of water resources;  
(h) The Department shall coordinate with the Philippine Reclamation Authority, 
Tourism Infrastructure and Enterprise Zone Authority and economic zone 
authorities on water resources development and water requirements within 
reclamation areas, tourism development areas, and economic zones, respectively;  
(i) The Department shall coordinate with the Bangsamoro Autonomous Region in  
Muslim Mindanao (BARMM), specifically its Economic and Development Council, 
Disaster Risk Reduction and Management Council, and Ministry of Environment, 
Natural Resources and Energy, regarding the preparation of master plans of river 
basins that overlap with the inland waters within the BARMM’s  jurisdiction, and 
ensure the alignment of these plans with the NWRMP and the  Bangsamoro 
Development Plan and other related regional plans of BARMM; 
(j) The Department shall coordinate with the DPWH as regards the construction of 
water projects including flood control and other related projects within the purview 
of the DPWH: Provided, That the flood management plans are aligned with the 
NWRMP, and that flood waters be considered and harnessed as potential water 
source: Provider further,                                That the Department shall coordinate 
with the DPWH regarding the establishment of protocols for management of all 
water- related data being collected by the DPWH and its Bureaus; 
(k) The Department shall coordinate with the LGUs that own the specific areas or land 
where raw water will be sourced, as regards the implementation of Section 38 of 
this Act, specifically on the sharing of the total income generated from raw water 
pricing; 
(l) The Department shall coordinate with the Department of Human Settlements and 
Urban Development in planning, monitoring and enforcing integrated land use and 
water resources management in the Comprehensive Land Use Development Plans 
and Zoning Ordinances of the LGUs to ensure, among others, the protection of 
water sources and that water availability is factored in proposed land use 
development plans and projects;  
(m) The Department shall coordinate with relevant government agencies, including 
LGUs, with respect to development projects and shall ensure cross-cutting 
collaboration between and among all water subsectors and facilitate inter-agency 
subsector coordination, strategic development, planning, monitoring and provision 


of technical, institutional and financial capacity building support to their different 
stakeholders at the water subsector level; and 
(n) All other departments and agencies of the government implementing water-related 
functions and projects shall ensure that the programs and projects are consistent 
with the national water management plan of the Department. 
 
CHAPTER IV 
NATIONAL WATER RESOURCES ALLOCATION BOARD 
AND THE RESOURCE ALLOCATION OFFICE 
 
SEC. 18. Reconstitution of the National Water Resources Board (NWRB) as the National 
Water Resources Allocation Board. – The NWRB is hereby reconstituted and shall    
henceforth be known as the National Water Resources Allocation Board, hereafter called the 
“Board”. The water resources allocation and regulation functions of the NWRB are hereby 
transferred to the Board, which shall supervise the effective appropriation and regulation of 
the water resources in the country in accordance with PD 1067. 
The Board shall be composed of the Secretary of Water Resources as the Chair, with 
the Secretary of Environment and Natural Resources as the Vice-Chairperson, and the heads 
of agencies of   the NEDA, Department of Justice, Department of Science and Technology, 
and the University of the Philippines – National Hydraulic Research Center as   members. 
 
SEC. 19. Functions of the Board. The Board shall perform the following functions: 
(a) Promulgate, among others, rules and regulations for the exploitation and optimum 
utilization of water resources, in accordance with PD 1067 and other existing laws, 
including the imposition on water appropriators of such fees or charges by the 
Department of Water Resources: Provided, that the imposition and collection of 
such fees and charges shall be implemented by the Department of Water 
Resources; 
(b) Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Secretariat; 
(c) Review and decide on requests for permits to extract or utilize the country’s water 
resources and grant the corresponding water rights, upon recommendation of the 
Resource Allocation Office: Provided, That the water rights are exercised within 
five (5) years of granting of such rights: Provided further, that applicants for water 
permits shall submit proof of land ownership of, or right to use the property where 
the water source is located: Provided further, That, if the applicant is currently using 
the water source being applied for domestic or municipal purposes upon effectivity 
of this Act, such applicant may submit such proof of prior use of possession of said 
property in lieu of ownership or right to use; 
(d) Exercise appellate jurisdiction over decisions in cases involving the following: 
(1) violations and disputes relating to the appropriation, utilization, exploitation, 
development, control, conservation and protection of waters; 
(2) violations and disputes on raw water fees; and 
(3) violations and disputes involving water permits, administrative allocation of 
water resources and transfer of water rights; 
(f) Issue subpoena duces tecum and subpoena ad testificandum;   
(g) Cite any person or party in contempt for refusal to appear, testify or comply with 
the lawful orders of the Board in relation to any matter subject to its investigation;      
(h) Hear, receive evidence, and decide on cases falling within its jurisdiction;      
(i) Impose the appropriate sanctions over violations committed by appropriators in 
accordance with existing laws, rules and regulations as well as future rules and 
regulations which the Board shall promulgate; 
(j) Review, update, and revise all fees, charges, and penalties imposed on all water 
appropriators as stated under Chapter VII and VIII of PD1067, upon 


