REPUBLIC OF 1HE PHILIPPINES 
HOUSE OF REPRESENTATIVES 
QUEZON CITY 
NINETEEN1H CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ _ 
Introduced by 
REPRESENTATIVE ATTY. GERVILLE /;JINKY BITRICS" R. LUISTRO 
EXPLANATORY NOTE 
Water access is a basic human right1. The State is therefore required to govern 
water access for its people, including: (i) the development and utilization of safe and 
affordable water supply, (ii) improved water sanitation services delivered to its 
citizens, and (iii) the protection, preservation, and continuous revival of the 
country's water resources for sustainability and ecological balance. 
This bill aims to ensure and accelerate universal access to water supply and 
sanitation services. It also seeks to encourage the participation of the private sector 
in fostering and prioritizing water-related infrastructure projects that adopt 
innovative solutions and best global practices amid the challenges of climate change. 
In ptusuit of universal access to water for our people, this measure proposes 
the establishment the Department of Water Resources (DWR) as the primary agency 
responsible for the comprehensive mapping and integrated identification of the 
State's water resources. In addition, this bill mandates the DWR to be responsible for 
the planning and policy formulation, including the management ov.rnership, 
appropriation, utilization, exploitation, development, protection and sustainability 
of water resources of the country, in coordination with other national agencies and 
stakeholders. 
This bill likewise: 
-
declares that all water and water treatment infrastructure projects are projects
imbued with national interest;
-
adopts an Integrated Water Resource Management (IWRM) as the strategic
framework for national water management, policy-making, and planning;
-
empowers DWR to create water resource subsidiaries, instrumentalities, and
1 https://www.un.org/waterforlifedecade/human right to water.shtml 
November 7, 2022
8:25 am
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REPUBLIC OF THE PHILIPPINES 
HOUSE OF REPRESENTATIVES 
QUEZON CITY 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. __________ 
Introduced by  
REPRESENTATIVE ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
AN ACT CREATING THE DEPARTMENT OF WATER, IRRIGATION, 
SEWAGE, AND SANITATION RESOURCE MANAGEMENT, DEFINING ITS 
POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER 1  
GENERAL PROVISIONS 
SECTION 1. Short Title. This Act shall be known as the Department of Water, 
Irrigation, Sewage, and Sanitation Resource Management Act. 
SECTION 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 
5810


climate change. Further, all water and water treatment infrastructure projects are 
hereby declared as projects imbued with national interest. 
 
SECTION 3. Definition of Terms. As used in this Act: 
 
(a) Bulk water supplier refers to any entity, natural or juridical, whether public or 
private, supplying or intending to supply large quantities of raw or treated 
water to buyers who will use these for their own consumption, such as 
industrial companies, or for retail distribution to consumers such as water 
service providers 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. 
 
(d) Flood Risk Management (FRM) refers to such acts of defining and 
determining the appropriate methods, acts, and protocols aimed at preventing 
and reducing the risk of incurring loss of both life and property due to flood 
waters. Flood risk management consists of a cycle of prevention, mitigation, 
adaptation, preparedness and early warning, and response and recovery. The 
elements of FRM include: integrating land-use planning and coastal zone 
management into water management; adopting a holistic approach so that 
FRM is part of wider risk or multi-hazard management of earthquakes, 
landslides, and storm surges; managing risk and uncertainty as a whole so it 
not only mitigates hydrological uncertainties but also social, economic and 
political uncertainties on account of human behavior and the cultural 
dimensions of FRM.  
 
(e) Gender Equality refers to the principle asserting the equality of men and 
women and their right to enjoy equal conditions realizing their full human 
potentials to contribute to and benefit from the results of development, and 
with the State recognizing that all human beings are free and equal in dignity 
and rights.  
 
(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) Levels of water supply refer to communal sources of water described 
according to location and size of the recipient human settlement as follows: 
 
(1) Level I or the point source is a protected well or a developed spring 
with an outlet but without any distribution system, generally 
adaptable to rural and upland areas where houses are thinly 
scattered, and is a facility which usually serves an average of 15 
households. 
(2) Level II or the communal faucet system or stand posts is a system 
composed of a water source, a reservoir, a piped distribution 
network, and communal faucets where one faucet serves 4 to 6 
households and is generally suitable for rural and urban fringe 
areas where houses are clustered densely to justify a simple piped 
system.  
(3) Level III or the waterworks system or individual house connections 
is a system with a water source, a reservoir, a piped distribution 
network and household taps, suitable for densely populated urban 
areas. 
 
(i) License refers to the Water Supply and/or Sanitation Services Operating 
License that the Water Regulatory Commission is authorized to grant 
and issue to service providers.  
 
(j) Licensee refers to a service provider to whom a license is granted or issued by 
the Water Regulatory Commission.  
 
(k) Missionary Water Services refer to water supply or services to areas that have 
no existing safe water supply and services due to geographic limitation or 
absence of economic and market viability.  
 
(l) National Water Resources Management Plan (NWRMP) refers to a policy 
document that contains a framework to guide the development and 
management of all the water resources in the Philippines, the general 
strategies and work to be pursued to ensure the sustainability of the resource 
towards water security, and top-level direction on the utilization of existing 


water resources in line with national development plans, policies, and 
programs in accordance with the IWRM framework. The NWRMP shall 
also include a water infrastructure development program of all waters of the 
country as well as provide general guidance on how this shall be 
supported within an integrated financing framework that can draw from 
public, private, and international development funding sources.  
 
(m) Net Waste Load refers to the difference of the initial waste load of the 
abstracted water and the waste load of the final effluent discharge of an 
industry.  
 
(n) Regulatory Units refer to the offices established under Section 20 of this Act 
which issue licenses authorizing the operation of Water Supply and Sanitation 
Services, and provide, review, determine, fix, and approve water and 
sewerage tariffs, rates, and charges that licensees may impose.  
 
(o) River basin refers to an area of land drained by a stream or body of fixed 
water and its tributaries which have a common outlet for surface run-off.  
 
(p) River Basin Organization (RBO) refers to multi-stakeholder organizations 
which plan, coordinate, and monitor activities within a river basin cluster.  
 
(q) Sanitation refers to the provision of facilities and services for the safe 
management of human excreta, from toilet to containment, and storage and 
treatment onsite or conveyance, treatment and eventual safe end use or 
disposal, and includes the safe management of solid waste and animal waste.  
 
(r) Sediment management refers to control of sediment erosion and deposition 
in rivers, reservoirs, and coastal zones through non-structural and structural 
measures and control works.  
 
(s) Sustainable Development Goals (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 all 
United Nations Member States in 2015.  
 
(t) Septage is the liquid and solid material pumped from a septic tank, cesspool, 
or other primary treatment source.  
 
(u) Septage Management refers to the provision of proper collection, treatment, 
and disposal of septage.  
 
(v) Service Area refers to the area covered by the water distribution system, 
sewerage, and/or septage management services.  
 
(w) Service Provider refers to any entity, natural or juridical, whether private or 


public, providing or intending to provide levels II & III water supply, 
including bulk water suppliers, sewerage, septage treatment, and disposal 
services for domestic, residential, industrial, or commercial use.  
 
(x) Sewage refers to water borne human or animal wastes, excluding oil or 
oil waste, removed from residences, buildings, institutions, and industrial 
and commercial establishments together with such groundwater, surface 
water and storm waters as may be present including such waste from 
vessels, offshore structures, other receptacles intended to receive or retain 
waste or other places or the combination thereof.  
 
(y) Sewerage refers 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.  
 
(z) Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose sewage.  
 
(aa) Social inclusion refers to the process of improving the terms for 
disadvantaged individuals and groups to take part in society.  
 
(bb) Tariffs refer to such amounts which may be charged by licensees for their 
water supply and sanitation services based on principles, standards, and 
guidelines established by the Department of Water Resources.  
 
(cc) Water Demand Management (WDM) refers to any method, whether 
technical, economic, administrative, financial, or social that will accomplish 
one or more of the following:  
 
(1) Reduce the quantity or quality 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. 
 
