TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHIUPPINES ) 
First Regular Session 
)
S. No.
SENATE
225
25 JiJL -7 P1 ••36
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR 
MANDATE, POWERS AND FUNCTIONS, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines has abundant water resources, including 421 rivers, and 221 
lakes. With an average rainfall of 2400 millimeters, the country receives 146 billion 
cubic meters of freshwater each year. Despite this, frequent water shortages persist 
due to rainfall variations, geographic disparities, increasing water demand, and 
recurring El Nino patterns."1
Experts predict severe water shortages by 2025 in the Philippines due to the 
impact of population growth, urbanization, and industrialization on water quantity
1 Senate Economic Planning Office, "The State of Water At a Glance", Published on August 2023. Available at 
httns://weh.sftnate.Qov.Dh/Dublications/SEPO/State%20of%20Water%20AAG Auqu$t%2020?3iBdf- Accessed on July 1, 2025.


and quality."2 This is already a pressing issue, with approximately 11 million Filipinos 
lacking access to clean, safe water as of 2023.3
Agriculture in the Philippines consumes 80% of the total water demand, 
primarily for irrigation, despite being prioritized lower than domestic use. The 
projected rice demand of 16 million tons by 2025 (a 60% increase from current 
supply) cannot be met with existing irrigation conditions, and efforts to expand 
irrigated area are hindered by water scarcity.4
This fundamental problem on water shortage stems from fragmented 
governance, inefficient resource management, widespread pollution, the impacts of 
climate change, and rapid urbanization. Numerous government agencies have 
overlapping mandates over various aspects of water, leading to a lack of coherent 
policy, uncoordinated efforts, insufficient accountability, inefficiencies, and 
underinvestment in crucial infrastructure.
Proactive measures and legislative action on the effective and efficient 
management of water resources are urgently needed for a reliable and sustained 
water supply. This bill proposes establishing a National Water Resource Management 
framework and creating a Department of Water Resources (DWR) to consolidate 
existing agency functions for a unified approach, and an independent Water 
Regulatory Commission (Commission) to regulate water service providers, set tariffs, 
and enforce compliance. By centralizing authority, this legislation aims to ensure 
universal access to safe and affordable water, promote sustainable resource 
utilization, mitigate water-related risks, and secure the nation's water for future 
generations.
2 Philippine Star, "Huling Patak tackles looming water crisis". Published on August 27, 2011, Available at 
https://www.Dhilstar.com/entertainment/2011/08/27/720667/hulina-patak-tackles-IOOminq-water-ctisi5. Accessed on July 1, 
2025.
3 Addressing Water insecurity in Southeast /Vsia: Causes and Solutions. Published on January 20, 2024. Available at 
https://aenesiswatertech.com/bloQ-Dost/addressinQ-water-insecuritv-in-southeast-asia-causes-and-SplutlQD5Z. Accessed on July 
2, 2025.
4 
Dayrit, Hector. “The Philippines: Formulation of a National Water Vision. Available at 
httns://www.fao.ora/4/ab776e/ab776e03.htm. Accessed on July 2, 2025.


In view of the foregoing, the approval of this bill is earnestly sought.
FRANCIS N. f^NGlLINAN
Senator


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
JiJL -7 P1 37
SENATE 
S. No.
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATE, 
POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
Be it enacted by die Senate and the House of Representatives of the Philippines 
in Congress assembled:
1 
CHAPTER I
2 
GENERAL PROVISIONS
3 
Section 1. Short Title- This Act shall be known as the "National Water
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Resources Management Act'.
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Sec. 2. Declaration of Policy-
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(a) The State recognizes that water is fundamental to individual life, health,
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and dignity, and that every person has a right to access safe and clean
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water for personal and domestic use;
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(b) The State affirms that the right of all Filipinos to safe and clean drinking
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water and sanitation is essential to the full enjoyment of life and all human
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rights and hence, the attainment of a nationwide water supply, sanitation,
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and sewerage services at reasonable rates must be pursued in an orderly,
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rational, efficient, and dynamic manner;
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(c) The State emphasizes that water is a public good subject to diverse use in
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economic, agricultural, and industrial activities, and is thus a scarce


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


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which reflect the functions of the natural environment as an absorptive sink
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for residuals; (ii) productive services which reflect the economic functions of
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providing natural resource inputs and space for production and consumption,
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and (iii) consumer or consumption services which provide for physiological
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as well as recreational and related needs of human beings;
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(c) Flood Control refers to methods, acts, and protocols to be observed in order
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to prevent and reduce the detrimental and catastrophic effects of flood waters
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which include sediment-laden or turbid flows, and hyper-concentrated flows
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or debris flows;
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(d) Flood Risk Management (FRM) refers to such acts of defining and determining
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the appropriate methods, acts and protocols aimed at preventing and reducing
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the risk of incurring loss of both life and property due to flood waters. Flood
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risk management consists of a cycle of prevention, mitigation, adaptation,
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preparedness, and early warning, and, response and recovery. The elements
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of FRM include: integrating land-use planning and coastal zone management
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into water management; adopting a holistic approach so that FRM is part of
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wider risk or multi-hazard management of earthquakes, landslides, and storm
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surges; managing risk and uncertainty as a whole so it is not only hydrological
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uncertainties but also social, economic, and political uncertainties on account
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of human behavior and cultural dimensions of FRM;
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(e) Infrastructure and public works refer only to wholly or primarily water-related
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projects and shall not incorporate projects that do not otherwise fall within
23 
the purview of the objectives, powers, and duties of the Department of Water
24 
Resources created under this Act;
25 
(f) Integrated Water Resource Management (IWRM) refers to a systematic,
26 
collaborative and multi-stakeholder process which promotes the coordinated
27 
development and management of water, land, and related resources within
28 
geophysical boundaries in order to maximize the resultant economic and social
29 
welfare in an equitable manner and without compromising the sustainability
30 
of vital ecosystems;


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(g) License refers to the Water Supply or Sanitation Services Operating License 
that the Water Regulatory Commission is authorized to grant and issue to 6 
Service Providers;
(h) Licensee refers to the Service Provider to whom a License is granted or issued 
by the Water Regulatory Commission;
(i) Missionary Water refers to water supply or services to areas that have no 
existing safe water supply and services due to geographic limitation or 
absence of economic and market viability;
(j) Nationai Water Resources Management Pian (NWRMP) refers to a policy 
document that incorporates a framework to guide the development and 
management of all water resources in the Philippines, the general strategies 
and work to be pursued to ensure the sustainability of the resource and work 
towards the water security; and provides top-level direction on the utilization 
of existing water resources in line with national development plans, policies, 
and programs in accordance with the IWRM framework. The NWRMP shall 
also include a water infrastructure development program for all waters of the 
country as well as provide general guidance on how this shall be supported 
within an integrated financing framework that can draw on public, private and 
international development funding sources;
(k) Reguiatory Units refer to the regulatory offices of the Water Regulatory 
Commission established under this Act;
(l) 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;
(m) River Basin Organization (RBO) refers to multi-stakeholder organizations which 
plan, coordinate, and monitor activities within a river basin cluster;
(n) Sanitation refers to the provision of facilities and services for the safe 
management of septage and sewage, from the collection to containment, and 
storage and treatment onsite or conveyance, treatment, and eventual safe 
end use or disposal, and includes the safe management of solid waste and 
animal waste;
(o) Septage refers to the liquid and solid material pumped from a septic tank, 
cesspool, or other primary treatment source.


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(p) Septage Management refers to the provision of proper collection, treatment,
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and disposal of septage;
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(q) Service Area refers to the area covered by the water distribution system,
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sewerage, and septage management services;
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(r) Service Provider- refers to any entity, natural or juridical, whether private or
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public, providing or intending to provide water supply, including bulk water
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suppliers, sewerage, septage treatment, and disposal services for domestic,
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residential, institutional, industrial, or commercial use;
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(s) Sewage refers to water-borne human or animal wastes, excluding oil or oil
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waste, removed from residences, buildings, institutions, and industrial and
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commercial establishments together with such groundwater, surface water
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and storm water as may be present including such waste from vessels,
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offshore structures, other receptacles intended to receive or retain waste or
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other places or the combination thereof;
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(t) Sewerage refers to any system or network of sanitary pipelines, ditches,
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channels or conduits including pumping stations, lift stations and force
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mains, service connections including other infrastructure, devices or
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appliances appurtenant thereto, which includes the collection, transport,
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pumping and treatment of sewage to a point of disposal;
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(u) Sewers refer to pipes or such other works or structures which are built and
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constructed to carry, transport, and dispose sewage;
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(v) Tari/fs refer to such amounts which may be charged by licensees for their
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water supply, sewerage, or sanitation services based on principles,
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standards, and guidelines established by the Water Regulatory Commission;
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(w) Water Demand Management refers to any method whether technical,
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economic, administrative, financial, or social that will accomplish one or more
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of the following:
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(i) Reduce the quantity or quality of water required to accomplish a specific
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task;
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(ii) Adjust the nature of the task or the way it is undertaken so that it can be
31 
accomplished with less water or with lower quality water;


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(iii) Reduce the loss in quantity or quality of water as it flows from source,
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through use, to disposal;
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(iv) Shift the timing of use from peak to off-peak periods; and
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(v) Increase the ability of the water system to continue to serve society during
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times when water is in short supply.