recommendation by the Secretariat, and based on scientific and evidence-based 
studies; 
(k) Delegate specific tasks vested unto the Board that may be undertaken by the 
Executive Director, as may be necessary; 
(l) Promulgate its own rules and procedures; and 
(m) Exercise such other powers as may be necessary to carry out its duties and 
responsibilities under this law. 
No injunction may be issued by any court to restrain any proceeding before the 
Board except on the basis of question of law by the Supreme Court on certiorari.  
Every order or decision rendered by the Board shall be in writing and shall state clearly 
and distinctly the facts and the law on which it is based. The Board shall decide each case or 
application within thirty (30) days following its formal submission for resolution. It shall publish 
and make available for public inspection all decisions and final orders including those in the 
adjudication of contested cases or applications. 
 
SEC. 20. Resource Allocation Office – There is hereby created a Resource Allocation Office 
which shall be attached to the Department. It shall serve as Secretariat to the Board and shall 
exercise the following functions in order to provide technical support to the Board towards the 
effective regulation of the country’s water resources: 
(a) Advise the Board on all matters relating to resource allocation and regulation; 
(b) Formulate rules and regulation for the exploitation and optimum utilization of 
surface water, groundwater, and seawater extraction and use, for the approval of 
the Board, and for implementation by the Resource Allocation Office, including the 
processes for the application of water permits, in accordance with PD 1067 and 
other existing laws; 
(c) Process applications of rights to utilize water resources for the appropriate, optimal 
and sustainable use of surface and ground water, for the approval of the Board or 
its Executive Director, as may be delegated by the Board; 
(d) Upon approval by the Board, issue water permits granted to water appropriators; 
(e) Monitor performance of water rights grantees including, among others, ensuring 
that water utilization is in accordance with the terms of the permits granted unto 
them; 
(f) Investigate, motu proprio, violations of the water rights and the Water Code; 
(g) In the case of violations and conflicts between and among users, file the necessary 
cases for the decision of the Board; 
(h) Enforce the decisions promulgated by the Board, and as may be delegated by the 
Board; 
(i) Coordinate with other relevant units of the Department regarding the generation, 
updating, managing, and sharing of water data relevant to each other’s performance 
of functions; 
(j) Respond to consumer complaints, and ensure the adequate promotion of consumer 
interests; and 
(k) Perform such other related functions and activities which are necessary for the 
effective regulation of water-related services. 
The Office shall be headed by an Executive Director which shall have the rank of an 
Undersecretary, and shall be assisted by one (1) Deputy Executive Director which shall have 
the rank of an Assistant Secretary. 
 
CHAPTER V 
WATER REGULATORY COMMISSION 
 
SEC. 21. 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 eighty 


(180) days after the effectivity of this Act. The Commission shall have a Board of 
Commissioners, and shall be vested with powers and functions, as conferred and set forth 
hereunder.  
 
