Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
‘Third Regular Session

, HOUSE BILE No. 6 6 7 )

Introduced by Hon. ANGELO B. PALMONES

EXPLANATORY NOTE

Presidential Decree No. 1067 otherwise known as the Water Code of the Philippines was
promulgated back in 1976 or more than 30 years ago. In the Philippine context the 1970s saw
the awakening of environmental consciousness, although in a nascent stage. Since then
concem for the environment has become fully developed. Policies on the environment
likewise started to be enunciated promoting clean air and clean water. We also have # law on
solid waste management

‘The laws on the environment deal more on quality and quality standards such as of water and
air, However, the Water Code deals with the management of water resources such as
ownership, development, appropriation/distribution and conservation

The proposed National Water Security Act promotes an integrated water resources
management using appropriate physiographic units such as watersheds or river basins. It also
requires all local government units to include in their land use plans a water management and
development plan. It also requires Water Districts to submit water resources management plan
to Local Government Units for consideration in the land use plan of the LGUs.

‘The supervision and, regulation of sewerage systems is not covered in the existing Water
Code. The proposed Act corrects this situation and rationalizes economic regulation: with
respect to tariff, safety, reliability and quality of water supply and sewerage services to
balance the interest of service providers and consumers.

For the above reasons, it is requested that this bill be enacted soon.

ANGEI|O B. PALMONES
Represeftative, AGHAM Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

nouse bit. No._66'76

Introduced by Hon. ANGELO B. PALMONES

AN ACT RENAMING THE WATER CODE OF THE PHILIPPINES INTO.
NATIONAL WATER SECURITY ACT OF 2012 THEREBY REVISING AND
CONSOLIDATING THE LAWS GOVERNING THE OWNERSHIP,
APPROPRIATION, — UTILIZATIO! EXPLOITATION, DEVELOPMENT,
CONSERVATION AND PROTECTION OF WATER RESOURCES AND
REGULATION OF WATER SUPPLY AND SEWERAGE SYSTEM

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress Assembled:

CHAPTER |
DECLARATION OF OBJECTIVES AND PRINCIPLES:

Section 1. This Act shall be known as The National Water Security Act of 2012.
Section 2. The objectives of this Act are:
a. To establish the basic principles and framework relating to the appropriation,
control and conservation of water resources to achieve the optimum

development and national utilization of these resources;

b. To define the extent of the rights and obligations of water users and owners
including the protection and regulation of such rights;

To adopt a basic law governing the ownership, appropriation, utilization,
exploitation, development, conservation and protection of water resources and
rights to land related thereto;

a. To adopt Integrated Water Resources Management (IWRM) as a general
strategy for water resources management to ensure sustainability and
environmental integrity;

d. To regulate the management and operation of water supply and sewerage
service providers; and

f To identify the administrative agencies that will enforce this Act.


Section 3, ‘The underlying principles of this Act are:
a. Allwaters belong to the State.

b. All waters that belong to the State cannot be the subject of acquisitive
prescription

¢. The State may allow the use or development of waters by administrative
concession.

d. The utilization, exploitation, development, conservation and protection of
water resources shall be subject to the control and regulation of the
government through the National Water Resources Board, hereinafter referred
to as the Board.

¢, Preference in the use and development of waters shall consider adoption of the
principles of IWRM, climate change adaptation strategies and current usages
to be responsive to the changing needs of the country.

f All water supply and sewerage service providers shall be effectively and
economically regulated to balance the interest of the water supply and
sewerage service providers as well as the consumers.

Section 4. Waters, as used in this Act, refers to water under the ground, water above the
ground, water in the atmosphere and the waters of the sea within the territorial jurisdiction of
the Philippines.

CHAPTER IL
OWNERSHIP OF WATERS

Section 5.1

pe following belong to the State;

a. Rivers and their natural beds;

b. Continuous or intermittent waters of springs and brooks running in their
natural beds and the beds themselves;

¢. Natural lakes and lagoons;

d. All other categories of surface waters such as water flowing over lands, water
from rainfall whether natural or artificial, and water from agricultural runoff,
seepage and drainage;

€, Atmospheric water,

Subterranean or ground waters; and

g. Seawater

Section 6. The following waters found on private lands also belong to the State;

Continuous or intermittent waters rising on such lands;
Lakes and lagoons naturally occurring on such lands;
Rain water falling on such lands;

Subterranean or ground waters; and

‘Waters in swamps and marshes.

parse


The owner of the land where the water is found may use the same for domestic purposes
without securing a permit, provided that such use shall be registered with the Board. ‘The
Board, however, may regulate such use when there is wastage, or in times of emergency.

Section 7. Subject to the provisions of this Act, any person who captures or collects water by
means of cisterns, tanks, or pools shall have exclusive control over such water and the right to
dispose the same.

Section 8. Water legally appropriated shall be subject to the control of the appropriator fom
the moment it reaches the appropriator’s canal or aqueduct leading to the place where the
water will be used or stored and, thereafter, so long as it is being beneficially used for the
purposes for which it was appropriated

CHAPTER Hil
APPROPRIATION OF WATERS

Section 9. Waters may be appropriated and diverted in accordance with the provisions of this
Act.