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(x) Water District refers to government-owned and controlled corporations
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organized under Presidential Decree No. 198, otherwise known as the
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"Provincial Water Utilities Act of 1973", as amended, created primarily to
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acquire, install, operate, maintain and improve water suppiy and distribution
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systems for domestic, industrial, and municipal uses of residents and to
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provide, maintain, and operate wastewater collection, treatment and disposal
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facilities within the boundaries of the district;
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(y) Waterpoiiution refers to any aiteration of the physical, chemical, biological, or
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radiological properties of a body of water resulting in the impairment of its
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purity or quality;
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(z) Water Resource refers to water under the ground or groundwater; water
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above the ground such as surface water, run-offs, floods, stormwater and
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urban drainage; treated wastewater, water in the atmosphere or rain water;
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and the waters of the sea within the territorial jurisdiction of the Philippines;
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(aa) Water resource aiiocation refers to the process of sharing the limited water
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resources between competing users. This consists of determining water
22 
availability and determining how the water should be shared among
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competing users. For the purpose of this Act, resource aiiocation shall also
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mean water resource allocation;
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(bb) Water Resources Regions refer to the contiguous clusters of river basins
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created under this Act for administrative purposes under the Department of
27 
Water Resources;
28 
(cc) Water Resources Regionai Offices (WRROs) refer to the field offices of the
29 
Department of Water Resources, as created under this Act, which are to be
30 
established in accordance with the identified water resources regions in the
31 
country;


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(dd) Water service cooperative refer to cooperatives organized primarily to own,
2 
operate, and manage water systems for the provision and distribution of
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potable water for the members and their households;
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(ee) Water Service Providers (WSPs) refer to the water districts, any Local
5 
Government Unit (LGU)-run water utility, Barangay Waterworks and
6 
Sanitation Association, Rural Waterworks and Sanitation Association, water
7 
service cooperatives, and private sector entities that provide water supply
8 
services to any given area;
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(ff) Water suppiy service refers to any activity comprising developed water
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sources, communal faucet system or stand posts, waterworks system or
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individual house connections, which include bulk suppliers, suppliers to
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subdivisions, or other similar water service providers.
13 
CHAPTER II
14 
DEPARTMENT OF WATER RESOURCES
15 
Sec. 4. Estabiishmentofthe Department of Water Resources-There is hereby
16 
established the Department of Water Resources, hereafter referred to as the
17 
Department.
18 
Sec. 5. Mandate and Objectives-The Department shall be the primary policy,
19 
planning, coordinating, implementing, monitoring, and administrative entity of the
20 
Executive Branch of the government responsible for the comprehensive, sustainable,
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climate-resilient, and integrated development and management of the water
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resources of the Philippines, and their optimal allocation and use for domestic and
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municipal water supply, sanitation, irrigation, hydropower, industry, navigation, flood
24 
management, and recreation, and water utilization aspects of fisheries or aquaculture.
25 
The Department shall also be the primary agency responsible for the planning
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and policy formulation towards the attainment of universal access to safe, adequate,
27 
affordable, and sustainable water supply, and improved sewerage and sanitation
28 
services for all Filipinos.
29 
Sec. 6. Powers and Functions- The Department shall exercise the following
30 
powers and functions:
31 
I. Policy Making And Planning


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(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 agencies and stakeholders to meet the goals and objectives 
for water resource sustainability and protection, water allocation and 
management, water supply, sanitation, and sewerage, water quality, 
irrigation, hydropower, flood control, stormwater utilization, and 
urban drainage. Such policies shall, among other guidelines, integrate 
the relevant issues of water, sewerage, sanitation, food security, 
energy, environment, flood control, and climate change;
(c) 
Formulate long-term policies to balance the sustainability and optimal 
multiple use of water resources, define the hydrologic boundaries of 
basins of the existing water supply sources, and develop or update 
existing River Basin Master or Comprehensive Plans which includes all 
aspects of water management and development such as water supply, 
sewerage, and sanitation, irrigation, flood control and storm water or 
urban drainage, drought risk management, water resource 
development systems and other public water works projects, including 
phasing of impiementation;
(d) 
Harmonize all relevant national river basin policies and serve as the 
national policy coordination office for LGUs and relevant stakeholders 
in the development and sustainability of river and catchment basins;
(e) 
Identify, based on the river basin master plans, priority projects for 
water infrastructure development per river basin, including water 
supply, sanitation, irrigation, hydropower, flood control and 
stormwater or urban drainage, drought risk management, water 
resource development systems and other public works projects;


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


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Strategic development plans and actions, and recommend to the NEDA 
Board the adoption of general policies and guidelines for water resources 
development;
(l) Strengthen and coordinate with relevant agencies on policy making and 
planning for flood management, integrated with stormwater or urban 
drainage and appropriate retention or retarding basins in order to harvest 
and reuse water, and to plan against, prevent, and minimize the 
detrimental and catastrophic effects of flooding;
(m) Develop and implement, in coordination with other relevant agencies and 
stakeholders, effective codes, standards, benchmarks, and reasonable 
guidelines to ensure the safety of all public and private water structures 
in the country, and assure efficiency and proper quality in the construction 
of water, sanitation, irrigation, hydropower, flood control and drainage 
infrastructure; and ensure that the planning and design of water 
infrastructure considers the highest efficiency and most appropriate 
technology and quality;
(n) Ensure that gender equality, social inclusion, environmental protection, 
climate resiliency and disaster risk reduction, and indigenous knowledge 
systems and practices are integrated into any water resources 
management planning, policy making, and the design and construction of 
water infrastructure;
(o) Act as the lead agency in ensuring the effective implementation of all laws 
and implementing rules and regulations on water resources;
(p) Review all water laws and implementing rules and regulations and propose 
amendments thereof to Congress, and advise any agency on the 
implications of government actions, policies, and programs to water 
supply, sewerage, and sanitation;
(q) Authorize its representatives or any deputized agent to enter any property 
of public dominion or any private land, building or enclave, whether 
inhabited or not, or authorize a representative thereof, for the purpose of 
conducting hydrological surveys and investigations, including assessing
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and evaluating the conditions of water facilities installed, and determining 
compliance with water laws and standards; and
(r) Issue and promote rules and regulations as may be necessary to 
implement and enforce its powers and functions under this Act;
II. Data Collection and Evidence Gathering
(a) Estabiish, operate, and maintain a centralized water resources data center 
necessary for the scientific survey and appraisal of surface and ground 
water potentials of the country and determine the annual renewable water 
available per available water resources region;
(b) Effect inter-sectoral, inter-agency and inter-departmental coordination on 
all aspects of data gathering and data sharing for water resources 
development planning and compel submissions of statistics and data on 
water management with the aim of operationalizing the IWRM framework;
(c) 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 in coordination with the river basin initiatives of 
relevant government entities;
(d) Collect, regularly update, monitor, and analyze water resources data 
including climatology, hydrologic, and other water-related data;
(e) Establish, in coordination with agencies that generate water-related data, 
the guidelines, standards, methodologies, and protocols for data collection 
that will be officially recognized by the Department, and institute 
mechanisms for coordination with other agencies as regards their 
submission and certification of submitted water-related data to the 
Department;
(f) Conduct continuing hydrological and hydrometeorological surveys and 
studies of the country's renewable water supply, and establish, operate, 
and maintain observation station networks;
(g) Conduct and promote special studies and research on water economics 
and other aspects of water resources development and management as 
may be needed to support the policy and pian proposals of the
11


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Department, such as, but not limited to, impacts of climate change,
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weather modification, flood monitoring and modeling, environmental
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quality, and desalination;
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(h) Establish, operate, and maintain observation station networks and a
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centralized water resources data center for the scientific survey and
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appraisal of surface and groundwater potentials of the country, and
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determine the annual renewable water available per water resources
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region;
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(i) Develop and continuously update a computerized decision support system
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that incorporates data management system relating to acquisition and
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database, model base in terms of physical design, planning and decision
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models, and user-friendly interface concerning graphical and visualization
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tools; and
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(j) Promote Philippine participation in information sharing and education on
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best practices in support of international efforts to achieve universal
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access to safe water and improved sanitation and the integration of water,
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energy, food security and environment.
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III. Water Resource Management and Allocation
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(a) Formulate, issue, and enforce rules and regulations on the following:
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(i) Abstraction, diversion, and development of the country's water
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resources, taking into consideration their equitable distribution among
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competing demands and determine the standards of beneficial and
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priority uses of water in times of crises and national emergencies;
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(ii) Equitable and optimal allocation of the country's water resources for
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domestic and municipal water supply, irrigation, sanitation, irrigation,
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hydropower, navigation, fisheries, livestock raising, industrial,
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recreational, and other purposes;
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(iii) Determination and granting of water rights, including adjudication in
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cases of conflicting uses, amending for this purpose. Act No. 2152,
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otherwise known as 'The Irrigation Act", and other laws relating to
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the appropriation and utilization of surface and groundwater;
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Provided, That the grant and adjudication of conflicting water rights 
shall be exercised by the Water Resources Adjudication Board;
(iv) Such other coherent water protocols as may be necessary, including 
the operating rules of all existing and future water infrastructure, legal 
and technical mechanisms for intrasectoral transfers;
(v) Guidelines for the determination of costs and fees of all water rights, 
tariffs, permits, and licenses through a science-based method which 
will accurately reflect the current or future projected state of the water 
resource to be allocated: Provided, That the actual methodology for 
setting rates and tariffs shall be the exclusive power of the Water 
Regulatory Commission;
(vi) Methods and standards for basic data collection and project 
identification, formulation and planning, and appropriate sanctions to 
be imposed for non-compliance;
(vii) Guidelines in the grant of areas for missionary water, such as, but not 
limited to, corresponding non-tax incentives and possible sources of 
funding and revenues;
(viii) Treatment and utilization, in coordination with relevant agencies, of 
flood control, rain-water run-off, stormwater, and urban drainage;
(b) Exercise original jurisdiction over all disputes relating to appropriation, 
utilization, exploitation, development, control, conservation and protection 
of all water resources, the adjudication of which shall be enforced by the 
Water Resources Adjudication Board;
(c) Impose fees or charges, as may be deemed necessary for water resources 
conservation and protection, in accordance with applicable rules and 
regulations on the imposition and increase of fees or charges, such as, but 
not limited to:
(i) Raw water price, which shall take into account, among others, the 
scarcity of water; and
(ii) Appropriate structures for payment of environmental services;
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(d) Raise public awareness through information, education, and
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communications programs, and build capacities for informed participation
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in water resources management at the national and river-basin level.