SEC. 22. 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 water supply, including suppliers to subdivisions or other service 
providers, sewerage, 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: Provided, That local water districts, LGU-run and 
private utilities, especially level II and III water service providers found performing 
significantly below prescribed standards shall be required to submit a Public 
Service Improvement Plan with committed performance improvements with a 
one-year implementation timeframe: Provided further, That unjustifiable failure to 
implement provisions of, or meet commitments in, the Public Service 
Improvement Plan shall be cause for dissolution, consolidation, privatization, or 
management takeover of the local water district: Provided, finally, That the 
Commission shall have the power to cause such dissolution, consolidation, 
privatization, or management takeover and shall mandate the Department to 
implement the same; 
(c) 
Coordinate with the Department in the implementation of intervention, 
consolidation, dissolution, privatization, or takeover, and shall ensure the 
continuity of delivery of public service; 
(d)    Coordinate with the Philippine Competition Commission and provide technical 
support in the Commission’s exercise of authority and jurisdiction to establish 
rules and enforce regulations to monitor, investigate, provide remedies for, and 
provide inputs in the Philippine Competition Commission’s hearings and 
deliberations on cases involving any market power abuse or anti-competitive or 
discriminatory act or behavior by or against any participant in the water supply 
and sanitation sector, excluding only those agreements involving projects that 
are not considered natural monopolies, including in respect of the determination 
of whether any merger, acquisition, joint venture or other transaction, agreement 
or arrangement by, between or among water service providers or any participant 
in the water supply and sanitation sector is anti-competitive or will substantially 
prevent, restrict or lessen competition in the relevant market. Without prejudice 
to the actions that the Philippine Competition Commission, pursuant to Republic 
Act No. 10667, may undertake on its own, the Water Regulatory Commission 
may be directed by the Philippine Competition Commission, upon finding that a 
market participant has engaged in, or fell victim to such act or behavior, to stop 
or redress the same within the functions and powers granted to the Water 
Regulatory Commission under this Act.  
(e)     Issue licenses authorizing the operation of water supply and sanitation services, 
including community water services, in any specified area or areas with water 
supply and sanitation services in any specified area in the Philippines: Provided, 
That any license to use water resources or operate water supply and sanitation 
services shall be considered expired if not exercised by the licensee within five 
(5) years upon the date of issuance; 
(f) 
Impose and collect annual levies, and reasonable fees and surcharges as may 
be necessary for achieving the purposes, powers and functions of the 
Commission: Provided, That the rate of annual levies and fees shall be 
determined strictly on a partial cost recovery basis for the reasonable and actual 


cost of regulation: Provided further, That nothing in this section shall be construed 
as authorizing the Commission to impose and collect ad valorem annual levies; 
(g) 
With due regard to the standardized pricing framework developed by the 
Department pursuant to Section 7(h) of this Act, 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. The sewerage and septage management tariffs, rates and charges 
may be in the form of an environmental fee based on the actual water 
consumption of the consumers for regular conduct of desludging and fixed fees 
for emergency desludging; 
The Commission shall endeavor to adopt a local pricing framework, which shall 
provide for the minimum water, sewerage and septage management rates and 
allow for uniform adjustments to the consumer price index, or foreign exchange, 
as applicable, across one or more areas: Provided, That service providers may 
apply for adjustments to the tariff rates taking into consideration their actual and 
proposed expenditures in the construction, operation, and maintenance of their 
respective water, sewerage, and septage management systems. 
All applications for the imposition or adjustment of water and sewerage and 
septage tariffs, rates and charges shall be acted upon by the Commission within 
a period of four (4) months.  If the Commission fails to issue a decision or 
resolution within said prescribed period, the application shall be deemed 
approved; 
 (h) Appraise and value property and equipment used by licensees in providing water 
supply and sanitation services and, for this purpose, develop a database for the 
value of the property and equipment used by the licensees in providing water 
supply and sanitation services by requiring each licensee to submit, on a periodic 
basis, an appraisal report covering such assets duly signed and sealed by an 
appraisal firm duly accredited by the Securities and Exchange Commission: 
Provided, That unless otherwise expressly warranted, the value of such property 
and equipment as determined by such independent appraisal firms shall be 
presumed a true and reasonable valuation thereof; 
(i) 
Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities; 
(j) 
Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu propio violations of Sections 27, 28 and 
29 of this Act; 
(k) 
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; 
(l) 
Require the review  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 propio wherein its determination public interest so dictates; 
(m) Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment 
reports; 
(n) 
Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof; 
(o)   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 targets, including 
but not limited to service expansions, that may have been set in the license; (3) 