Appropriation of waters, as used in this Act, is the acquisition of rights over the use of waters
or the taking or diverting of waters from a natural source in the manner and for any purpose
allowed by law

Section 10. Water may be appropriated for the following purposes:

a. Domestic

b. Municipal

¢. Irrigation

d. Power generation
¢, Fisheries

f Livestock raising
g. Industrial

h, Commercial

i Recreational, and
j. Other purposes

Use of water for domestic purposes is the utilization of water for drinking, washing, bathing,
cooking or other houschold needs, home gardens, and watering of lawns or domestic animals.

Use of water for municipal purposes is the utilization of water for supplying the water
requirements of the community

Use of water for irrigation is the utilization of water for producing agricultural crops.

Use of water for power generation is the utilization of water for producing electrical or
mechanical power.

Use of water for fisheries is the utilization of water for the propagation and culture of fish as
‘a commercial enterprise.


Use of water for livestock raising is the utilization of water for large herds or flocks of
animals raised as a commercial enterprise.

Use of water for industrial purposes is the utilization of water in factories, industrial plants
and mines, including the use of water as an ingredient of a finished product

Use of water for commercial purposes is the utilization of water used by business
establishments and/or any other related firms or companies which include but not limited to
restaurants, shopping malls, commercial laboratories, hospitals, markets, hotels, dormitories,
gas stations, abattoirs and other establishments

Use of water for recreational purposes is the utilization of water for swimming pools, bath
houses, boating, water skiing, golf courses and other similar facilities in resorts and other
places of recreation.

Section 11. The State, for reasons of public policy, may declare waters not previously
appropriated, in whole or in part, exempt from appropriation for any or all purposes and,
thereupon, such waters may not be appropriated for those purposes.

Section 12. Waters appropriated for a particular purpose may be applied for another purpose
only upon prior approval of the Board and on condition that the new use does not unduly
prejudice the rights of other permittees, or require an increase in the volume of water

Section 13. Except as otherwise herein provided, no person, including government agencies
and instrumentalities, local government units and govemment-owned or controlled
corporations, shall appropriate water without a water right, which shall be evidenced by a
document known as a water permit.

Water right is the privilege granted by the government to appropriate and use water

Section 14. Subject to the provisions of this Act concerning the control, protection,
conservation, and regulation of the appropriation and use of waters, any person may
appropriate or use natural bodies of water without securing a water permit for any of the
following

&. Appropriation of water by means of hand carried receptacles; and,

b. Bathing or washing, watering or dipping of domestic or farm animals, and
navigation of watercrafts or transportation of logs and other objects by
flotation.

Section 15. Only citizens of the Philippines, of legal age, as well as juridical persons, who
are duly qualified by law to exploit and develop water resources, may apply for water
permits

Section 16. Any person who desires to obtain a water permit shall file an application with
the Board who shall make known said application to the public for any protests

In determining whether to grant or deny an application, the Board shall consider the
following: protests filed, if any; prior permits granted: the availability of water; the water

5


supply needed for beneficial use; possible adverse effects; land —use economics; and other
relevant factors such as but not limited to the following: efficiency in water use,
environmental reserve and water pollution risks.

Upon approval of an application, a water permit shall be issued and recorded.

Section 17. In areas declared as ancestral domain, no water permit shall be granted without
first securing a free and prior informed consent from the National Commission for
Indigenous,People.

Section 18. The right to the use of water is acquired as of the date of approval of the
application for a water permit, or as of the date of actual use in a case where no permit is
required

Section 19. All water permits granted shall be subject to conditions of beneficial use,
adequate standards of design and construction, and such other terms and conditions as may be
imposed by the Board.

Such permits shall specify the maximum amount of water which may be diverted or
withdrawn, the maximum rate of diversion or withdrawal, the time or times during the year
when water may be diverted or withdrawn, the point or points of diversion or location of
wells, the place of use, the purposes for which water may be used, and such other
requirements the Board deems desirable.

Section 20. Water rights may be leased or transferred in whole or in part to another person
with prior approval of the Board, after due notice and hearing.

Section 21. The measure and limit of appropriation of waters shall be for beneficial use

Beneficial Use of water is the utilization of water in the right amount during the period that
the water is needed conducive to public welfare, safety and health for which the water is
appropriated,

Section 22, Standards of measure and limit of appropriation shall be prescribed by the Board
for the appropriator of water for different purposes and conditions, and the use of waters
which are appropriated shall be measured and controlled in accordance therewith

Except those for domestic use, every appropriator of water shall maintain water control and
measuring devices, and submit records of water withdrawal to the Board.

Section 23. Between two or more appropriators of water from the same source of supply,
priority in time of appropriation shall give the better right, except that in times of emergency
the use of water for domestic and municipal purposes shall have a better right over all other
uses subject fo compensation in proper cases to be determined by the Board; Provided, That
where water shortage is recurrent and the appropriator for municipal use has a lower priority
in time of appropriation, then it shall be his duty to find an alternative source of supply in
accordance with conditions prescribed by the Board.