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IV. Administration and Management
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(a) Develop guidelines, including rules of partnership between and among the
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Department, field offices of national government agencies, LCDs, and other
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stakeholders, in water resource management, facilitate the establishment
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of multi-stakeholder river basin organizations (RBOs) per river basin, and
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strengthen and support existing RBOs and monitor their activities;
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(b) Develop materials for capacity building and training on RBO development
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and conduct training and workshops for prospective RBOs;
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(c) Provide technical assistance to water users including farmers, communities,
13 
and LGUs and other water service providers (WSP) whether directly or in
14 
coordination with other agencies on all aspects of integrated water
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resources management;
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(d) Conduct a performance audit of all water-related agencies and institutions,
17 
including but not limited to the water districts, MWSS, MWSS-RO and its
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concessionaires, LGU-run utilities. Tourism Infrastructure and Enterprise
19 
Zone Authority, Philippine Economic Zone Authority, Bases Conversion and
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Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA;
21 
(e) Respond to consumer complaints, and ensure the adequate promotion of
22 
consumer interests;
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(f) Deputize any official or agency of the government to assist in the
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performance of any of the powers and functions of the Department;
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(g) Appoint, hire, and maintain adequate staff and personnel, advisers or
26 
consultants with suitable qualifications and experience, as necessary, in
27 
accordance with relevant civil service laws, rules, and regulations.
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V. Coordination
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(a) Coordinate and rationalize the efforts of relevant government agencies and
30 
instrumentalities to ensure a whole-of-government approach to attaining
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water security;
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(b) Coordinate and integrate water resources development activities of the
2 
country within the context of national plans and policies for social and
3 
economic development;
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(c) Coordinate with other government agencies, universities, academe, and
5 
private professional groups in all aspects of data gathering, the conduct of
6 
special studies and research on all related aspects of water resources
7 
management and development such as climate change, environmental
8 
quality, desalination, and the development of operating strategies,
9 
procedures, and protocols with accompanying computerized decision tools
10 
for major water facilities;
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(d) Coordinate with the concerned and relevant agencies engaged in flood
12 
control, flood risk management, and drought risk management; and;
13 
(e) Coordinate proactively with LGUs to ensure the integration of water
14 
resources development plans into their comprehensive land use plans,
15 
Comprehensive Development Plans, or Provincial Physical Framework and
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Development Plan.
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VI. Other Functions
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(a) Create, when necessary, water resource subsidiaries, instrumentalities, and
19 
entities to engage in water transmission, water distribution, waste water
20 
treatment and management, and sanitation in accordance with existing
21 
relevant laws, without prejudice to private entities capable of and willing to
22 
engage in the aforementioned activities through concession agreements,
23 
joint venture agreements, bulk water agreements, or service agreements or
24 
contracts. For this purpose, the Department shall ensure compliance with
25 
existing frameworks, rules, regulations and guidelines for private sector
26 
participation in water transmission, water distribution, waste water
27 
treatment and management, storm water management, and sanitation;
28 
(b) Enter into contracts, joint venture agreements, public-private partnerships,
29 
and memorandum of agreements or understanding either domestic or
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foreign relating to investment and financing water related projects, under
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such terms and conditions as the Department may deem proper and
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reasonable subject to existing laws;
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(c) Review existing guidelines appropriate for private sector participation in the
2 
water sector and submit recommendations to the Public Private Partnership
3 
(PPP) Center and other concerned agencies to promote and enable more
4 
PPPs in the sector; and
5 
(d) Exercise such other powers and functions necessary or incidental to the
6 
effective administration and management of the country's water resources.
7 
Sec. 7. Offices, Functions, and Personnel to be Completely Absorbed by the
8 
Department- The following offices are hereby abolished, and their respective powers
9 
and functions, and the corresponding personnel, funds and appropriations, records,
10 
equipment, and property shall be absorbed by the Department:
11 
(a) National Water Resources Board, whose mandate, powers, and functions
12 
are provided in Presidential Decree No. 424 creating the National Water
13 
Resources Council, now NWRB, as amended: Provided, That its water utility
14 
regulation units and functions vested under Commonwealth Act No. 146,
15 
also known as the "Public Service Act", as amended, shall be absorbed by
16 
the Water Regulatory Commission created under this Act: Provided, further,
17 
That its resource allocation or regulation units vested under Presidential
18 
Decree No. 1067 shall be absorbed by the Department under the National
19 
Water Resources Adjudication Board and the Resource Allocation Office,
20 
also created under this Act;
21 
(b) Local Water Utilities Administration (LWUA) with its services, departments
22 
and divisions, whose mandate, powers and functions are provided for in
23 
Title III of Presidential Decree No. 198, as amended, otherwise known as
24 
the "Local Water Utilities Administration Law": Provided, That its economic
25 
regulatory functions over local water districts shall be fully absorbed by the
26 
Water Regulatory Commission created under this Act: Provided, further,
27 
That its function to provide technical assistance to local water service
28 
providers shall be absorbed by the Department under the Local Water
29 
Service Providers Bureau, also created under this Act;
30 
(c) River Basin Control Office (RBCO) of the DENR whose mandate, powers
31 
and functions are found in Executive Order No. 510, series of 2006, and
32 
Executive Order No. 816, series of 2009, as amended: Provided, That the
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DENR shall continue to have primary authority and responsibility for
2 
protecting the environment and managing the country's watersheds and
3 
reforestation activities: Provided, further. That the targeting of priority
4 
watershed areas shall be coordinated with the Department;
5 
(d) Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened
6 
by virtue of DENR Administrative Order 2011-01, to coordinate the efforts of
7 
the fourteen (14) national agencies covered by the Mandamus Order of the
8 
Supreme Court to rehabilitate Manila Bay;
9 
(e) Water Supply and Sanitation Unit of the Department of the Interior and Local
10 
Government; and
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(f) Water Resource Management Office of the DENR whose mandate, powers,
12 
and functions are provided in Executive Order No. 22, series of 2023.
13 
Sec. 8. Powers and Functions to be Transferred to the Department- The powers
14 
and functions of the following agencies, bureaus, and units and the corresponding
15 
personnel, funds and appropriations, records, equipment, and property are also
16 
hereby transferred to the Department:
17 
(a) The powers and functions of the DPWH with regard to the planning,
18 
programming, administration, monitoring, and management of the National
19 
Sewerage and Septage Management Program (NSSMP); and
20 
(b) The following functions of the dissolved Pasig River Rehabilitation Commission
21 
and transferred to the Manila Bay Task Force per Executive Order No. 93,
22 
series of 2019:
23 
(i) Updating and leading in the overall implementation of the Pasig River
24 
Rehabilitation Master Plan; and
25 
(ii) Ensuring that the easements provided for in the Civil Code and other
26 
relevant laws are enforced, especially in all the esteros and waterways as
27 
well as abating the dumping of untreated wastewater and sewage into
28 
water systems, including all acts and omissions in violation of Presidential
29 
Decree No. 984, as amended, and other related laws.
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Sec. 9. Attached Agencies- The Department shall exercise administrative
2 
supervision over the following agencies for purposes of policy and program
3 
coordination, monitoring, and evaluation;
4 
(a) The Metropoiitan Waterworks and Sewerage System (MWSS), whose
5 
mandate, powers, and functions are defined under Republic Act No. 6234,
6 
as amended entitied, "An Act Creating the Metropolitan Waterworks and
7 
Sewerage System and Dissolving the National Waterworks and Sewerage
8 
Authority, and For Other Purposes," shali be transferred from the DENR
9 
and attached to the Department: Provided, That the MWSS shail continue
10 
to facilitate the exercise by the concessionaires of their responsibility; carry
11 
out accounting and notification functions; monitor, report, and administer
12 
loans; perform related functions in connection with existing projects;
13 
manage, operate, and dispose its retained assets: Provided, further. That
14 
its regulatory arm, the MWSS-Regulatory Office, shall be fully absorbed by
15 
the Water Regulatory Commission created under this Act;
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(b) The Laguna Lake Development Authority (LLDA), whose mandate, powers
17 
and functions are defined under Republic Act No. 4850 otherwise known as
18 
"An Act Creating the Laguna Lake Deveiopment Authority, Prescribing Its
19 
Powers, Functions and Duties, Providing Funds Therefor, and for Other
20 
Purposes", as amended, shall be transferred from DENR and attached to
21 
the Department: Provided, That the power to set rates and fees for the use
22 
of the iake waters and its tributaries for all beneficial purposes under
23 
Section 4-B of Republic Act No. 4850, and the corresponding personnei,
24 
funds and appropriations, records, equipment, and property thereof shall
25 
be transferred to the Water Regulatory Commission: Provided, further:
26 
That the rates fees set by the WRC shali no longer be subject to the
27 
approval of the President of the Phiiippines. The LLDA shaii continue to
28 
serve as the lake management and development authority similar to a
29 
multi-stakeholder river basin organization and shall ensure the
30 
implementation of the Laguna Lake Master Plan which shall be updated by
31 
the Department to ensure alignment with the NWRMFP;
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(c) The National Irrigation Administration (NIA), whose mandates, powers and
2 
functions are defined under Republic Act No. 3601, otherwise known as "An
3 
Act Granting the National Irrigation Administration", as amended, is hereby
4 
transferred to the Department; and
5 
(d) Any other agency performing water resources management, conservation,
6 
and protection functions may be transferred to the Department as the
7 
President deems necessary.