(dd) Water Districts refer to government-owned and controlled corporations 
organized under Presidential Decree No. 198, as amended, created primarily 
to acquire, install, operate, maintain, and improve water supply and 
distribution systems for domestic, industrial and municipal uses of residents 


and to provide, maintain and operate wastewater collection, treatment and 
disposal facilities within the boundaries of the district.  
 
(ee) Water pollution refers to any alteration of the physical, chemical, biological, 
or radiological properties of a body of water resulting in the impairment of 
its purity or quality.  
 
(ff) Water Resource refers to water under the ground or groundwater, water 
above the ground such as surface water, run-offs, floods, stormwater and 
urban drainage, treated wastewater, water in the atmosphere or rainwater, 
and the waters of the sea within the territorial jurisdiction of the Philippines.  
 
(gg) Water Resources Regions refer to the contiguous clusters of river basins 
which are grouped together according to the hydrological boundaries, 
physiographic features, and homogeneity in climate, whether or not they 
straddle different local government units, for administrative purposes 
under the Department of Water Resources.  
 
(hh) Water Service Provider (WSP) refers to the water district, any Local 
Government Unit (LGU)-run water utility, Barangay Waterworks and 
Sanitation Association (BWSA), Rural Waterworks Sanitation Association 
(RWSA), cooperative and private sector entity that provides water supply 
services to any given area.  
 
(ii) Water supply service refers to any activity comprising Levels I, II and III 
water supply including bulk suppliers, suppliers to subdivisions, and other 
water service providers. 
 
 
CHAPTER II 
THE DEPARTMENT OF WATER RESOURCES 
 
SECTION 4. The Department of Water Resources. There is hereby created and 
established the Department of Water Resources, hereinafter referred to as the 
Department. 
 
SECTION 5. Mandate of the Department. The Department shall be the primary 
agency responsible for the comprehensive and integrated identification and 
mapping of all water resources, planning, policy formulation, and management of 
the ownership, appropriation, utilization, exploitation, development, and protection 
of water resources in the Philippines to 
ensure the optimal use thereof for domestic and municipal water supply, sanitation, 
irrigation, hydropower, industry, navigation, flood management, and recreation 
except fisheries or aquaculture. 
 
The Department shall also be the primary agency responsible for the planning 


and policy formulation towards the attainment of universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sanitation services for all 
Filipinos. 
 
The Department shall be the primary national agency to enforce Presidential 
Decree No. 1067 otherwise known as The Water Code of the Philippines and Republic 
Act No. 9275, otherwise known as the Philippine Clean Water Act of 2004. 
 
The Department shall exercise the powers and functions of the defunct Pasig 
River Rehabilitation Commission created under Executive Order No. 54 Series of 
1999 and abolished under Executive Order No. 93 Series of 2019, specifically the 
following roles that were transferred to the Manila Bay Task Force and DENR 
through the latter EO: 
 
(a) Update and take the lead in the overall implementation of the Pasig River 
Rehabilitation Master Plan, which shall harness the Pasig River’s potential for 
transportation, recreation and tourism purposes while undertaking the 
rehabilitation and restoration of its maritime life; and  
 
(b) Ensure that the easements provided for in the Civil Code and other relevant 
laws are enforced, especially in all the esteros and waterways that drain into 
the Pasig River, as well as abate the dumping of untreated industrial 
wastewater and sewerage into the river, including all acts and omissions in 
violation of Presidential Decree (PD) No. 984, s. 1976, as amended entitled, 
Providing For The Revision Of Republic Act No. 3931, Commonly Known As 
The Pollution Control Law, And For Other Purposes, PD No. 274, s. 1973 
entitled, Pertaining To The Preservation, Beautification, Improvement And 
Gainful Utilization Of The Pasig River, Providing For The Regulation And 
Control Of Pollution Of The River And Its Banks In Order To Enhance Its 
Development, Thereby Maximizing Its Utilization For Socio- Economic 
Purposes, and other related laws. 
 
SECTION 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, non-government organizations, 
private organizations, individuals, even global societal actors, and in various 
sectors such as water supply, irrigation, fisheries, hydropower, navigation, 
ecosystem services, flood management, climate change, and recreation. It 
shall entail publicly transparent, socially accountable, and multi-stakeholder 
participatory water policy planning, management, and decision-making 
processes.  
 
(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 (IEC) programs, assessment and 
allocation tools, or regulatory functions. It shall observe the mutual 
accountability mechanism among stakeholders at the national, regional, and 
global levels reinforcing multi-stakeholder decision-making following a 
framework with specific, measurable, attainable, relevant, and timely actions.  
 
(d) Each river basin has its unique characteristics relating to the physical, socio 
cultural, and other aspects, and water management shall be performed at 
river-basin level, involving all the stakeholders at 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 development of water resources shall include strategies for the mitigation 
of water-related hazards and climate change adaptation.  
 
(g) Water resources and services should be provided where they are intended 
and most needed so that water is fairly and sustainably managed.  
 
(h) The proper operation and maintenance of waterworks systems resulting in 
the uninterrupted and adequate supply and distribution of potable water for 
domestic and other purposes, and the proper operation and maintenance of 
sewerage systems which are essential services to public health and safety, are 
to be ensured at all times. The State shall therefore supervise and control the 
establishment, operation, and maintenance of such systems. 
 
SECTION 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 in a manner consistent with the protection, 
preservation, and revival of the quality of the country’s water resources, and to 
adopt all needed measures to advance the right of the people to a balanced 
and healthful ecology in accord with the rhythm and harmony of nature.  
 
(c) Strengthen and coordinate integrated water resources management planning 
and policy making to ensure sustainable and fair allocation and efficient use 
of water resources among competing uses and users;  
 
(d) Ensure that integrated water resources management is strongly coordinated 
with land use and coastal and multi-hazard planning and management;  
 
(e) Develop sustainably, and manage water sources and water resources toward 
water security, taking into consideration water, land, and related resources 
aimed at increasing water dependability for different uses, optimizing 
economic benefits and social welfare without compromising the sustainability 
of vital environmental systems;  
 
(f) Strengthen and coordinate policy making and planning towards ensuring the 
availability of water for food security and energy security, as well as towards 
the protection of communities and environments against flood and other 
water induced hazards including sediment hazards;  
 
(g) Ensure that the strategy for water resources development and conservation is 
participatory, and that planners, policymakers and users including 
community members are involved at all levels;  
 
(h) Develop a standardized pricing framework for water use that accounts for 
environmental externalities; and  
 
(i) Ensure that all sources of water, including surface water, groundwater, 
rainwater, and floodwater are identified, mapped, monitored, conserved, and 
managed for productive use and the resulting wastewater is managed 
properly, reused, and responsibly disposed of following approved 
environmental standards. 
 