where the licensee is found to be manifestly inefficient in the operation of or 
provision of water supply and sanitation services in its area; or (4) when the 
licensee thereof has violated or willfully refused to comply with any order, rule or 
regulation of the Commission or any provision of this Act; 
(p) 
Appoint an interim management committee to ensure continuity of service in case 
a licensee, including those run by local government units, or local water districts, 
fails to meet the conditions of the license;  
(q)   Adopt and require that books, records, and accounts be kept and maintained in 
accordance with the prescribed uniform accounting system; 
(r) 
Fix and determine, for rate-setting purposes, the proper and adequate rates of 
depreciation of properties and equipment used in water supply and sanitation 
services; 
(s) 
Impose and collect annual levies and reasonable fees and surcharges as may 
be necessary for achieving the purposes, powers and functions of the 
Commission; 
(t) 
Require the submission of reports on finances and operations, verified under 
oaths by the owner or president and secretary of the board of the licensee; 
(u) 
Determine and require the monitoring and submission of such data, statistics and 
other information from any or all licensees as may be necessary for the effective 
and efficient exercise of its duties, functions, powers and responsibilities; 
(v) 
Investigate, motu propio or upon a written complaint, any matter concerning the 
operation of the service and violations of Sections 28 and 29 and other provisions 
of this Act, including alleged inefficient or inappropriate performance of 
obligations by water service providers, and, after due process, render decisions 
thereon within one (1) year; 
(w)    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; 
(x) 
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; 
(y) 
Advise, apprise and coordinate with other relevant agencies of the national or 
local government on any matter relating to water supply and sanitation services; 
(z) 
Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
(aa) Appoint an interim or temporary management committee upon appeal and after 
due hearing, to ensure continuity of service in case a licensee, including those 
run by local government units, or local water districts, fails to meet conditions of 
the license; 
(bb) Appoint, hire and maintain adequate staff and personnel, advisers, or 
consultants, with suitable qualifications and experience, as necessary; 
(cc) Exercise original and exclusive jurisdiction over all cases involving disputes 
between and among participants or stakeholders in the water supply and 
sanitation services;  
(dd) Issue rules and regulations on terms and conditions prescribing minimum and 
mandatory terms for concession agreements, joint venture agreements, 
management agreements, service contracts or other contractual arrangements 
that may be entered into by government entities including local water utilities and 
local government units and private sector entities or other water service providers 
for the provision of water or sanitation services, such as the (i) the term, scope 
and total cost of the activity, which may be subdivided into phases; (ii) committed 
contributions and corresponding performance security requirements in 
accordance with any agreed phased implementation of the activity; and (iii) cost 


recovery schemes and percentage of the parties’ share in the profits and losses, 
among others; 
(ee)  Upon the recommendation of the Department, and after due notice and hearing, 
terminate or cancel water permits issued and outstanding as of the date of the 
effectivity of this Act  to any government or private sector entities to ensure 
optimal and efficient use of water resources. The Commission shall principally 
rely on the prima facie findings of the Department, acting on the basis of 
information, records and reports submitted by any holders of such water permits 
as of the effectivity date of this Act, that the water resource covered by such water 
permits have not been substantially utilized or no substantial water works 
facilities, systems or other infrastructure has been constructed in pursuit thereof, 
in each case, for a period one (1) year from the date of issuance thereof, or if the 
water is used, totally or partially, for any purpose other than those approved in 
the water permit. The Commission shall decide on the recommendation for the 
Department within six (6) months from receipt of the recommendation. The 
Commission by itself may exercise this function; 
(ff) Issue rules, guidelines, procedures, and methodologies for the determination of the 
appropriate water and sewerage and septage management tariffs, rates and 
charges and review and confirm such tariffs; 
(gg) Issue rules, guidelines, procedures and methodologies for the computation of any 
adjustment of any approved water and sewerage and septage management 
tariffs, rates and charges based on the prevailing consumer price index or foreign 
exchange adjustments set by the appropriate national government agency, or 
any other factors customary in the water  or sanitation industries which require 
adjustment or rebasing of the tariffs, which adjustment shall be implemented 
automatically subject to a thirty (30) day prior written notice to the Commission; 
(hh) Determine the existence of any material adverse government action which has a 
material and adverse effect on any of the rights and privileges of, or on the 
enjoyment or exercise thereof by the licensees, or which has a material and 
adverse effect on the licensees’ ability to comply with their financial or other 
contractual obligations to provide water  or sanitation services, and determine 
the appropriate remedial measures therefor, which may include compensation or 
extension of permits or licenses; and 
(ii) 
Perform such other incidental powers and functions as may be necessary to 
attain the objectives of this Act. 
 