8 
The Secretary shall be the ex-officio Chairperson of the Governing Boards of the
9 
aforementioned government-owned and controlled corporations to be attached
10 
under the Department. In case existing laws, rules and regulations provide for a
11 
specific process in appointing the agency's Chairperson, the Secretary of Water
12 
Resources shall serve as Co-Chairperson.
13 
Sec. 10. Organization-The Department shall be composed of the Office of the
14 
Secretary, and the various bureaus and services, and regional offices. The Office of
15 
the Secretary shall house the Office of the Department Secretary, the Office of the
16 
Undersecretaries, the Office of the Assistant Secretaries, and their immediate support
17 
staff.
18 
Sec. 11. Secretary of the Department of Water Resources- The authority and
19 
responsibility for the exercise of the mandate of the Department and for the
20 
discharge of its powers and functions shall be vested in the Secretary of the
21 
Department, hereinafter referred to as the Secretary, who shall be appointed by the
22 
President, subject to confirmation by the Commission on Appointments. The
23 
Secretary shall:
24 
(a) Provide executive direction, supervision, and control over the entire
25 
operations of the Department and exercise supervision over its attached
26 
agency for program and policy coordination;
27 
(b) Advise the President on the promulgation of executive or administrative
28 
orders, and other issuances and on the formulation of necessary regulatory
29 
or legislative proposals on matters pertaining to the management of water
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resources, water supply, sanitation, and septage services;
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(c) Establish the policies and standards for the effective, efficient, and
2 
economical operation 
of the 
Department pursuant to the President's
3 
guidelines;
4 
(d) Advise the President on the status of water management and supply,
5 
recommend to the President the declaration of a state calamity in areas
6 
affected by water supply, and submit proposals to restore normalcy in the
7 
affected areas;
8 
(e) Promulgate rules and regulations necessary to carry out the objectives,
9 
policies and functions of the Department;
10 
(f) Designate and appoint officers and employees of the Department, excluding
11 
the Undersecretaries, Assistant Secretaries, and Regional and Assistant
12 
Regional Directors, in accordance with the civil service laws, rules and
13 
regulations;
14 
(g) Exercise control, supervision, and disciplinary powers, in accordance with
15 
law, over all officers and employees of the Department, including their
16 
investigation and the designation of a committee or officer to conduct such
17 
investigation, in accordance with the civil service laws, rules and regulations;
18 
(h) Create regional offices and such other service units, bureaus, and divisions as
19 
may be necessary;
20 
(i) Call upon and deputize any official, agent, employee, agency, or
21 
instrumentality of the national and local government for any assistance that it
22 
may deem necessary to carry out the purposes of this Chapter, subject to
23 
existing laws;
24 
(j) Delegate authority for the performance of any power or function, as defined
25 
herein to officials and employees under his direction as deemed appropriate, in
26 
accordance with existing laws;
27 
(k) Act as the ex-officio Chairperson of the governing board of the agencies
28 
attached to the Department; and
29 
(I) Perform such other duties and responsibilities as may be provided by law.
30 
Sec. 12. The Offices of the Secretary and Undersecretaries-The Office of the
31 
Secretary shall be composed of the Secretary and immediate staff. The Secretary
32 
shall be assisted by not more than three (3) Undersecretaries and three (3) Assistant
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Secretaries, who shall all be appointed by the President upon the recommendation
2 
of the Secretary.
3 
The Secretary is hereby authorized to delineate and assign the respective
4 
functional areas of responsibility of the Undersecretaries and Assistant Secretaries:
5 
Provided, That such responsibility shall be with respect 
to the mandate 
and
6 
objectives of the Department: Provided further. That no Undersecretary shall be
7 
assigned primarily to administrative responsibilities.
8 
Sec. 13. Qualifications of the Department Secretary, Undersecretaries, and
9 
Assistant Secretaries-
10 
(a) No person shall be appointed Secretary, Undersecretary, or Assistant
11 
Secretary unless he or she is of good moral character, of proven integrity
12 
and competence in public administration, and has a minimum of seven (7)
13 
years of experience in the administration of water, sewerage, sanitation,
14 
irrigation, flood control, or drainage programs, preferably in a public agency;
15 
(b) At least one (1) of the Undersecretaries and at least one (1) of the Assistant
16 
Secretaries shall be career officers;
17 
(c) No officer, external auditor, accountant, or legal counsel of any private
18 
company or enterprises primarily engaged in the water industry shall be
19 
eligible for appointment as Secretary within two (2) years from retirement,
20 
resignation, or separation therefrom.
21 
Sec 14. The Water Resources Adjudication Board- There is hereby created a
22 
Water Resources Adjudication Board, hereafter referred to as the Board, under the
23 
Office of the Secretary. The water resources allocation and regulation functions of
24 
the National Water Resources Board are hereby transferred to the Board which shall
25 
supervise the effective appropriation and regulation of the water resources in the
26 
country in accordance with Presidential Decree No. 1067. The Board shall exercise
27 
quasi-judicial powers granted to it under this Act.
28 
Sec. 15. Composition- The Board shall be composed of a Department
29 
Undersecretary as Chairperson and three (3) representatives from stakeholders as
30 
members, who shall all be designated by the Secretary.
31 
There is hereby created a Resource Allocation Office, hereinafter referred to as
32 
the Office, which shall serve as Secretariat to the Board and shall exercise the
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following functions in order to provide technical support to the Board towards the 
effective regulation of the country's water resources.
Sec. 16. Functions of the Board.- The Board shall perform the following 
functions:
(a) Promulgate rules and regulations for the exploitation and optimum utilization 
of water resources, in accordance with Presidential Decree No. 1067 and 
other existing laws, including the imposition on water appropriators of such 
fees or charges by the Department;
(b) Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Research All;
(c) Review and decide on requests for permits to extract or utilize the country's 
water resources and grant the corresponding water rights, upon recommendation of 
the Office in accordance with Presidential Decree No. 1067: Provided, That the water 
rights are exercised within five (5) years of granting of such rights: Provided, further: 
That applicants for water permits shall submit proof of land ownership of, or right to 
use the property where the water source is located: Provided, finally. That, if the 
applicant is currently using the water source being applied for domestic or municipal 
purposes upon the effectivity of this Act, such applicant may submit such proof of 
prior use of possession of said property in lieu of ownership or right to use;
(d) Exercise original jurisdiction over decisions in cases involving the following:
(i) All disputes relating to the appropriation, utilization, exploitation, 
development, control, conservation, and protection of waters;
(ii) Violations and disputes on raw water fees; and
(iii) Violations and disputes involving water permits, administrative allocation 
of water resources, and transfer of water rights;
(e) Issue subpoena duces tecum and subpoena ad testificandum;
(0 Cite any person or party in contempt for refusal to appear, testify or comply 
with the lawful orders of the Board in relation to any matter subject to its 
investigation;
(g) Hear, receive evidence, and decide on cases falling within its jurisdiction;
(h) Impose the appropriate sanctions, including revocation of water permits, over 
violations committed by appropriators after due notice and hearing in
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accordance with Presidential Decree No. 1067 and other existing laws, rules
2 
and regulations as well as future rules and regulations which the Board shall
3 
promulgate;
4 
(i) Review, update, and revise all fees, charges, and penalties imposed on all
5 
water appropriators as stated under Chapter VII and VIII of Presidential Decree
6 
No. 1067, upon recommendation by the Secretariat, and based on scientific
7 
and evidence-based studies;
8 
(j) Promulgate its own rules and procedures; and responsibilities under this law.
9 
Sec. 17. Resource Allocation Office- This Office shall perform the following
10 
functions:
11 
(a) Advise the Board on all matters relating to resource allocation and
12 
regulations;
13 
(b) Formulate rules and regulation for the exploitation and optimum utilization
14 
of surface water, groundwater, and seawater extraction and use, for the
15 
approval of the Board, and for implementation by the Resource Allocation
16 
Office, including the processes for the application of water permits, in
17 
accordance with Presidential Decree No. 1067 and other existing laws;
18 
(c) Process applications of rights to utilize water resources for the appropriate,
19 
optimal and sustainable use of surface and ground water, for the approval
20 
of the Board or its Executive Director, as may be delegated by the Board;
21 
(d) Upon approval by the Board, issue water permits granted to water
22 
appropriators;
23 
(e) Monitor performance and conduct audits on water rights grantees including,
24 
among others, review of compliance by grantees with the terms of the
25 
permits granted;
26 
(f) Investigate, motu proprio or upon complaint, violations of the water rights
27 
and Presidential Decree No. 1067;
28 
(g) In the case of violations and conflicts between and among users, file the
29 
necessary cases for the decision of the Board;
30 
(h) Enforce the decisions promulgated by the Board, and as may be delegated
31 
by the Board;
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(0 Coordinate with other relevant units of the Department regarding the 
generation, updating, managing, and sharing of water data;
G) Respond to consumer complaints, and ensure the adequate promotion of 
consumer interests; and
(k) Perform such other related functions and activities which are necessary for 
the effective regulation of water-related services.
The Office shall be headed by an Executive Director and shall be assisted by one 
(1) Deputy Executive Director.
Sec. 18. Orders and Decisions - Every order or decision rendered by the Board 
shall be in writing and shall state clearly and distinctly the facts and the law on which 
it is based. The Board shall decide each case or application within thirty (30) days 
following its formal submission for resolution. All decisions and final orders in the 
adjudication of contested cases or applications shall be published and made available 
for public inspection.