SECTION 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, 
stormwater utilization, and urban drainage.  Such policies shall, among 
other guidelines, integrate the issues of water and sanitation, food 
security, energy, environment and flood control, and climate change; 
 
(c) Formulate and develop policies to promote and ensure universal access to 
safe, adequate, affordable, and sustainable water supply, and improved 
sanitation services for all Filipinos;  
 
(d) Regularly update, every five years or as deemed necessary by the 
Department, and in consultation with other agencies and stakeholders, the 
NWRMP following the IWRM framework and integrate therein a national 
land use plan;  
 
(e) Undertake river basin survey, inventory and appraisal of water and related 
resources, and develop comprehensive basin-wide plans of storage, 
retardation, and control to maximize conservation and multipurpose use 
of water in the basin; 
 
(f) Conduct continuing hydrological and hydrometeorological surveys and 
studies of the country’s renewable water supply, and establish, operate, 
and maintain observation station 
networks with 
a view towards 
formulating 
long-term 
policies 
to 
balance the sustainability and 
optimal multiple use of water resources, defining the hydrologic 
boundaries of basins of the existing water supply sources and developing 
or updating and implementing countrywide comprehensive basin-wide 
master plans;  
 
(g) Strengthen and coordinate policy making and planning for flood 
management, integrated with stormwater or urban drainage and 
appropriate retention or retarding basins in order to harvest and reuse 
water, and to plan against, prevent, and minimize the detrimental and 
catastrophic effects of flooding;  
 
(h) Assist and provide the National Economic and Development Authority 
(NEDA) with the required data and input from the water sector in the 
formulation of the country’s short-term and long-term strategic 
development plans and actions, and recommend to the NEDA Board the 
adoption of general policies and guidelines for water resources 
development;  


 
(i) Review, approve, and provide oversight over 
all water-related 
development plans and programs of any agency within the context of the 
NWRMP, and overall national plans and programs;  
 
(j) Develop and implement, in coordination with other relevant agencies, 
effective codes, standards, benchmarks, and reasonable guidelines to 
ensure the safety of all public and private water structures in the country, 
and assure efficiency and proper quality in the construction of water, 
sanitation, 
irrigation, 
hydropower, 
flood 
control 
and 
drainage 
infrastructure;  
 
(k) Ensure that gender equality, social inclusion, environmental protection, 
climate resiliency, and disaster risk reduction are integrated into any water 
resource management planning, policy-making, and the design and 
construction of water infrastructure;  
 
(l) Ensure that the planning and design of water infrastructure considers the 
highest efficiency and most appropriate technology and quality, in 
accordance with national development objectives;  
 
(m) Review existing guidelines appropriate for private sector participation 
in the water sector and submit recommendations to the Public-Private 
Partnership (PPP) Center of NEDA and other concerned agencies to 
promote and enable more PPPs in the sector;  
 
(n) Build a central repository of water data and effect inter-sectoral, inter-
agency, and inter-departmental coordination on all aspects of data 
gathering and management for water resources development planning 
and compel the submission of statistics and data on water utilization with 
the aim of operationalizing the integrated approach to water resources 
management;  
 
(o) Ensure the effective implementation of all the provisions of Republic Act 
No. 9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, 
Chapter II of Presidential Decree No. 856, otherwise known as the Code 
on Sanitation of the Philippines, unless amended;  
 
(p) Promote Philippine participation in information sharing and education on 
best practices in support of international efforts to achieve universal 
access to safe water and improved sanitation; and the integration of 
water, energy, environment and food security; and  
 
(q) Issue and promulgate rules, regulations and guidelines as may be 
necessary to implement and enforce its powers and functions under this 
Act. 


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


centralized water resources data center for the scientific survey and 
appraisal of surface and groundwater potentials of the country, and 
determine the annual renewable water available per water resources 
region;  
 
(i) Maintain a database that will contain updated relevant information on 
water data which will be accessible by relevant and authorized users;  
 
(j) Develop and continuously update a computerized decision support 
system that incorporates data management systems relating to acquisition 
and database, model base in terms of physical design, planning and 
decision models, and user-friendly interface concerning graphical and 
visualization tools;  
 
(k) Conduct and promote special studies and research on water economics 
and other water resources development and management issues and 
concerns such as climate change, weather modification, flood monitoring 
and modeling, environmental quality, and desalination; and  
 
(l) Raise 
public 
awareness 
through 
information, 
education 
and 
communications programs, and build capacities for informed participation 
in water resources management at the national and river-basin level. 
 
(III) Institutional Arrangement with Public Water Organizations 
 
(a) Develop guidelines including rules of partnership, between and among the 
Department, field offices of national government agencies, LGUs and other 
stakeholders in water resource management, and facilitate the establishment 
of multi- stakeholder river basin organizations (RBOs) per river basin, and 
strengthen and support existing RBOs and monitor their activities;  
 
(b) Develop materials for capacity building and training of prospective RBOs;  
 
(c) Authorize its representatives or any deputized agent to enter any property 
of public dominion with or without prior notice and consent, any private 
land, building or enclave, whether inhabited or not, for the purpose of 
conducting hydrologic surveys and investigations, including assessing 
and 
evaluating 
the conditions 
of 
water 
facilities installed, and 
determining compliance with water laws and standards;  
 
(d) Provide technical assistance to water users including farmers, communities, 
and LGUs and other water service providers (WSP) whether directly or in 
coordination with other agencies on all aspects of integrated water 
resources management;  
 
(e) Respond to consumer complaints, and ensure the adequate promotion of 


consumer interests;  
 
(f) Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Department;  
 
(g) Appoint, hire, and maintain adequate staff and personnel, advisers or 
consultants with suitable qualifications and experience, as necessary, 
subject to existing rules and regulations. 
 
(IV) Coordination 
 
(a) Coordinate and integrate water resources development activities of the 
country within the context of national plans and policies for social and 
economic development;  
 
(b) Coordinate with other government agencies, universities, academe and 
private professional groups in all aspects of data gathering, the conduct of 
special studies and research on all related aspects of water resources 
management and development such as climate change, environmental 
quality, desalination, and the development of operating strategies, 
procedures, and protocols and accompanying computerized decision tools 
for major water facilities;  
 
(c) Coordinate with the concerned and relevant agencies engaged in flood 
control, flood risk management, and drought risk management; and  
 
(d) Coordinate proactively with LGUs to ensure the integration of water 
resources development plans into their comprehensive land use plans 
(CLUPs), Comprehensive Development Plans (CDPs) or Provincial 
Physical Framework and Development Plan (PPFDP). 
 
(V) Other Functions 
 
(a) Create when necessary, water resource subsidiaries, instrumentalities, and 
entities to engage in water transmission, water distribution, waste water 
treatment and management, and sanitation in accordance with existing 
relevant laws.  
 
(b) Enter into contracts, joint venture agreements or understanding, public-
private partnerships, and memorandum of agreements or understanding, 
either domestic or foreign, relating to investment and financing water-related 
projects, under such terms and conditions as the Department may deem proper 
and reasonable subject to existing laws.  
 
(c) Exercise such other powers and functions necessary or incidental to the 
effective administration and management of the country’s water resources. 


 
SECTION 9. Secretary of the Department of Water Resources. The authority and 
responsibility for the exercise of the mandate of the Department and for the 
discharge of its powers and functions shall be vested in the Secretary of the 
Department, hereinafter referred to as the Secretary, who shall: 
 
(a) Advise the President on the promulgation of executive or administrative 
orders, regulations, proclamations and other issuances relative to matters 
under the jurisdiction of the Department;  
(b) Establish the policies and standards for the operation of the Department 
pursuant to the President’s guidelines;  
(c) Promulgate rules and regulations necessary to carry out the objectives, 
policies, and functions of the Department;  
(d) Exercise supervision and control over all bureaus and offices under the 
Department;  
(e) Supervise all attached agencies and corporations in accordance with law;  
(f) Represent the Department in contracts, awards, and other similar agreements;  
(g) Delegate authority for the performance of any power or function, as defined 
herein to officials and employees under his direction as deemed appropriate;  
(h) Act as the Chairperson of the governing board of the attached agencies of the 
Department;  
(i) Designate and appoint officers and employees of the Department, excluding 
the Undersecretaries, Assistant Secretaries, and Regional and Assistant 
Regional Directors, in accordance with the civil service laws, rules and 
regulations; and  
(j) Perform such other duties and responsibilities as may be provided by law. 
 
SECTION 10. Office of the Secretary. The Office of the Secretary shall be composed 
of the Secretary, Undersecretary, Assistant Secretary, and the Secretary’s immediate 
staff. 
 
SECTION 11. Undersecretaries. The Secretary shall be assisted by not more than five 
Undersecretaries, 
who 
shall 
be 
appointed 
by 
the 
President 
upon 
the 
recommendation of the Secretary namely: Undersecretary for Resource Regulation 
and Governance, Undersecretary for Inland Waters and Water for Agriculture, 
Undersecretary for Resource Development, Undersecretary for Planning and Policy 
and Undersecretary for Missionary Water, Indigenous People, and Special Concerns. 
 