SEC. 23. Composition of the 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. 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, at least one (1) shall be a certified public accountant with at least ten (10) 
years of experience in active practice, and at least one (1) shall be a licensed 
engineer with experience in the water sector. 
(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 subject to the review and approval of the Department of Budget 
and Management (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) 
Maintain a database on the water supply and sanitation subsector; and  
(c) 
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 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 the provisions of RA 6758, as amended, otherwise 


known as the Compensation and Position Classification Act of 1989, as amended, and other 
relevant laws. 
 
CHAPTER VI 
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 its rules, guidelines, procedures and other issuances of the Commission, obtain a 
license to operate from the appropriate regulatory units: Provided, That the Commission shall 
act on the application for the issuance or the conversion of such licenses and renewals thereof 
within the maximum period of one (1) year as provided under this Act or by RA 11032, 
otherwise known as the Ease of Doing Business and Efficient Government Service Delivery 
Act of 2018.  
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. 
Concession agreements, joint venture agreement, bulk water supply agreements, 
management and service 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. Until the issuance of new or converted or updated 
registrations, licenses or permits, as contemplated under this Act, such existing concession 
agreements, joint venture agreements, bulk water supply agreements, management and 
service agreements and other contracts for water supply provision or water sanitation 
treatment services shall serve as the license or other legal basis for the authority to engage in 
water supply or sanitation services during the term thereof. 
 
SEC 28.  Conditions of License. – The Commission 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; and 
(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 CoC issued by LWUA, to convert their existing certificates into 
licenses to operate in accordance with Sec. 27 hereof. 
To ensure continuity of water and sanitation services, a CPC, CPCN, provisional 
authority or a CoC issued by NWRB or the LWUA prior to the effectivity of this Act shall remain 
valid for a period of five (5) years counted from the later of the date of issuance thereof or the 
date of effectivity of the implementing rules and regulations duly issued by the Commission 
for the conversion thereof into licenses to operate in accordance with this Act. 
All local water utilities, existing water service providers or holders of CPCN or CoC 
shall be duly prioritized in the issuance of the licenses to operate over the areas where they 
currently operate or as may be covered by their franchises. The submission of the CPC, 
CPCN, provisional authority, or the CoC issued by the NWRB or LWUA shall be sufficient 
basis for the issuance of the new and converted or updated licenses to operate required and 
contemplated under this Act. To ensure continuity of service, the Commission shall complete 
the issuance of such converted or updated licenses not later than six (6) months from the 
effectivity of the implementing rules and regulations issued by the Commission pursuant to 
this Act. 
All existing providers of water supply and sanitation services without a legal and valid 
CPC, CPCN, provisional authority or CoC shall register with the Commission 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, and the DOH. 
(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 RA 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 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. – With due regard to the standardized 
pricing framework developed by the Department pursuant to Section 7(h) of this Act, the 
Commission shall establish tariffs, rates and other charges which are fair and reasonable, and 
ensure economic viability and a fair return on investments.  
Service providers may apply for the setting of tariffs, rates and charges 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)    Capacity to pay of the customers/consumers;  
(e)    Equity considerations;  
(f)    Administrative simplicity; 
(g)   In cases involving valid and subsisting concession agreements prior to the 
enactment of this Act, the methodology provided under the Concession 
Agreement; 
(h)    Compliance with obligations as set out under pertinent laws, jurisprudence, and, 
in cases involving valid and subsisting concession agreements prior to the 
enactment of this Act, the provisions of the Concession Agreement; and 
(i)    To the fullest extent practicable, the terms and conditions of the tariffs, rates or 
other  price-setting mechanisms set forth in any concession agreement, joint 
venture agreement or other similar agreement for the provision of water or 
sanitation services by an existing service provider. 
Tariffs, rates and charges set shall be presumed valid and reasonable unless 
invalidated by the Commission, after due notice and hearing, acting on a protest or contest 
duly filed with the Commission to ensure continuity of service, application for setting of tariffs, 
rates and other charges shall be decided within a non-extendible period of ninety (90) days 
from the date of filing thereof, and the failure of the Commission to act on any such applications 
shall result in a provisional approval: Provided, That in no case shall proceedings on any 
applications for the setting of tariffs, rates and other charges exceed to a total period of one 
hundred twenty (120) days reckoned form the date of filing of the application. 
 