Sec. 19. Appeais Procedure and Prohibition Against Injunction. -
(a) The orders, rulings, and decisions of the Board shall become final and 
executory after fifteen (15) days from receipt of such order, ruling, or 
decision, unless, prior to the lapse of this period, an appeal was made with 
the Secretary of Water Resources;
(b) All decisions where the penalty imposed is a fine shall be immediately 
executory, except upon the filing of a bond equivalent to the fine imposed 
or as may be fixed by the Board;
(c) Except for the Supreme Court, no temporary restraining order, preliminary 
injunction, or preliminary mandatory injunction may be issued by any court 
to restrain any proceeding before, or the implementation or execution of 
any order, ruling, or decision of the Board.
Sec. 20. Bureaus and Services.- The Department shall establish, operate, and 
maintain the Bureaus and Services under it such as, but not limited to:
(a) The Local Water Service Providers Bureau shall provide technical assistance 
and personnel training for the creation, application for the socialized credit 
program, and operation of local water service providers, and shall effect 
system integration, joint investment and operation, district annexation and
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de-annexation, whenever economically warranted, in accordance with 
Section 50 of Presidential Decree No. 198, as amended by Section 22 of 
Presidential Decree No. 768;
(b) The Bureau of Flood Control and Drainage shall plan and design, in 
coordination with the DPWH and other relevant government agencies, flood 
control and drainage structures and facilities in accordance with technical 
standards, guidelines and manuals, and provide technical assistance to other 
agencies, LGUs, and other stakeholders;
(c) The Planning and Policy Service shall formulate strategies and priorities for 
water resources management and provide the Department with the 
capability to undertake water infrastructure development planning and 
programming;
(d) The Data Management Service shall develop, manage and maintain the 
management information system and knowledge systems of the 
Department, including the processing of water-related data;
(e) 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 and 
property and procurement services, in accordance with civil service laws, 
rules, and regulations;
(0 The Legal and Legislative Service shall provide the Department with services 
on legal affairs such as, but not limited to, contract preparation and review, 
legal and legislative research, complaints and investigation on employees, 
legal counselling and other matters of law;
(g) 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;
(h) Internal Audit Service shall regularly conduct a comprehensive audit of 
various Department activities;
(i) The Public Affairs Service shall enhance government relations with all 
stakeholders including the media and shall ensure that stakeholders and
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marginalized sectors shall be consulted and can take active part in all aspects 
of water resources development and management activities.
The Bureaus and Services of the Department shall be headed by a Director who 
shall be responsible for efficiently and effectively carrying out the functions of the 
Bureau concerned. Each Director shall be assisted by one (1) Assistant Director.
Sec. 21. The Water Resources Regional Offices- Water Resources Regional 
Offices, herein after referred to as the Regional Offices, 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 Department shall establish the water resources regions which shall be 
grouped together according to the hydrological boundaries, physiographic features, 
and homogeneity in climate, whether or not they straddle different LGUs.
The Regional Offices shall have, within their respective water resources region, 
the following functions:
(a) Formulate or update and coordinate the river basin master plans for river 
basins within its jurisdictions consistent with the NWRMP;
(b) Advocate and strongly support the creation and functioning of multi 
stakeholder River Basin Organizations (RBOs) and serve as the secretariat 
of the said RBOs;
(c) Undertake and evaluate the planning, design, and work supervision 
functions of the Department for the water infrastructures within the region, 
and recommend the necessary water infrastructures therein;
(d) Ensure the implementation of laws, policies, programs, rules, and 
regulations regarding the abovementioned infrastructure as well as public 
and private physical structures;
(e) Provide technical assistance related to the water-related functions of other 
agencies within the region, especially the local government;
(f) Coordinate with other departments, LGUs, agencies, institutions and 
organizations within the region in the planning and implementation of the 
river basin master plans;
26


(g) Conduct continuing consultations with the local communities, take 
appropriate measures to make the services of the Department responsive to 
the Central Office, and recommend such appropriate actions as may be 
necessary; and
(h) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.
Each regional office shall be headed by a Regional Director who shall be 
responsible for efficiently and effectively carrying out the duties and responsibilities of 
the office. The Regional Director shall be assisted by one (1) Assistant Regional 
Director. The Regional Directors and Assistant Regional Directors shall be appointed 
by the President.
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate Regional 
Director, unless otherwise determined by the Secretary for reasons of supra-regional 
scope, magnitude, and multi-functional coverage.
Sec. 22. Structure and Staffing Pattern- Subject to the approval of the 
Department of Budget and Management (DBM), the Secretary shall determine the 
organizational structure and create new divisions or units as may be necessary, and 
appoint officers and employees of the Department in accordance with the civil service 
laws, rules and regulations. The remuneration structure of the position in the staffing 
pattern shall strictly conform to Republic Act No. 11466, otherwise known as the 
"Salary Standardization Law of 2019", as amended.
CHAPTER III
SOCIALIZED CREDIT FOR LOCAL WATER SERVICE PROVIDERS 
Sec. 23. Socialized Credit Program- Socialized credit shall be made available,
27 
through the Land Bank of the Philippines (LBP), for capital expenditures necessary for
28 
the maintenance, addition, expansion, or improvement of the services of the water
29 
service providers, such as but not limited to, capital expenditure for water distribution,
30 
water conservation, water treatment, water sanitation, water testing, and other
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related activities and ancillary services: Provided, That the loans shall be available to
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water service providers duly registered with the Department: Provided, further. That 
no loan shall be granted for the purpose of funding operational costs or expenses.
Sec. 24. Committee on the Socialized Credit Program- The Committee on the 
Socialized Credit Program (SCP), hereinafter referred to as the Committee, is hereby 
created. The Committee shall be composed of a representative of LBP as Chairperson 
and a representative of the Department as Vice-Chairperson, both of which should 
hold at least a director position, and four (4) additional members which shall be equally 
shared between the Department and LBP, who shall possess the necessary training 
and experience necessary for the Committee. The Committee shall directly report to 
the Secretary of the Department.
The Committee shall exercise the following functions:
(a) Recommend the lending policies such as, but not limited to, the criteria of 
eligible borrowers, eligible loan purpose, interest rate, fees and charges, 
collateral, guarantee, insurance, and other forms of security, and other 
terms and conditions of the credit facility;
(b) Review the policies, and procedures, and formulate policies for the SCP;
(c) Monitor the process and performance of the SCP;
(d) Monitor the fund disbursements;
(e) Act on issues or concerns relative to the implementation of SCP;
(0 Conduct SCP performance evaluation; and
(g) Exchange credit information with LBP, LWUA, and other relevant agencies.
The SCP shall prioritize the following target beneficiaries:
(a) Water Districts and LGU-run utilities in the Missionary Water Area;
(b) Water Districts with low credit rating; and
(c) Other priority Water Districts or eligible projects of the Water District to be 
identified by the Committee.
Generally, local water service providers with existing Public-Private Partnership 
Projects including joint venture arrangements are not eligible to the SCP.
All recommendations of the Committee shall be jointly approved by the 
Secretary and the Board of the LBP: Provided, That the existing rules, regulations, and 
policies of LBP shall govern all implementation activities of the SCP, such as but not 
limited to, credit and background investigation and loan documentation, evaluation.
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award, negotiation, collection, and restructuring: Provided, further. That the LBP and 
the Department shall exchange relevant information to assess the eligibility of the 
water service providers to be a recipient of a grant or subsidy. Reievant information 
may inciude, but is not limited to, credit standing, existing loan obligations, and 
compliance with previous or existing loan covenants.
The IRR shall provide other functions of the Committee that are necessary for 
the effective implementation of the SCP, including the creation of sub-committees, 
their composition and deiegated functions.
Other Government Financiai Institutions, such as, but not iimited to. 
Development Bank of the Philippines, may provide a similar SCP for water service 
providers: Provided, That these other GFIs shall submit monitoring reports to the 
Department thru the Committee.
Sec. 25. Support Program for Local Water Service Providers- The Department, 
the Department of Finance, and the Department of Budget and Management shall 
issue guidelines in the disbursement of any grant, from any sources, and subsidy 
from the National Government: Provided, That the Department shall be the 
implementing agency for this purpose. Provided, further. That all income derived from 
the lending activities shall be recorded as LBP's income.
CHAPTER IV
THE NATIONAL WATER SECTOR POLICY COUNCIL
Sec. 26. Creation of the National Water Sector Policy Council- There is hereby 
established a National Water Sector Policy Council (NWSPC), hereinafter referred to 
as the Council, which shall exercise policymaking, coordination, harmonization, 
integration, supervision, monitoring and evaluation functions with regard to water, 
land, subsurface, air, and other natural resources. The Council shall be composed of 
the following members:
(a) Secretary of the Department of Water Resources as Chairperson;
(b) Director-General of the National Economic and Development Authority as 
the Vice-Chairperson;
(c) Secretary of the Department of Health (DOH);
(d) Secretary of the Department of the Interior and Local Government (DILG);
(e) Secretary of the Department of Energy (DOE);
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(f) Secretary of the Department of Agriculture (DA);
(g) Secretary of the Department of Social Welfare and Development (DSWD);
(h) Secretary of the Department of Public Works and Highways (DPWH);
(I) Secretary of the Department of Budget and Management (DBM);
(j) Secretary of the Department of Environment and Natural Resources (DENR);
(k) Representative from the Office of the President (OP); and
(l) Chairperson of the National Commission on Indigenous Peoples (NCIP) as 
members.
The Staff of the Department shall serve as Secretariat to the Council.
Sec. 27. Powers and Functions- The powers and functions of the Council shall 
be as follows:
(a) Ensure harmonization of all policies involving water, land, subsurface, air and 
other resources which are connected to the water sector;
(b) Ensure a multi-stakeholder participation in the development, updating, and 
sharing of information system as policy, planning and decision making tools; 
and
(c) Recommend the integration of harmonized policies and priority programs in 
the National Water Resources Management Plan and the National and 
Regional Septage Management Plan.