The Secretary is hereby authorized to delineate and assign the respective 
functional areas of responsibility of the Undersecretaries in accordance with the 
mandate and objectives of the Department: Provided, That no Undersecretary 
shall 
be 
assigned 
purely 
to administrative responsibilities. Within their 
respective functional areas of responsibility, the Undersecretaries shall: 
 
(a) Advise and assist the Secretary in the formulation and implementation of the 
policies, plans, programs and projects of the Department;  


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


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


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


 
(e) Support Services.  The Department shall create the following support services: 
 
(1) The Planning and Policy Service shall provide the Department with the 
capability to undertake water infrastructure development planning and 
programming, and shall exercise the following functions: 
 
i. Advise the Secretary on all matters relating to water resources 
planning;  
ii. Assist the Undersecretary for Planning and Policy on all matters 
related to the specific functions of the position;  
iii. Formulate strategies and priorities for water resources 
management and development consistent with 
national 
development objectives, and initiate or undertake relevant 
surveys for development planning;  
iv. Develop and regularly update a comprehensive and integrated 
National Water Resources Management Plan and ensure its 
integration into existing land use plans;  
v. Coordinate river-basin planning following the integrated water 
resources 
management 
framework 
and 
the 
river-basin 
approach;  
vi. Formulate 
or 
update 
existing 
River 
Basin 
Master 
or 
Comprehensive Plans which includes all aspects of water 
management and development such as water supply and 
sanitation, irrigation, flood control and stormwater or urban 
drainage, 
drought 
risk 
management, 
water 
resource 
development systems and other public water works projects, 
including phasing of implementation;  
vii. Identify, based on the river basin master plan, priority packages 
for water infrastructure development per river basin, including 
water 
supply, 
sanitation, 
irrigation, 
flood 
control 
and 
stormwater or urban drainage, drought risk management, water 
resource development systems and other public works projects, 
package project proposals for funding and prioritize project 
implementation and the allocation of funds and other resources 
and undertake or supervise and evaluate the conduct of 
feasibility studies and project preparation thereof;  
viii. Evaluate 
and 
appraise 
all 
regional 
and 
inter-regional 
infrastructure water development plans and programs as to their 
feasibility and consistency with approved strategies and 
medium and long -term plans;  
ix. Gather, analyze, and organize needed statistical data and 
information;  
x. Provide technical assistance related to its functions to the other 
services, bureaus and the regional offices as needed;  
xi. Conduct hydrological and hydraulic surveys and assessments of 


surface waters;  
xii. Develop general criteria and standards on project investigation, 
formulation, and planning;  
xiii. Develop guidelines and standards on social inclusion in water 
resources management and ensure policies, programs and plans 
are compliant with the gender and development framework of 
the government;  
xiv. Coordinate closely with PAGASA for rainfall and other climate 
data which shall be considered in the planning for water 
resources development and management and for various water 
infrastructure; and  
xv. Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective attainment of the 
abovementioned objectives. 
 
(2) The Decision Support System Service shall provide the Department with 
water resource management tools and computerized decision support 
system 
that incorporates a data management system relating to 
acquisition and database and model base in terms of physical design, 
planning and decision models including services related to networking, 
data management, and information 
and knowledge or learning 
management systems for administrative and non-technical support. It 
shall provide the Secretary timely reports on the status of various 
Department projects and activities. For this purpose, it shall exercise the 
following functions: 
 
(i) Provide the Secretary the necessary data and processed 
information to aid in policy and management decisions under 
the mandate of the Department;  
(ii) Publish available real-time raw water data as well as verified or 
validated water data in print or electronic form using latest 
internet technology;  
(iii) Conduct and publish in print and/or electronic form, standard 
data analysis such as basic statistical analysis, trend analysis, 
analysis of runs, and cluster analysis;  
(iv) Develop and continuously update water resource management, 
computerized decision support systems (DSS) that incorporate 
data management systems relating to acquisition and database, 
model base in terms of physical, design, planning and decision 
models, and user-friendly interface such as graphical and 
visualization tools. 
 
The DSS is composed of: 1) a measurement or data 
acquisition system; 2) information or database management 
system; 3) analytical and numerical models for design, planning, 
decision or evaluation purposes, and 4) a user- friendly interface 


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


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


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


services for the effective regulation of all water-related services and 
activities and shall exercise the following functions:  
(i) Advise the Secretary on all matters relating to resource 
regulations;  
(ii) Determine, grant, and regulate water rights for the appropriate, 
optimal and sustainable use of surface and ground water;  
(iii) Determine and evaluate waterworks and sewerage licenses, and 
submit evaluation results to the Water Regulatory Commission 
for the latter’s consideration in granting of licenses;  
(iv) Investigate violations of the water rights and the Water Code, 
and impose the appropriate sanctions in accordance with 
existing laws, rules and regulations as well as future rules and 
regulations which the Department shall promulgate;  
(v) Adjudicate water use conflicts; and  
(vi) Perform such other related functions and activities which are 
necessary for the effective regulation of water-related services. 
 
(7) The Internal Audit Service shall regularly conduct a comprehensive audit of 
various Department activities and shall exercise the following functions: 
 
(i) Advise the Secretary on all matters relating to management 
control and operations audit;  
(ii) Conduct a performance audit of the management and 
operations of the Department, its activities, the performance of 
all units, and determine the degree of compliance of all 
operating units with established objectives, policies, standards, 
methods 
and 
procedures, 
government 
regulations 
and 
contractual obligations of the Department;  
(iii) Review and appraise systems and procedures, organizational 
structure, assets management practices, accounting and other 
records, and performance standards such as budgets and 
standard costs of the Department Proper, bureaus and regional 
offices;  
(iv) Analyze and evaluate management deficiencies and recommend 
realistic courses of action; and  
(v) Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective performance of the 
abovementioned objectives. 
 
(8) The Public Affairs Service shall enhance relations with all stakeholders 
including the media, for the effective dissemination of information relating 
to water-related issues, including important announcements on policies 
and activities of the department that is of interest to the general public. It 
shall ensure that women, men, elderly, and people with disabilities shall be 
consulted, organized, and take active part in all aspects of water resources 
development and management activities. It shall also lead the planning 


and organizing of special events, and shall exercise the following 
functions: 
 
(i) Public Awareness 
a) Advise the Secretary on matters pertaining to public affairs; 
b) Develop 
and 
supervise 
the 
implementation 
of 
comprehensible communications programs on relevant 
policies, programs and plans of the Department;  
c) Produce and supervise the dissemination of communication 
materials in line with the priorities of the Department and 
national government public information programs;  
d) Conduct public opinion and attitude surveys to identify the 
interests and concerns of the stakeholders of the Department;  
e) Establish policies on the presentation and publication of the 
content of the communication materials for dissemination to 
print and broadcast media;  
f) Establish and maintain linkages with the tri-media and a 
presence in social media;  
g) Coordinate the conduct of interviews and news conferences;  
h) Make public announcements on matters relating to the work 
and activities of the Department through the print and 
broadcast media, either through press releases or live 
interviews;  
i) Coordinate with various Department units, concerned 
government agencies, tri-media and other stakeholders on 
matters related to the above- enumerated functions; and  
j) Coordinate with the appropriate national government 
agencies involved in public information affairs. 
 
(ii) Promote Participation 
a) Conduct public consultations and discussions;  
b) Develop and disseminate relevant and appropriate materials 
and programs for public information and education, as well 
as advocacy campaign;  
c) Conduct seminars and workshops involving the LGUs and 
the general public on current water issues and problems; and  
d) Conduct 
capability 
building 
seminars 
of 
various 
stakeholders to promote meaningful participation in the 
Department’s policy making, planning, development and 
implementation of various programs and projects. 
 
(iii) Special Events 
a) Coordinate the organization and promotion of special events 
and water exhibits;  
b) Act as the focal office for all water related events; and  
c) Perform such functions and activities, as may be mandated 


by law, which are necessary for the effective performance of 
the abovementioned objectives. 
 