SEC. 31. Direct Access. – Fifty-one (51) percent of the registered water consumers in a service 
area, municipality, city or province may petition for direct access to water from any water 
service provider subject to concurrence by and reasonable compensation to the service 
provider and approval by the Commission. If the petition for direct access from any water 
service provider is approved by the Commission, the new water service provider shall 
reimburse the existing service provider for,                as applicable, either the book value or 
the market value as determined by an independent appraiser accredited by the Commission, 
whichever is higher, of the water source, water supply or water distribution or transmission 
facilities, pipelines and other equipment which shall be transferred to or utilized by the new 
water service provider.  The Commission shall promulgate the implementing rules and 
procedures for this mode of service, which shall include, among others, financial and technical 
capability of the new service provider.  
 
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 VII 
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 VIII 
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 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; and 
(2) 
LGUs for development projects relating to water supply and sanitation. 
(3) 
PCC for the provision of its technical advisory services in the exercise of 
the exclusive authority and jurisdiction of the Commission to investigate and 
act on any market power abuse or anti-competitive or discriminatory act or 


behavior by or against any participant in the water supply and sanitation 
sector. 
CHAPTER IX 
TRANSITORY PROVISIONS 
 
SEC. 37. Organizational Structure and Staffing Pattern. – The Secretary of the Department 
and the Chairperson of the Commission shall determine the respective organizational 
structure and staffing pattern of the Department and the Commission in accordance with the 
revised compensation and position classification system subject to the evaluation and 
approval of the Department and Budget Management and in compliance with the civil service 
laws, rules and regulations and other relevant laws. 
 
SEC. 38. Transfer of Rights and Functions. – The Department shall, by virtue of this Act           
be subrogated to all the rights and assume all the functions of the government agencies and 
units whose powers and functions have been subsumed, absorbed, transferred or attached to 
the Department. The Commission shall also, by virtue of this Act, be subrogated to all the 
rights, and assume all the functions, 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 in accordance with the rules and regulations of the Civil Service Commission 
(CSC). 
The transfer of powers and functions to the Department or the Commission of the 
concerned agencies as herein provided for, shall be deemed completed within twelve (12) 
months after the effectivity of this Act. All agencies transferred, subsumed and attached to the 
Department or Commission shall continue to function under their present mandates until the 
six-month transition period mandated under this Act shall have lapsed. The transfer of powers 
and functions shall include all applicable funds, personnel, records, property and equipment, 
as may be necessary.  The heads of the affected agencies shall continue to serve until 
replaced. 
All rights and functions of the affected agencies are hereby transferred to and assumed 
by the Department or 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. 
Performance audit of all water-related agencies and institutions, including LWUA and 
water districts, MWSS, MWSS-RO and its concessionaires, LGU- run utilities, Tourism 
Infrastructure and Enterprise Zone Authority, Philippine Economic Zone Authority, Bases 
Conversion and Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA, 
shall be conducted by the Department. 
 
SEC. 39. Absorption, Separation or Retirement from Service of Employees of the Subrogated 
Agencies. – The current employees of all government agencies and units whose powers and 
functions have been transferred to, absorbed or subsumed by the Department or Commission 
shall enjoy security of tenure, in accordance with their staffing pattern and the selection 
process as prescribed under                     RA 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. 
 
CHAPTER X 
FINAL PROVISIONS 
 
SEC. 40. Applicability of Ease of Doing Business Law. – The prescribed processing time 
provided under Section 9.b of  RA 11032, shall be applicable to all agencies and LGUs covered 
under this Act particularly on accessing government services. 