CHAPTER V
INTERDEPARTMENTAL RELATIONS 
AND INSTITUnONAL ARRANGEMENTS OF THE DWR
Sec. 28. Interface And Institutional Arrangements With Other Agencies-
(a) The Department of Environment and Natural Resources (DENR) shall 
continue to have primary authority and responsibility for protecting the 
environment and managing the country's watersheds. The Pollution 
Adjudication Board shall remain to have jurisdiction with respect to 
adjudication of pollution cases based on exceedance of the DENR Effluent 
Standards and other acts defined as prohibited under Section 27 of R.A. 
No. 9275: Provided, That the Department shall coordinate with the DENR 
regarding the establishment of protocols for management of all water 
related data being collected by the DENR;
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(b) The Department of Health (DOH) shall continue to have primary authority 
and responsibility for setting and enforcing drinking water quality 
standards: Provided, That the Department and the Water Regulatory 
Commission shall coordinate with the DOH in this aspect, and shall ensure 
consistency of standards and targets, as well as the compliance of licensees 
with mandated standards;
(c) The Department of Energy (DOE) and the National Power Corporation (NPC) 
shall continue to have primary authority and responsibility for setting up and 
running hydropower plants: Provided, That all hydropower plant 
development plans shall be consistent with the NWRMP;
(d) The Department shall coordinate with the Department of Agriculture (DA) to 
promote agricultural development that reduces sources of 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: Provided, That the 
Department shall coordinate with the DA and its Bureau of Soils and Water 
Management (BSWM) regarding the establishment of protocols for 
management of all water-related data being collected by the DA, as well as 
the outputs of research and studies by BSWM which may serve as input to 
policy formulation by the Department;
(e) The Department shall coordinate with the Department of Public Works and 
Highways (DPWH) in setting the policies and preparing the master plans for 
bulk water transmission, pipe networks, and related water delivery 
infrastructures as well as flood control and drainage management, and other 
related projects under the DPWH: Provided, That the DPWH shall continue 
to have primary responsibility in the construction and implementation of 
water delivery infrastructures and flood control projects: Provided, further. 
That flood management plans are aligned with the NWRMP and flood waters 
be considered and harnessed as potential water source: Provided, finally. 
That the Department shall coordinate with the DPWH regarding the 
establishment of protocols for management of all water-related data being 
collected by the DPWH and its Bureaus;
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(f) 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;
(g) The Department shall coordinate with Philippine Atmospheric, Geophysical, 
and Astronomical Services Administration (PAGASA), Climate Change 
Commission (CCC), and National Mapping and Resource Information 
Authority (NAMRIA) on scientific studies, integrated surveys, mapping, 
charting and decision support systems;
(h) The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources;
(i) The Department shall coordinate with the Tourism Infrastructure and 
Enterprise Zone Authority (TIEZA), Philippine Reclamation Authority (PRA), 
and economic zone authorities on water resources development and water 
requirements within tourist zones, reclamation areas and economic zones, 
respectively;
0) The Department shall coordinate with the Bangsamoro Autonomous Region 
in Muslim Mindanao (BARMM), specifically its Economic and Development 
Council, Disaster Risk Reduction and Management Council, and Ministry of 
Environment, Natural Resources and Energy, regarding the preparation of 
master plans of river basins that overlap with the inland waters within the 
BARMM's jurisdiction, and ensure the alignment of these plans with the 
NWRMP, Bangsamoro Development Plan, and other related regional plans of 
BARMM;
(k) The Department shall coordinate with the Department of Human Settlements 
and Urban Development in planning, monitoring and enforcing integrated 
land use and water resources management in the Comprehensive Land Use 
Development Plans and Zoning Ordinances of the LGUs to ensure, among 
others, the protection of water sources and that water availability is factored 
in proposed land use development plans and projects; and
(l) The Department shall coordinate with relevant government agencies, 
including LGUs, with respect to development projects and to ensure cross
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cutting collaboration between and among all water subsectors and facilitate
2 
inter-agency subsector coordination, strategic development, planning,
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monitoring and provision of technical, institutional and financial capacity
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building support to their different stakeholders at the water subsector level.
5 
CHAPTER VI
6 
WATER REGULATORY COMMISSION
7 
Sec. 29. Establishment- There is hereby created and established an
8 
independent, quasi-judicial regulatory body to be known as the Water Regulatory
9 
Commission, hereinafter referred to as the Commission.
10 
The Commission shall have a Board of Commissioners, and shall be vested with
11 
powers and functions, as conferred and set forth hereunder.
12 
Sec. 30. The Central and Regulatory Units- The Regulatory Units of the
13 
Commission shall be composed of the Regional Regulatory Units and the Central
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Regulatory Unit.
15 
The economic regulatory units and functions of the MWSS, NWRB, and LWUA
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are hereby transferred to the Commission, and shall collectively comprise its Central
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Regulatory Unit for Water Supply, Sanitation and Sewerage Services that: (a) provide
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services to more than one province; and (b) are owned, operated, or maintained by
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Metro Manila concessionaires.
20 
The Regional Regulatory Units shall be established by the Commission in
21 
accordance with the rules, regulations, guidelines, and standards that the Commission
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shall issue, and as provided in this Act.
23 
Sec. 31. Powers and Functions of the Commission- The overall authority and
24 
powers of the Commission shall cover and apply to all service providers, whether
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private or public, providing or intending to provide water supply, including suppliers
26 
to subdivisions, bulk water suppliers, and other providers for sewerage, and septage
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treatment and disposal services for domestic, residential, institutional, industrial or
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commercial use.
29 
The Commission shall exercise the following powers and functions:
30 
(a) Issue and promulgate rules, regulations and guidelines as may be necessary
31 
to implement and enforce its powers and functions under this Act;
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(b) Issue licenses authorizing the operation of water supply, sanitation, and 
sewerage services in any specified area or areas within the Philippines;
(c) Issue rules and regulations on terms and conditions prescribing minimum 
and mandatory terms for concession agreements, joint venture agreements, 
management agreements, service contracts or other contractual 
arrangements that may be entered into by government entities including 
local water utilities, LGUs, private sector entities, or other water service 
providers for the provision of water, sanitation, or sewerage services, such 
as, but not limited to the (i) the term, scope and total cost of the activity, 
which may be subdivided into phases; (ii) committed contributions and 
corresponding performance security requirements in accordance with any 
agreed phased implementation of the activity; and (iii) cost recovery 
schemes and percentage of the parties' share in the profits and losses, 
among others;
(d) Require the review or approval of contracts or agreements that may impact 
on the tariff and rates of service provision entered into by service providers 
upon petition or motu proprio when public interest so dictates;
(e) Set, regulate, review, and monitor the tariffs, rates, charges, and fees for 
the use of water resources in the Philippines, including irrigation service fees, 
bulk water rates, and septage rates, which may be delegated to the 
Regulatory Units;
(f) Amend, modify, suspend, or revoke any license issued by them, after due 
notice and hearing, on any of the following grounds:
(i) When the facts and circumstances on the strength of which the license 
was issued have been materially misrepresented or have materially 
changed;
(ii) Where the licensee has failed to meet or comply with terms, conditions, 
and performance targets, including but not limited to service expansion, 
that may have targets, including but not limited to service expansions, 
that may have been set in the license;
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(Hi) Where the licensee is found to be manifestly inefficient in the operation 
of or provision of water supply, sanitation, and sewerage services in its 
area; or
(iv) 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;
(g) Promulgate and enforce just and reasonable technical standards, 
classifications and measurements of service;
(h) Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities;
(i) Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof;
(j) Coordinate with the Philippine Competition Commission (PCC) by providing 
technical support in the PCC's exercise of authority and jurisdiction to 
establish rules and enforce regulations to monitor, investigate, provide 
remedies for, and deliberate on cases involving any market power abuse or 
anti-competitive or discriminatory act or behavior by or against any 
participant in the water supply, sanitation, and sewerage sector. Without 
prejudice to the actions that the Philippine Competition Commission, 
pursuant to Republic Act No. 10667, may undertake on its own, the Water 
Regulatory Commission may be directed by the Philippine Competition 
Commission, upon finding that a market participant has engaged in, or fell 
victim to such act or behavior, to stop or redress the same within the 
functions and powers granted to the Water Regulatory Commission under 
this Act;
(k) Adopt and require that books, records, and accounts be kept and maintained 
in accordance with the prescribed uniform accounting system;
(l) Require the submission of plans, reports on finances and operations, 
performance targets, and accomplishments verified under oaths by the 
owner or president and secretary of the licensee;
(m) Determine and require the monitoring and submission of such data, 
statistics, and other information from any or all licensees as may be
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necessary for the effective and efficient exercise of its duties, functions, 
powers and responsibilities: Provided, That such data, statistics, and other 
information shall also be submitted to the Department for integration in the 
centralized database on water resources;
(n) Fix and determine proper and adequate rates of depreciation of properties 
and equipment used in water supply, sanitation, and sewerage services;
(o) Impose and collect annual levies and reasonable fees and surcharges as may 
be necessary for achieving the purposes, powers, and functions of the 
Commission: Provided, That the rate of annual levies and fees shall be 
determined strictly on a cost recovery basis for the reasonable and actual 
cost of regulation in accordance with applicable rules and regulations on the 
imposition and increase of charges;
(p) Investigate, motu proprio or upon complaint in writing, any matter 
concerning the operation of the service and violations of this Act;
(q) Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu proprio violations;
(r) 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;
(s) Impose penalties and fines, which may include, but is not limited to, rebates, 
refunds, and credits to affected consumers, against any licensee or against its 
owners, directors, officers, agents or representatives for any violation of this 
Act or of the license, order, rule regulation or requirement issued by the 
Commission;
(t) 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;
(u) Appoint an interim or temporary management committee upon appeal and 
after due hearing, to ensure continuity of service in cases a licensee fails to 
meet conditions of the license;
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(v) Advise, apprise, and coordinate with the Department, the National Water 
Sector Policy Council, and other relevant agencies of the national or local 
government on any matter relating to water supply, sanitation, and 
sewerage services;
(w) Deputize any official or agency of the government to assist in the 
performance of any of the powers and functions of the Commission;
(X) Appoint, hire, and maintain the Central and Regional Regulators, adequate 
staff and personnel, advisers, and consultants, with suitable qualifications 
and experience, as necessary, subject to existing civil service laws, rules, 
and regulations;
(y) 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, sanitation, and sewerage services; and
(z) Such other incidental powers and functions as may be necessary to attain the 
objectives of this Act.