(f) Bureaus. The Department shall create bureaus which shall each be headed by 
a Bureau Director. The Bureau Director shall be responsible for the efficient 
and effective discharge of the functions of the Bureau concerned. The Bureau 
Director shall be assisted by one (1) Assistant Director. 
 
(1) Bureau of Flood Control and Drainage shall plan and design flood control 
and drainage structures and facilities in accordance with technical 
standards, guidelines and manuals. For this purpose, it shall have the 
following duties and responsibilities: 
 
(i) Formulate policy, strategies and programs on flood risk 
management in the context of integrated flood management 
(IFM) which integrates water, land, coastal zone and multi-
hazard management. In integrating land use planning and water 
management, the Department shall harmonize and synthesize 
plans to enable the sharing of information between land-use 
planning and water management authorities. In this regard, a 
holistic approach shall be adopted by making the IFM a part of a 
wider risk or multi-hazard management system that includes 
earthquakes, landslides, fires, tsunami, and other calamities of 
the same gravity or nature;  
(ii) Integrate climate change and disaster risk reduction and 
management in policies and plans;  
(iii) Prepare master plans of flood management and drainage in 
river basins in coordination with the concerned water resources 
region and river basin organizations;  
(iv) Prepare master plans for urban drainage in cities and 
municipalities;  
(v) Prepare feasibility studies of recommended measures in the 
master plans;  
(vi) Plan and design structural measures for flood control and 
drainage;  
(vii) Implement and collaborate with concerned agencies on the 
formulation and adoption of non-structural measures for flood 
control and drainage;  
(viii) Patrol and investigate rivers, and monitor stream flows;  
(ix) Conduct post-disaster investigation and evaluation and damage 
assessment of flood infrastructures after extreme events;  
(x) Conduct 
research 
and 
development 
on 
water 
and 
sediment-related disasters;  
(xi) Develop design guidelines, criteria, and standards on flood 
control and drainage structures;  
(xii) Provide technical assistance to other agencies, LGUs, and other 


stakeholders;  
(xiii) Advise the Secretary on declaring flood control areas and 
recommend guidelines for flood plain management plans in 
these areas; and  
(xiv) Perform such related activities which are necessary for the 
effective performance of its functions. 
 
(2) Bureau of Water Quality Management shall supervise and exercise control 
over all aspects of water quality management to ensure the sustainability 
of the country’s water resources and the protection of the environment. It 
should take into account proper and integrated treatment of freshwater 
and wastewater within the whole process. For this purpose, the Bureau 
shall exercise the following functions: 
 
(i) Establish water quality guidelines for freshwater and coastal or 
marine waters as basis for classifying water bodies in the 
country. Specifically, develop water quality indices or composite 
metrics to measure the quality status and health of natural water 
bodies in relation to ecological integrity and function;  
(ii) Establish effluent standards for point discharges to receiving 
bodies of water;  
(iii) Establish internationally accepted procedures for sampling and 
analysis;  
(iv) Prepare an integrated water quality management framework;  
(v) Prepare the ten-year water quality management plans for each 
water quality management area as part of the River Basin Master 
Plans and in support of the NWRMP;  
(vi) Classify 
groundwater 
sources 
and 
prepare 
a 
national 
groundwater vulnerability map;  
(vii) Classify or reclassify all water bodies according to their 
beneficial usages using the established water quality guidelines 
established;  
(viii) Issue permits, clearances, and similar instruments pursuant to 
the Clean Water Act of 2004;  
(ix) Collect the wastewater discharge fees for all permittees;  
(x) Monitor the compliance of water discharge permittees with 
the effluent standards;  
(xi) Regularly monitor the water quality of major water bodies in the 
country and analyze the data to identify possible sources of 
pollution;  
(xii) Issue notices of violations and/or cease and desist orders for 
those found in violation;  
(xiii) File the needed cases against violators with the Water Pollution 
Adjudication Board (WPAB);  
(xiv) Serve as secretariat of the WPAB; and  
(xv) Perform such functions and activities, as may be mandated by 


law, which are necessary for the effective performance of the 
abovementioned objectives. 
 
(3) A Water Resources Regional Office (WRRO) shall be organized per 
water resources region and shall be responsible for implementing the 
mandates, powers and duties of the Department at the field level, except 
for policymaking which will be vested solely in the Department. The 
formulation of the master plan for the nearby river basins such as the 
Pasig-Marikina-Laguna Lake-Cavite, shall be the responsibility of the 
Department. Each WRRO shall perform the following duties and 
responsibilities: 
 
(i) Formulate or update and coordinate the river basin master plans 
for river basins within its jurisdictions ensuring consistency with 
the National Water Resources Management Framework Plan;  
(ii) Advocate and strongly support the creation and functioning of 
multi- stakeholder river basin organizations (RBOs) and serve as 
the secretariat of the said RBOs;  
(iii) Undertake and evaluate the planning, design, and work 
supervision functions 
of the Department for the water 
infrastructures within the region;  
(iv) Ensure the implementation of laws, policies, programs, rules 
and regulations regarding the abovementioned infrastructure as 
well as public and private physical structures;  
(v) Provide technical assistance related to the water-related 
functions of other agencies within the region especially the local 
government;  
(vi) Coordinate with other departments, agencies, institutions and 
organizations, especially local government units within the 
region in the planning and implementation of the river basin 
master plans;  
(vii) Conduct consultations with the local communities, take 
appropriate measures to ensure that the services of the 
Department are responsive, and recommend such appropriate 
actions as may be necessary; and  
(viii) Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective performance of the 
abovementioned objectives. 
 
The Department shall retain existing Project Management 
Offices as may be required, which shall be under the supervision and 
control of the appropriate Water Resources Regional Office unless 
otherwise determined by the Secretary for reasons of supra- regional 
scope, magnitude, and multi-functional coverage. 
 
Each Water Resources Regional Office shall be headed by a 


Water Resources Regional Director who shall be responsible for 
efficiently and effectively carrying out the duties and responsibilities of 
the Office. Towards this end, the Water Resources Regional Director 
shall exercise functional and administrative supervision over all units 
within the region and is authorized to commit resources and assign 
personnel to integrated regional water resources management, water 
supply and sanitation management, and flood control and flood risk 
management initiatives. The Water Resources Regional Director shall 
also perform such other related duties and responsibilities as may be 
assigned or delegated by the Secretary or as may be required by law. 
 
The Water Resources Regional Director shall be assisted by two 
(2) Assistant Water Resources Regional Office Directors who shall 
exercise supervision over (1) the planning, project design and 
evaluation function and (2) technical assistance to the River Basin 
Organizations within the water resources region. 
 
SECTION 14. Water Pollution Adjudication Board. There is hereby created a Water 
Pollution Adjudication Board under the Office of the Secretary. The Board shall be 
composed of the Secretary as Chairperson, two (2) Undersecretaries as may be 
designated by the Secretary, the Director of Water Quality Management Bureau, and 
three (3) other representatives from other stakeholders to be designated by the 
Secretary as members. 
 
The Board shall assume the powers and functions of the National Pollution 
Control Commission with respect to the adjudication of water pollution cases under 
Republic Act No. 3931 entitled, An Act Creating The National Water And Air 
Pollution Control Commission, Presidential Decree 984 entitled Providing For The 
Revision Of Republic Act No. 3931, Commonly Known as the Pollution Control Law, 
And For Other Purposes, particularly with respect to Section 6 letters e, f, g, j, k and 
Republic Act No. 9275. The Bureau of Water Quality Management shall serve as the 
Secretariat of the Board. These powers and functions may be delegated to the field 
officers of the Department in accordance with rules and regulations to be 
promulgated by the Board. 
 
 
CHAPTER III  
INTERDEPARTMENTAL RELATIONS AND  
INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
 
SECTION 15. Interface and Institutional Arrangements with Other Agencies.  
 