SEC. 41. Appropriations. – The amount necessary for the initial implementation of this Act 
shall be charged against the currents year’s appropriations of the agencies, entities, divisions, 
sections or units subsumed or transferred to the Department. Thereafter, such amount shall 
be included in the annual General Appropriations Act.  
 
SEC. 42. Water Trust Fund. – There is hereby created a Water Trust Fund in the Bureau of 
Treasury sourced from raw water pricing, permit fees, registration fees, supervision and 
regulation enforcement fees, filing fees, testing fees, payments for ecosystem services, and 
other service income from the use of water resources. The Trust Fund shall be administered 
by the Department. The annual levies, and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers and function of the Commission under Section 
22 (f) of this Act shall also be remitted to the Water Trust Fund.  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 proceeds generated from raw 
water extraction and all payments for ecosystem services 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: Provided further, That the Department shall 
prescribe standards for programs and projects where proceeds from payments for ecosystem 
services shall be utilized. 
 
SEC. 43. Implementing Rules and Regulations. – Upon the effectivity of this Act, the 
Department and the Commission, as may be applicable, as well as NEDA, DBM, DENR, CSC, 
and the National Commission on Indigenous Peoples in consultation with concerned 
government agencies shall: 
(a) 
Promulgate the rules and regulations of the Department and the Commission 
necessary for the effective implementation of this Act within one hundred twenty 
(120) days after its effectivity; and 
(b) 
Submit to the DBM the Department’s and the Commission’s budget for fiscal year 
following the promulgation of its implementing rules and regulations; and 
implement the training of the personnel of the Department and the Commission. 
SEC. 44. Mandatory Review of the Implementation of this Act. - The Department and the 
Commission shall conduct a review of the implementation of this Act at the end of the fifth (5th) 
year from the date of its effectivity and submit a report to Congress. 
 
SEC. 45. 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. 46. 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 RA 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)     Section 62, 63, and 66 of 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, series of 
1978, Letter of Instruction No. 744, series of 1978, EO 124, series of 1987, 
EO 123, series of 2002, and. EO 860, series of 2010, on the regulation of 
water districts.   


3)     Section 1 of EO 124-A series of 1987, amending EO 124, dated 30 January 
1987, Reorganizing the Department of Public Works and Highways, 
Redefining Its Powers and Functions, and For Other Purposes on 
reorganizing the National Water Resources Council into the National Water 
Resources Board. 
4)     EO 510 series of 2006 creating the RBCO, and EO 516 series of 2009 
declaring the RBCO under the DENR as lead government agency for the 
integrated planning, management, rehabilitation, and development of the 
country’s river basins. 
5)     EO 22, series of 2023 creating the Water Resources Management Office of 
the DENR. 
(b)     The following provisions are hereby amended accordingly: 
1)      Section 3 paragraph 3 Commonwealth Act No. 146, as amended, pertaining 
to all cases involving the fixing of rates;   
2)     Section 154, Article V, Chapter I, Title One, Book II of RA 7160,  as amended, 
otherwise known as the “Local Government Code of 1991”, and its 
implementing rules and regulations on the power of the LGUs to fix the 
rates of water utilities owned, operated and maintained by them within their 
jurisdiction       is hereby repealed or modified accordingly.  
3)   Section 13 (b) on the regulation of enterprises within the Economic Zone 
under RA 7916 as amended, otherwise known as “The Special Economic 
Zone Act of 1995”; 
4)     Section 69 of RA 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 of RA 9275, transferring the administration of the NSSMP from 
the DPWH to the Department; 
6)    Articles 3(d) and Chapters VII and VIII of PD 1067 pertaining to the 
enforcement of the Water Code; 
7)     Section 15 (Conditions in Permits) of the Implementing Rules and 
Regulations (IRR) of PD 1067; 
8)     Section 3.2(b) EO 149, Series of 1993 transferring the Laguna Lake 
Development Authority from the Office of the President to the DENR; and 
9)     EO 168, Series of 2022, which transferred the National Irrigation 
Administration from the Office of the President to the DA; 
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. 47. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
 
Approved,