Sec. 32. Composition of the Water Reguiatory 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, 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 members of the 
Commission, at least one (1) shall be a member of the Philippine Bar with at 
ieast ten (10) years of experience in the active practice of law, at least one 
(1) shall be a certified public accountant with at least ten (10) years of 
experience in active practice; and at least one (1) shall be a licensed engineer
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with at least ten (10) years of experience in the water supply, sewerage, or 
septage management sector;
(b) The term of office of each member of the Commission shall be seven (7) 
years: Provided, That among the members first appointed, the Chairperson 
shall serve for a period of seven (7) years, two (2) members shall serve for 
five (5) years and the other two (2) members shall serve for three (3) years; 
Provided, further. That any member whose term has expired as specified 
herein shall serve as such until his 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 the exercise of 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 of 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 submit for the approval by the President of the Philippines 
the new organizational structure and personnel positions necessary to carry 
out the powers and functions of the Commission, subject to the review and 
approval of the DBM. The personnel positions of the Commission shall be 
filled by regular appointments in accordance with civil service laws, rules, 
and regulations;
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(e) 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;
(f) The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or common law, 
shall be prohibited from holding any interest whatsoever, either as investor, 
stockholder, officer or director, in any company or entity engaged in provision of water 
supply and distribution, septage management and sewerage services and must, 
therefore, divest through sale or legal disposition of any and all interests in the water 
sector upon assumption to office.
Sec. 33. Secretariat of the Commission- The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
such as, but not limited to the following:
(a) Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions;
(b) Coordinate with, monitor, and assess the activities of the Regulatory Units to 
ensure proper implementation of the rules, regulations, and guidelines 
promulgated by the Commission;
(c) Maintain a database on the water supply, sanitation, and sewerage subsector; 
and
(d) Coordinate with other relevant agencies of the national or local government 
on any matter relating to water supply, sanitation, and sewerage.
Sec. 34. The Commission Secretariat- The Executive Director shall head the 
Commission Secretariat, keep and maintain the official records, and report of the 
proceedings of the Commission, and administer oaths in all matters falling within the 
jurisdiction of the Commission.
The Commission shall appoint, fix the compensation, and determine the status, 
qualifications, and duties of the Executive Director and the Secretariat staff subject to 
civil service laws, rules, and regulations. The Executive Director shall have at least ten 
(10) years of experience in the field of law, business, commerce, finance, accounting 
or public administration, water or utility economics, management, physicai or 
engineering services, hydrology and other related services. The members of the 
technicai staff, except those performing purely clerical functions, shall possess at least
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a Bachelor's Degree in any of the following lines of specialization: law, public 
administration, economics, finance, engineering, accounting, or management.
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 
other members of the Commission.
Sec. 35. Enhancement of Technical Competence- The Commission shall 
establish rigorous training programs for its staff for the purpose of enhancing the 
technical competence of the Commission in the following areas: evaluation of technical 
performance and monitoring compliance with service and performance standards, 
performance-based rate-setting reform, environmental standards, and such other 
areas as will enable the Commission to adequately perform its duties and functions.
Sec. 36. Compensation and Other Emoluments.- The compensation of the 
members of the Commission and its staff shall be exempted from the coverage of 
Republic Act. No. 11466, otherwise known as the "Salary Standardization Law of 
2019", as amended. For this purpose, the schedule of compensation of the 
Commission shall be submitted for approval of the President of the Philippines. The 
compensation schedule of the Commission shall be implemented within six (6) months 
from the effectivity of this Act and maybe upgraded by the President of the Philippines 
as the need arises: Provided, That in no case shall the compensation of the 
Commission and its staff be upgraded more than once a year: Provided, further. That 
pertinent civil service laws, rules, and regulations shall be applicable to the 
Commission.
The Chairperson and members of the Commission shall initially be entitled to the 
same salaries, allowances and benefits as those of the Presiding Justice and Associate 
Justices of the Court of Appeals, respectively.
CHAPTER VII
REGISTRATION AND LICENSING
Sec. 37. Registration and Licensing of AH Water Supply, Sanitation, and 
Sewerage Services.- All water supply, sanitation, and sewerage service providers, 
including bulk water suppliers and those providing services to subdivisions and other
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service providers, shall register with the Commission and, subject to its rules,
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guidelines, procedures and other issuances of the Commission, obtain a license to
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operate from the appropriate regulatory units: Provided, That the Commission shall
4 
act on the application for the issuance or the conversion of such licenses and renewals
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thereof within the maximum period of one (1) year as provided under this Act or by
6 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient
7 
Government Service Delivery Act of 2018".
8 
The Commission shall also ensure that the grant and revocation of licenses are
9 
carried out fairly, transparently, and without discrimination. Issuances of the
10 
Commission shall specify, among others, the qualifications, requirements and
11 
procedure for the grant and revocation of licenses including the standards and
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performance targets that shall continuously be complied with to keep the licenses
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valid.
14 
The Commission shall specify the requirements and procedure for existing
15 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience
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and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by
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LWUA, to convert their existing certificates into licenses to operate.
18 
Ail local water utilities, existing water service providers, or holders of CPCN or
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CoC shall be duly prioritized in the issuance of the licenses to operate over the areas
20 
where they currently operate or as may be covered by their franchises. The submission
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of the CPC, CPCN, provisional authority, or the CoC shall be sufficient basis for the
22 
issuance of the new and converted or updated licenses to operate required and
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contemplated under this Act. To ensure continuity of service, the Commission shall
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complete the issuance of such converted or updated licenses not later than six (6)
25 
months from the effectivity of the implementing rules and regulations issued by the
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Commission pursuant to this Act.
27 
Unless otherwise provided in this Act or by the Commission, no public water
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supply, sanitation, and sewerage service provider shall commence or conduct the
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business of providing water supply, sewerage, and sanitation services without first
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obtaining a license.
31 
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water sanitation and treatment services currently existing shall remain valid and
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enforceable unless othenwise terminated, after due notice and hearing for reasons
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provided in the existing terms and conditions under the concession or service
3 
agreement or contract, or invalidated by the Commission, after due notice and
4 
hearing, where national security, national emergency, or public interest so dictates.
5 
Sec. 38. Conditions of License- The Commission may impose such conditions in
6 
the issued license, as it may deem necessary, such as, but not limited to:
7 
(a) Tariffs, rates, and charges that may be imposed from its customers or
8 
consumers;
9 
(b) Term fixing the duration of the privilege;
10 
(c) Grounds for modification, suspension, or cancellation of the license;
11 
(d) Minimum technical performance and service level standards, such as but not
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limited to: (i) water pressure; (ii) minimum flow rates; (iii) connections; (iv)
13 
sewerage discharge, billing, and metering requirements, and (v) sanctions
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for failure to comply with the standards set;
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(e) Expansion targets and service level improvements over time;
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(f) Restrictions or conditions for transferability of the business or controlling
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interest in the business;
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(g) Reportorial requirements and obligations of the grantee; and
19 
(h) Submission to annual performance audit by the Commission or its duly
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authorized representative.
21 
Sec. 39. Rights and Duties of Licensees-
22 
(a) Any person granted a license under this Act or with existing rights under
23 
concession agreements and related agreements shall have the obligation to
24 
ensure that licensed activities are conducted to further public interest and,
25 
in particular:
26 
(i) Foster the maintenance and development of efficient, coordinated, and
27 
viable operation of their licensed activities;
28 
(ii) Ensure that their water supply, sanitation, and sewerage services are
29 
provided in a diligent, conscientious and workman like manner, in
30 
accordance with applicable laws rules and regulations issued by the
31 
Commission and the generally accepted standards and practices in the
32 
water supply, sanitation, and sewerage industry;
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(iii) Comply with drinking water quality requirements and standards that may 
be established by the Commission, Department, and DOH; and
(iv) Ensure that provision of services shall not be discontinued without notice 
to, and approval 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 mains, 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, sanitation, and sewerage 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. 2 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:
(i) Publish the Tariff and other charges approved by and the terms and 
conditions imposed by the Commission for the provision of water supply, 
sanitation, and sewerage services;
(ii) 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 nonpayment of 
tariffs and other charges, or acts of pilferage; and
(c) Recommendation and recovery of arrears in tariffs and other charges.
(iii) Maintain financial accounts in accordance with the manner and procedure 
specified in the license and as may be required by the Commission; and
(iv) 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.
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1 
Sec. 40. Setting Tariffs, Rates and Other Charges.- The Commission shall
2 
establish tariffs, rates and other charges which are fair and reasonable, and ensure
3 
environmental sustainability, economic viability, and a fair return on investments.