(a) The Department of Health (DOH) shall continue to have primary authority 
and responsibility for setting and enforcing drinking water quality standards. 
The Department shall coordinate with the DOH in this aspect, and shall ensure 
consistency of standards and targets, as well as the compliance of permittees 


with mandated standards;  
 
(b) The Department of Environment and Natural Resources (DENR) shall 
continue to have primary authority and responsibility for protecting the 
environment and managing the country’s watersheds;  
 
(c) The Department of Energy (DOE) and the National Power Corporation (NPC) 
shall continue to have primary authority and responsibility for establishing 
and operating hydropower plants, but shall ensure that hydropower plant 
development plans are consistent with the National Water Development and 
Management Plan;  
 
(d) The Department shall coordinate with the DA to ensure agricultural 
development that reduces long-term pollution for surface water and 
groundwater, and agricultural and industrial economic development that 
employs water efficiency, water recycling or reuse, and the appropriate 
treatment of wastewater;  
 
(e) The Department shall coordinate with the National Disaster Risk Reduction 
Management Council (NDRRMC) to ensure that its plans and designs for flood 
control, flood risk management and drought risk management are aligned 
with the objectives and plans of the Department;  
 
(f) The Department shall coordinate with Climate Change Commission (CCC), 
Philippine 
Atmospheric, 
Geophysical 
and 
Astronomical 
Services 
Administration (PAGASA), and National Mapping and Resource Information 
Authority (NAMRIA) for scientific studies, integrated surveys, mapping, 
charting, and decision support systems;  
 
(g) The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources;  
 
(h) The Department shall coordinate with the Philippine Reclamation Authority 
and economic zone authorities on water resources development and water 
requirements within reclamation areas and economic zones, respectively; and  
 
(i) The Department shall coordinate with relevant government agencies, 
including local government units (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. 
 
SECTION 16. National Water Sector Policy Board. The National Water Sector 
Policy Board (NWSPB) shall be created and shall be headed by the Secretary of the 


Department of Water Resources with the Secretary of the National Economic and 
Development Authority (NEDA) as the Vice-Chairperson, and the Secretaries of the 
DOH,  DILG,  DOE,  DA, Department of Social Welfare and Development;  
DPWH; Department of Budget and Management (DBM); Office of the President, 
and DENR, and National Commission on Indigenous Peoples as members. The 
Department shall provide personnel to serve as Secretariat to the Board. 
 
SECTION 17. Powers and Functions of the National Water Sector Policy Board 
(NWSPB). The NWSPB shall perform policymaking, coordination, integration, 
supervision, monitoring and evaluation functions, and shall have the following 
responsibilities: 
 
(a) Approve the NWRMP which shall serve as a principal guide to water 
management efforts in the country and shall be reviewed every five (5)-years 
interval, or as may be deemed necessary, in order to ensure its relevance to 
the times;  
(b) Provide overall policy direction and recommend policies on water resources 
requiring Presidential decision;  
(c) Advise the President on the status of water management and supply, 
recommend to the President the declaration of a state calamity in areas affected 
by water supply, and submit proposals to restore normalcy in the affected 
areas;  
(d) Ensure a multi-stakeholder participation in the development, updating, and 
sharing of information system as policy, planning and decision-making tools 
consistent with IWRM. 
 
SECTION 18. Transfer of Rights and Obligations. The Department shall, by virtue 
of this Act, be subrogated to all the rights and assume all the obligations of the 
government agencies and units whose powers and functions have been subsumed, 
absorbed, transferred or attached to the Department in accordance with the rules and 
regulations of the Commission on Audit, and the Civil Service Commission, and 
other applicable laws. The transfer of powers and functions as herein provided shall 
take effect within six (6) months of the effectivity of this Act. As such, all affected 
agencies, offices, units shall continue to function under their present mandates. 
 
 
CHAPTER IV 
WATER REGULATORY COMMISSION 
 
SECTION 19. Water Regulatory Commission. There is hereby created and 
established as an independent, quasi-judicial regulatory body to be known as the 
Water Regulatory Commission, hereinafter referred to as the Commission, which 
shall be organized within one hundred twenty (120) days after the effectivity of this 
Act. 
 
The Commission shall be placed under the administrative supervision of the 


Department as an attached agency. 
 
The Commission shall have a Board of Commissioners, and shall be vested 
with powers and functions, as conferred and set forth hereunder. 
 
SECTION 20. The Regulatory Units. The regulatory units of the Commission shall 
be composed of the central regulatory unit and the regional regulatory units. 
 
The economic regulatory units and functions of the MWSS, NWRB, LWUA, 
SBMA, PEZA, and TIEZA are hereby transferred to the Commission, and shall 
collectively comprise its central regulatory unit for water supply and sanitation 
services that: (a) provide services to more than one province; and (b) are owned, 
operated and/or maintained by special economic zones and Metro Manila 
concessionaires. 
 
The regional regulatory units shall be established by the Commission in 
accordance with this Act and the rules, regulations, guidelines, and standards that the 
Commission shall issue. 
 
SECTION 21. Powers and Functions of the Commission. The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether 
private or public, providing or intending to provide levels II & III water supply, 
including suppliers to subdivisions and other service providers, sewerage, and/or 
septage treatment and disposal services for domestic, residential, institutional, 
industrial, or commercial use. 
 
The Commission shall exercise the following powers and functions: 
 
(a) Issue and promulgate rules, regulations and guidelines as may be 
necessary to implement and enforce its powers and functions under this 
Act;  
(b) Promulgate and enforce just and reasonable technical standards, 
classifications and measurements of service;  
(c) Establish rules and regulations to monitor, avoid, and provide remedies 
for any market power abuse or anti-competitive or discriminatory act or 
behavior by or against any participant in the water supply and sanitation 
sector. Upon finding that a market participant has engaged in, or has 
fallen victim to such act or behavior, the Commission shall act to stop or 
redress the same. Such remedies may, without limitation, include the 
imposition of price controls, issuance of injunctions, requirement of 
divestment or disgorgement of excess profits, invalidation of contracts and 
imposition of fines and penalties pursuant to this Act.  
(d) Adopt and require that books, records, and accounts be kept and 
maintained in accordance with the prescribed uniform accounting system;  
(e) Fix and determine proper and adequate rates of depreciation of properties 
and equipment used in water supply and sanitation services;  


(f) Impose and collect annual levies determined as a percentage of gross 
revenue accruing in relation to the licensed activities, and reasonable fees 
and surcharges as may be necessary for achieving the purposes, powers 
and functions of the Commission;  
(g) Require the submission reports of finances and operations, verified under 
oaths by the owner or president and secretary of the board of the licensee;  
(h) Determine and require the monitoring and submission of such data, 
statistics and other information from the regulatory units and any or all 
licensees as may be necessary for the effective and efficient exercise of its 
duties, functions, powers and responsibilities;  
(i) Investigate, motu proprio or upon a written complaint, any matter 
concerning the operation of the service and issues on price manipulation 
and anti-competitive behavior;  
(j) Impose penalties and fines against any licensee or against its owners, 
directors, officers, agents or representatives for any violation of this Act or 
of the license, order, rule regulation or requirement issued by the 
Commission;  
(k) Require any licensee to pay the actual expenses incurred by the 
Commission in any investigation if it shall be found that a licensee 
violated any provision of this Act or of the license, order, rule regulation 
or requirement issued by the Commission;  
(l) Advise, apprise and coordinate with other relevant agencies of the national 
or local government on any matter relating to water supply and sanitation 
services;  
(m) Deputize agents, whether from the public or private sector, to assist 
in the 
performance of any of the powers and functions of the 
Commission;  
(n) Appoint an interim or temporary management committee upon appeal 
and after due hearing, to ensure continuity of service in case a licensee 
fails to meet conditions of the license and the concerned Regulatory Unit 
fails or refuses to appoint an interim management committee as provided 
in the following section;  
(o) Appoint, hire and maintain adequate staff and personnel, advisers, or 
consultants, with suitable qualifications and experience, as necessary;  
(p) Exercise original and exclusive jurisdiction over all cases contesting rates, 
fees, fines and penalties imposed by the regulatory units in the exercise of 
their powers, functions and responsibilities, as provided under this Act, 
and over all cases involving disputes between and among participants or 
stakeholders in the water supply and sanitation services; and  
(q) Such other incidental powers and functions as may be necessary to attain 
the objectives of this Act. 
 
SECTION 22. Powers and Functions of the Regulatory Units. The regulatory units 
of the Commission shall have the following powers and functions: 
 
(a) Issue licenses authorizing the operation of water supply and sanitation services 


in any specified area or areas within the Philippines;  
(b) Impose fines, charges and other penalties upon any provider and/or its 
officers and stockholders who shall fail or refuse to register or obtain a license 
prior to operation or commencement of business, as provided hereunder;  
(c) Review, determine, fix, and approve, consistent with the rules, guidelines, 
procedures and methodologies which the Commission shall provide, 
proposed water and sewerage and septage management tariffs, rates and 
charges that licensees may impose upon their consumers;  
(d) Appraise and value property and equipment used by licensees in providing 
water supply and sanitation services;  
(e) Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities;  
(f) Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu proprio price manipulation and anti- 
competitive behavior;  
(g) Investigate accidents directly or indirectly arising from or connected with the 
maintenance or operation of the service, and make such order or 
recommendation as the public interest may warrant;  
(h) Require the review and/or approval of contracts or agreements that may 
impact on the tariff and rates of service provision entered into by service 
providers upon petition or motu proprio where in its determination public 
interest so dictates;  
(i) Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment 
reports;  
(j) Impose and collect annual levies determined as a percentage of gross revenue 
accruing in relation to the licensed activities, and reasonable fees and 
surcharges as may be necessary for achieving the purposes, powers, and 
functions of the regulator;  
(k) Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof, as 
may be necessary or required by the Commission;  
(l) Amend, modify, suspend, or revoke any license issued by them, after due 
notice and hearing, on any of the following grounds: 
(1) when the facts and circumstances on the strength of which the 
license was issued have been materially misrepresented or have 
materially changed;  
(2) where the licensee has failed to meet or comply with terms, 
conditions, and performance targets, including but not limited to 
service expansion, that may have been set in the license;  
(3) where the licensee is found to be manifestly inefficient in the 
operation of or provision of water supply and sanitation services in 
its area; or  
(4) when the licensee thereof has violated or willfully refused to 
comply with any order, rule or regulation of the Commission or any 
provision of this Act; 


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


Commission and the appointment of all Members of the Commission, the 
Chairperson shall determine and establish the organizational structure and 
plantilla positions necessary to carry out the powers and functions of the 
Commission, including those of the central and provincial regulatory units 
subject to the review and approval of the DBM. 
 
The plantilla positions of the Commission shall be filled by regular 
appointments in accordance with Civil Service laws, rules, and regulations. 
Members of the Commission shall enjoy security of tenure and shall not be 
suspended or removed from office except for just cause as specified by law. 
 
(e) The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or 
common law, shall be prohibited from holding any interest whatsoever, either 
as investor, stockholder, officer or director, in any company or entity engaged 
in provision of water supply and distribution, septage management and 
sewerage services and must, therefore, divest through sale or legal disposition 
of any and all interests in the water sector upon assumption to office. 
 
SECTION 24. Secretariat of the Commission. The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
including the following: 
 
(a) Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions;  
(b) Coordinate with Regulatory Units to ensure proper implementation of the 
rules, regulations and guidelines promulgated by the Commission;  
(c) Monitor and assess activities of the Regulatory Units vis-à-vis their respective 
annual performance plans and targets;  
(d) Maintain a database on the water supply and sanitation subsector; and  
(e) Coordinate with other relevant agencies of the national or local government 
on any matter relating to water supply and sanitation. 
 
SECTION 25. Executive Director. The Commission shall appoint an Executive 
Director who shall head the Commission Secretariat, keep and maintain the official 
records of the Commission, render a report on the proceedings of the Commission, 
and administer oaths in all matters falling within the jurisdiction of the Commission. 
 
The Executive Director shall be responsible for the effective implementation 
of the policies, plans, programs, rules, regulations, and directives of the Commission; 
coordinate and supervise the activities of the different operating units under the 
Commission; and perform such functions as may be assigned by the Chairperson 
and/or other members of the Commission. 
 
SECTION 26. Compensation and Other Emoluments. The compensation of the 
members of the Commission and its staff shall conform to provisions of Republic Act 


No. 6758 as amended, otherwise known as the Compensation and Position 
Classification Act of 1989. 
 
 
CHAPTER V 
REGISTRATION AND LICENSING 
 
SECTION 27. Registration and Licensing of All Water Supply and Sanitation 
Services. All water supply and sanitation service providers, including bulk water 
suppliers and those providing services to subdivisions and other service providers, 
shall register with the Commission and, subject to such rules, guidelines, procedures 
and other issuances of the Commission, obtain a license to operate from the 
appropriate regulatory units. 
 
The Commission shall ensure that the grant and revocation of licenses are 
carried out fairly, transparently, and without discrimination. Issuances of the 
Commission shall specify, among others, the qualifications, requirements, and 
procedure for the grant and revocation of licenses including the standards and 
performance targets that shall continuously be complied with to keep the licenses 
valid. 
 
Unless otherwise provided in this Act or by the Commission, no public water 
supply and sanitation service provider shall commence or conduct the business of 
providing water supply and sanitation services without first obtaining a license. 
 
Concession agreements and other contracts for water supply provision and 
water sanitation and treatment services currently existing shall remain valid and 
enforceable unless otherwise terminated, after due notice and hearing for reasons 
provided in the existing terms and conditions under the concession or service 
agreement or contract, or when invalidated by the Commission, after due notice and 
hearing, where national security, national emergency or public interest so dictates. 
 
SECTION 28. Conditions of License. The Commission or the concerned regulatory 
unit, may impose such conditions on the licensee as it may deem necessary, such as: 
(a) Tariffs, rates and charges that may be imposed from its customers or 
consumers.  
(b) Term fixing the duration of the privilege.  
(c) Grounds for modification, suspension or cancellation of the license.  
(d) Minimum technical performance and service level standards.  
(e) Expansion targets and service level improvements over time.  
(f) Restrictions or conditions for transferability of the business or controlling 
interest in the business.  
(g) Reportorial requirements and obligations of the grantee.  
(h) Submission to annual performance audit by the Commission or its duly 
authorized representative(s). 
 


The Commission shall specify the requirements and procedure for existing 
holders of a Certificate of Public Convenience (CPC), Certificates of Public 
Convenience and Necessity (CPCN) issued by NWRB, or Certificate of Conformance 
(CoC) issued by LWUA, to convert their existing certificates into licenses to operate 
in accordance with Section 27 herein. 
 
All existing providers of water supply and sanitation services without a legal 
and valid Certificate of Public Convenience, Certificate of Public Convenience and 
Necessity, or Certificate of Conformance shall register with the Commission and 
apply for a license within six (6) months from the effectivity of this Act. 
 
SECTION 29. Rights and Duties of Licensees.  
 
(a) Any person granted a license under this Act shall have the obligation to 
ensure that licensed activities are conducted to further public interest and, in 
particular:  
(1) Foster the maintenance and development of efficient, coordinated, 
and viable operation of their licensed activities;  
(2) Ensure that their water supply and sanitation services are provided 
in a diligent, conscientious and workman like manner, in 
accordance with applicable laws rules and regulations issued by the 
Commission and the generally accepted standards and practices of 
the water supply and sanitation industry; and  
(3) Comply with drinking water quality requirements and standards 
that may be established by the Commission. 
 
(b) Any person granted a license under this Act shall, to the extent allowed by 
law and specified in the license, has the right to acquire or lease land, lay or 
repair water or sanitation main lines and other relevant facilities in public 
ways to fulfill the terms and conditions under the license.  
 