4 
Service providers may apply for the setting of tariffs, rates, and charges based on and
5 
consistent with a scientific and evidence-based rate-setting methodology that the
6 
Commission shall, after due consultation, define and publish, taking into account the
7 
following, among others:
8 
(a) Reasonable and prudent capital and recurrent costs of providing the service
9 
including a reasonable rate of return on capital;
10 
(b) Efficiency of the service;
11 
(c) Incentives for enhancement of efficiency;
12 
(d) Capacity to pay of consumers;
13 
(e) Equity considerations;
14 
(f) Environmental sustainability;
15 
(g) Administrative simplicity;
16 
(h) In cases involving valid and subsisting concession agreements prior to the
17 
enactment of this Act, the methodology provided under the concession
18 
agreement;
19 
(i) To the fullest extent practicable, the terms and conditions of the tariffs, rates
20 
or other price-setting mechanisms set forth in any concession agreement,
21 
joint venture agreement or other similar agreement for the provision of water
22 
or sanitation services by an existing service provider.
23 
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid
24 
and reasonable unless invalidated by the Commission, after due notice and hearing,
25 
acting on a protest or contest duly filed with the Commission to ensure continuity of
26 
service, application for setting of tariffs, rates and other charges shall be decided
27 
within a non-extendible period of ninety (90) days from the date of filing thereof, and
28 
the failure of the Commission to act on any such applications shall result in a
29 
provisional approval: Provided, That in no case shall proceedings on any applications
30 
for the setting of tariffs, rates and other charges exceed to a total period of one
31 
hundred twenty (120) days reckoned from the date of filing of the application.
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Sec. 41. Direct Access- Fifty-one percent (51%) of the registered water
2 
consumers in a service area, municipality, city or province may petition for direct
3 
access to water from any water service provider subject to concurrence by and
4 
reasonable compensation to the service provider and approval by the Commission. If
5 
the petition for direct access from any water service provider is approved by the
6 
Commission, the new water service provider shall reimburse the existing service
7 
provider for, as applicable, either the book value or the market value as determined
8 
by an independent appraiser accredited by the Commission, whichever is higher, of
9 
the water source, water supply, or water distribution or transmission facilities,
10 
pipelines and other equipment which shall be transferred to or utilized by the new
11 
water service provider. The Commission shall promulgate the implementing rules and
12 
procedures for this mode of service, which shall include, among others, financial and
13 
technical capability of the new service provider.
14 
Sec. 42. Innovative Schemes to Improve Efficiency and Management of Systems.
15 
- The Commission shall promote innovative schemes such as the consolidation or
16 
integration of water supply, sanitation, and sewerage services, or providers in the
17 
same service area, where it shall result in improved efficiency, service expansion and
18 
lower costs.
19 
To this end, the Commission shall establish and issue such rules and guidelines
20 
as may be necessary to (a) create performance-based and time-bound incentives to
21 
encourage efficiency and service expansion; (b) establish the standards and targets
22 
that service providers are required to meet; and (c) define the fines and penalties that
23 
shall be imposed for failure to meet such standards and targets.
24 
CHAPTER VIII
25 
PROCEEDINGS BEFORE THE COMMISSION
26 
Sec. 43. Proceedings Before the Commission- For the purpose of any
27 
investigation, inquiry, or proceeding, the Commission shall:
28 
(a) Issue subpoena duces tecum and subpoena ad testificandum;
29 
(b) Appoint hearing officers to hear and receive evidence on behalf of the
30 
Commission;
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(c) Cite any person or party for contempt for refusal to appear, testify or comply
2 
with an order of the Commission on any matter that is the subject of
3 
investigation, inquiry or proceeding before the Commission.
4 
Sec. 44. Orders and Decisions of the Commission- Any order, resolution, or
5 
decision of the Commission shall be promulgated promptly, expeditiously, reasonably,
6 
and in writing, and shall state clearly and distinctly the facts and law on which it is
7 
based. The Commission shall publish and make available for public inspection, all
8 
decisions and final orders in the adjudication of contested cases or applications.
9 
Sec. 45. Appeais Procedure- The orders, rulings, and decisions of the
10 
Commission are final and executory unless appealed to the Court of Appeals within
11 
fifteen (15) days from receipt of notice of such order, ruling or decision: Provided,
12 
That orders, rulings, and decisions of the Commission approving tariffs, shall be
13 
immediately executory and may be suspended only upon appeal and filing of a bond,
14 
in an amount to be fixed by the Commission, to answer for damages occasioned by
15 
the suspension or stay of execution of such orders, rulings, and decisions.
16 
Sec. 46. Prohibition Against Injunctions.- Except for the Supreme Court, no
17 
temporary restraining order, preliminary injunction, or preliminary mandatory
18 
injunction may be issued by any court to restrain any proceeding before, or the
19 
implementation or execution of any order, ruling, or decision of the Commission.
20 
CHAPTER IX
21 
TRANSITORY PROVISIONS
22 
Sec. 47. Transition Period.- The Department shall, by virtue of this Act be
23 
subrogated to all the rights and assume all the functions of the government agencies
24 
and units whose powers and functions have been subsumed, absorbed, transferred or
25 
attached to the Department.
26 
The Commission shall also, by virtue of this Act, be subrogated to all the rights,
27 
and assume all the functions, of the Water Utilities Division of the NWRB, the
28 
regulatory offices of MWSS and LWUA, and ail other government agencies and units
29 
whose powers and functions have been transferred to the Commission in accordance
30 
with the civil service laws, rules, and regulations.
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The transfer of powers and functions to the Department or the Commission of
2 
the concerned agencies as herein provided for, shall be deemed completed within six
3 
(6) months after the effectivity of this Act.
4 
All agencies transferred, subsumed and attached to the Department or the
5 
Commission, shall continue to function under their present mandates until the six
6 
month transition period mandated under this Act shall have lapsed. The transfer of
7 
powers and functions shall include all applicable funds, personnel, records, property
8 
and equipment, as may be necessary. The heads of the affected agencies shall
9 
continue to serve until replaced.
10 
All rights and functions of the affected agencies are hereby transferred to and
11 
assumed by the Department or the Commission, and shall be acted upon in
12 
accordance with the rules and regulations of the Commission on Audit and other
13 
pertinent laws, rules, and regulations.
14 
Sec. 48. Absorption or Separation from Service of Empioyees of the Subrogated
15 
Agencies-The current employees of all government agencies and units whose powers
16 
and functions have been transferred to, absorbed or subsumed by the Department or
17 
Commission shall enjoy security of tenure, in accordance with their staffing pattern
18 
and the selection process as prescribed under Republic Act No. 6656 or the
19 
"Government Reorganization Law".
20 
Employees opting to be separated from the service as a consequence of the
21 
consolidation and reconstitution under the provisions of this Act, shall, within one (1)
22 
month from their separation or phase out from the service, receive separation benefits
23 
in accordance with existing laws and those who are qualified to retire shall be allowed
24 
to retire and be entitled to ail benefits under existing retirement laws, subject to
25 
existing rules and regulations of the Commission on Audit.
26 
CHAPTER X
27 
FINAL PROVISIONS
28 
Sec. 49. AppiicabHity of Ease of Doing Business Law-The prescribed processing
29 
time provided under Section 9(b) of Republic Act No. 11032 shall be applicable to all
30 
agencies and LGUs covered under this Act particularly on accessing government
31 
services.
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Sec. 50. Appropriations-The amount necessary for the initial implementation of
2 
this Act shall be charged against the current year's appropriations of the agencies,
3 
entities, divisions, sections or units subsumed or transferred to the Department.
4 
Thereafter, such amount shall be included in the annual General Appropriations Act.
5 
Sec. 51. Impiementing Rules and Regulations- Upon the effectivity of this Act,
6 
the Department and the Commission, as may be applicable, as well as NEDA, DBM,
7 
DENR, CSC, and the National Commission on Indigenous Peoples in consultation with
8 
concerned government agencies shall promulgate the implementing rules and
9 
regulations (IRR) of the Department and the Commission necessary for the effective
10 
implementation of this Act within one hundred eighty (180) days after its effectivity.
11 
Sec. 52. Separability Clause- If any reason, any portion or provision of this Act
12 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby
13 
shall continue to be in full force and effect.
14 
Sec. 53. Repealing Ciause.-
15 
(a) The following provisions are hereby repealed:
16 
(i) Section 3 (h) and Section 12 on the fixing of water rates and sanitation
17 
service fees. Section 3 (n) on regulation of waterworks and deep wells,
18 
and Section 3 (p) on the regulation of waterworks and sanitation systems
19 
in privately owned subdivisions of Republic Act No. 6234;
20 
(ii) Section 62 on regulation and Section 63 on rate review of Presidential
21 
Decree No. 198 otherwise known as the "Provincial Water Utilities Act of
22 
1973", as amended by Letter of Instruction No. 700 -"Providing Measures
23 
To Control And Regulate Increase In Water Rates", Letter of Instruction
24 
No. 744 - "Relative To Reliable Water Supply At Reasonable Rates In The
25 
Countryside", Executive Order No. 124-A, series of 1987 - "Reorganization
26 
Act of the Ministry of Public Works and Highways", and Executive Order
27 
No. 123, 30 January 1987 - "Reorganization Act of Ministry of Social
28 
Services and Development"; and
29 
(Hi) Executive Order No. 22, series of 2023, creating the Water Resources
30 
Management Office of the DENR; and
31 
(iv) Section 154, Article V, Chapter I, Title One, Book II of Republic Act No.
32 
7160 otherwise known as the "Local Government Code of 1991", as
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1 
amended, and its implementing rules and regulations on the power of the
2 
LGUs to fix the rates of water utilities owned, operated and maintained by
3 
them within their jurisdiction.
4 
(b) All other laws, presidential decrees, executive orders, presidential
5 
proclamations, rules and regulations, or parts thereof which are inconsistent with the
6 
provisions of this Act are hereby repealed or amended accordingly.
7 
Sec. 54. Effectivity- This Act shall take effect fifteen (15) days after its
8 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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