(c) Subject to any condition or limitation laid down in the license, a licensee may 
discontinue water supply and sanitation services to a customer if such 
customer defaults in the payment of fees due to the licensee for the water 
supplied or sanitation services provided, or for acts of pilferage pursuant to 
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the 
Water Crisis Act of 1995.  
 
(d) Any license issued under this Act shall contain provisions designed to ensure 
that licensees: 
(1) Publish the Tariff and other charges approved by and the terms and 
conditions imposed by the Commission for the provision of water 
supply and sanitation services;  
(2) Prepare, within three (3) months from the issuance of a license, in 
consultation with its customers, a Customer Service Code 
specifying the manner and procedure for: (a) metering, billing, and 


collection of the licensee’s approved tariff and other charges, (b) 
disconnection or suspension of service in case of non-payment of 
tariffs and/or other charges, or acts of pilferage, and (c) 
recommendation and recovery of arrears in tariffs and other 
charges;  
(3) Maintain financial accounts in accordance with the manner and 
procedure specified in the license and as may be required by the 
Commission; and  
(4) Maintain and upon request by anyone during regular office hours, 
promptly make available for scrutiny and inspection such data, 
statistics and other information, as may be required by the 
Commission. 
 
SECTION 30. Setting Tariffs, Rates, and Other Charges. Regulatory units shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure 
economic viability and a fair return on investments. 
 
Tariffs, rates and charges shall be based on and consistent with a rate-setting 
methodology that the Commission shall, after due consultation, define and publish, 
taking into account the following, among others: 
 
(a) Reasonable and prudent capital and recurrent costs of providing the service 
including a reasonable rate of return on capital;  
(b) Efficiency of the service;  
(c) Incentives for enhancement of efficiency;  
(d) Willingness to pay of the customers/consumers;  
(e) Equity considerations; and  
(f) Administrative simplicity. 
 
Tariffs, rates, and charges set by the regulatory units shall be presumed valid 
and reasonable unless a protest or contest is filed with the Commission. 
 
SECTION 31. Direct Access. Fifty-one (51) percent of the registered water 
consumers in a municipality, city or province may petition for direct access to water 
from any water service provider subject to concurrence by the service provider and 
approval by the Commission. The Commission shall promulgate rules and 
procedures for this mode of service. 
 
SECTION 32. Innovative Schemes to Improve Efficiency and Management of 
Systems. The Commission shall promote innovative schemes such as the 
consolidation or integration of water supply and sanitation services, or providers in 
the same service area, where it shall result in improved efficiency, service expansion 
and lower costs. 
 
To this end, the Commission shall establish and issue such rules and 
guidelines as may be necessary to: (a) create incentives to encourage efficiency and 


service expansion; (b) establish the standards and targets that service providers are 
required to meet; and (c) define the fines and penalties that shall be imposed for 
failure to meet such standards and targets. 
 
 
CHAPTER VI 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
 
SECTION 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. 
 
SECTION 34. Orders and Decisions of the Commission. Any order, resolution, or 
decision 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. 
 
SECTION 35. Appeals Procedure and Prohibition Against Injunction.  
 
(a) The orders, rulings, and decisions of the Commission are final and 
executory unless appealed to the Court of Appeals within fifteen (15) days 
from receipt of notice of such order, ruling or decision: Provided, That 
orders, rulings, and decisions of the Commission approving tariffs, shall be 
immediately executory and may be suspended only upon appeal and filing of 
a bond, in an amount to be fixed by the Commission, to answer for damages 
occasioned by the suspension or stay of execution of such orders, rulings, and 
decisions. 
 
(b) No injunction may be issued by any court or administrative agency to restrain 
any proceeding before, or the implementation or execution of any order, 
ruling, or decision of the Commission, except on the basis of a question of law 
brought before the Supreme Court on certiorari. 
 
(c) Any act or decision of the Commission shall not be invalidated merely 
because of a defect or irregularity in, or in connection with, the appointment 
or vacancy in the Office of the Chairperson or any other member of the 
Commission. 


 
 
CHAPTER VII  
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
 
SEC. 36. Interface with Other Sector Regulators.  
 
(a) The DENR shall continue to exercise primary jurisdiction over programs 
aimed at protecting the environment and the quality of water sources from 
waste and pollution, and shall promulgate rules, regulations, and standards in 
this regard. The Department of Health (DOH) shall continue to exercise 
primary jurisdiction over the determination and enforcement of standards for 
quality drinking water and sanitation. 
 
(b) The Commission shall coordinate with the: 
(1) DOH to ensure that the standards and targets for quality drinking 
water and sanitation are consistently complied with;  
(2) LGUs for development projects relating to water supply and sanitation; and  
(3) DPWH for flood control and harnessing and impounding of water. 
 
SECTION 37. Transfer of Rights and Obligations. The Commission shall, by virtue 
of this Act, be subrogated to all the rights, and assume all the obligations, of the 
Water Utilities Division of the NWRB, the regulatory offices of MWSS and LWUA, 
the regulatory units of all special economic zones, and all other government agencies 
and units whose powers and functions have been transferred to the Commission. 
 
The transfer of powers and functions to the Department of the concerned 
agencies as herein provided for, shall be deemed completed within six (6) months 
after the effectivity of this Act. The transfer of powers and functions shall include all 
applicable funds, personnel, records, property and equipment, as may be necessary. 
The same shall apply to agencies which have been attached to the Department by 
virtue of this Act. 
 
All agencies transferred, subsumed and attached to the Department, shall 
continue to function under their present mandates until the six-month transition 
period mandated under this Act shall have lapsed. The heads of the affected 
agencies shall continue to serve until replaced. 
 
All rights and obligations of the affected agencies are hereby transferred to 
and assumed by the Commission, and shall be acted upon in accordance with the 
rules and regulations of the Commission on Audit and other pertinent laws, rules, 
and regulations. 
 
SECTION 38. Absorption or Separation from Service of Employees of the 
Subrogated Agencies. The current employees of the Water Utilities Division of the 
NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of all 


special economic zones, and all other government agencies and units whose powers 
and functions have been transferred to the Commission shall enjoy security of 
tenure, and shall be absorbed by the Department, in accordance with their staffing 
pattern and the selection process as prescribed under Republic Act No. 6656 or the 
Government Reorganization Law. 
 
Employees opting to be separated from the service as a consequence of the 
consolidation, and reconstitution under the provisions of this Act shall, within one 
(1) month from their separation or phase out from the service, receive separation 
benefits in accordance with existing laws, and those who are qualified to retire shall 
be allowed to retire and be entitled to all benefits under existing retirement laws. 
 
SECTION 39. Water Trust Fund. There is hereby created a Water Trust Fund in the 
Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees, 
registration fees, supervision and regulation enforcement fees, filing fees, testing 
fees, and other service income from the use of water resources shall be remitted to 
the Water Trust Fund. The trust fund shall be accounted separately from the 
government’s general revenues and shall be automatically appropriated to the 
Department. Proceeds from the trust fund shall be utilized for water development, 
water sanitation and wastewater treatment and management, and water 
sustainability programs and projects authorized under this Act: Provided, That a 
maximum of ten percent (10%) of the total income generated from raw water 
extraction shall be given as share of the concerned local government unit or 
indigenous peoples (IP) community who own the specific areas or land where the raw 
water was sourced. 
 
 
CHAPTER VIII  
FINAL PROVISIONS 
 
SECTION 40. Applicability of Ease of Doing Business Law. The prescribed 
processing time provided under Section 9.b of Republic Act No. 11032, otherwise 
known as the Ease of Doing Business and Efficient Government Service Delivery Act 
of 2018, shall be applicable to all agencies and LGUs covered under this Act 
particularly on accessing government services. 
 
SECTION 41. Transitory Provisions. 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. 
 
SECTION 42. Appropriations. The amount necessary to cover the initial 
implementation of this Act shall be charged against the currents year’s 
appropriations of the agencies and offices transferred and subsumed by the 


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


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


proclamations, rules and regulations, or parts thereof which are inconsistent with the 
provisions of this Act are hereby repealed or amended accordingly. 
 
SECTION 46. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,