Section 24. Priorities may be altered on grounds of greater beneficial use, multi-purpose use,
and other similar grounds after due notice and hearing, subject to payment of compensation
in proper cases to be determined by the Board

Claims for compensation payment should be filed with the Board to determine the validity of
the claims upon proof of damages incurred with notice to the benefited party.

The Board shall have jurisdiction over payment of claims and damages as a result of
alteration of priorities in time of appropriation. Prior to the filing of claims/payments, the
parties may however, enter into an amicable settlement

Section 25. A water right shall be exercised in such a manner that the rights of third persons
or of other appropriators are not prejudiced thereby

Section 26. A holder of a water permit may demand the establishment of easements
necessary for the construction and maintenance of the works and facilities needed for the
beneficial use of the waters to be appropriated, subject to the requirements of just
‘compensation and to the following conditions’

a. That he is the owner, lessee, mortgagee or one having real right over the land
upon which he proposes to use water; and

b, That the proposed easement is the most convenient and the least onerous to the
servient estate.

Easements relating to the appropriation and use of waters may be modified by the agreement
of the contracting parties provided the same is not contrary to law or prejudicial to third
persons.

Section 27. Where water shortage is recurrent, the use of the water pursuant to a permit may,
in the interest of equitable distribution of benefits among legal appropriators, be reduced after
due notice and hearing

Section 28 Water users shall bear the diminution of any water supply due to natural causes of
force majeure.

Section 29. Water permits shall continue to be valid as long as water is beneficially used;
however, it may be suspended on the grounds of non-compliance with approved plans and
specifications or schedules of water appropriation; use of water for a purpose other than that
for which it was granted; non-payment of water charges, wastage; failure to submit records of
water diversion; and violation of any term or condition of any permit or of rules and
regulations promulgated by the Board

‘Temporary permits may be issued for the appropriation and use of water for short periods
under special circumstances.

Section 30. Water permit may be revoked after due notice and hearing on grounds of non-
use; gross violation of the conditions imposed in the permit; unauthorized sale of water;
willful failure or refusal to comply with rules and regulations or any lawful order; pollution,
public nuisance or acts detrimental to public health and safety; when the appropriator is found
to be disqualified under the law to exploit and develop natural resources of the Philippines;

7


when, in the case of irrigation, the land is converted to non-agricultural purposes; and other
similar grounds.

Section 31. All water permits are subject to modification or cancellation by the Board, after
due notice and hearing, in favor of a project of greater beneficial use or for multi-purpose
development, and a water permittee who suffers thereby shall be duly compensated by the
entity or person in whose favor the cancellation was made.

' CHAPTER IV
UTILIZATION OF WATERS

Section 32. Preference in the development of water resources shall consider security of the
State, multiple use, beneficial effects, adverse effects and costs development.

Section 33. The utilization of subterranean or groundwater shall be coordinated with that of
surface waters such as rivers, streams, springs and lakes, so that a superior right in one is not
adversely affected by an inferior right in the other.

For this purpose the Board shall promulgate rules and regulations and declare the existence of
control areas for the coordinated development, protection and utilization of subterranean or
groundwater and surface waters.

Control area is an area of land where subterranean or groundwater and surface water are $0
interrelated that withdrawal and use in one similarly affects the other. The boundary of a
control area may be altered from time to time, as circumstances warrant.

Section 34. Water contained in open canals, aqueduets or reservoirs of private persons may
be used by any person for domestic purpose or for watering plants as long as the water is
withdrawn by manual methods without checking the stream or damaging the canal, aqueduct
or reservoir, Provided, That this right may be restricted by the owner should it result in loss
or injury to him.

Section 35. A water permittee or appropriator may use any water course to convey water to
another point in the watercourse for the purpose stated in a permit and such water may be
diverted or recaptured at the point by said permittee in the same amount less allowance for
normal losses in transit, provided, it will not cause flooding along the adjoining areas,

Section 36. Works for the storage, diversion, distribution and utilization of water resources
shall contain adequate provision for the prevention and control of diseases that may be
induced or spread by such works.

Section 37. When the reuse of waste water is feasible, it shall be limited as much as possible,
to such other than direct human consumption. No person or agency shall distribute such water
for public consumption until it is demonstrated that such consumption will not adversely
affect the health and safety of the public.

Section 38. In the construction and operation of hydraulic works, due consideration shall be
given to the preservation of scenic places and historical relics and, in addition to the
provisions of existing laws, no works that would require the destruction or removal of such


places or relics shall be undertaken without showing that the destruction or removal is
necessary and unavoidable.

Section 39. Authority for the construction of dams, bridges and other structures across or that
which may interfere with the flow of navigable or floatable waterways shall first be secured
from the Department of Public Works and Highways or concemed government agency.

Section 40, Except in cases of emergency to save life or property, the construction or repair
of the following works shall be undertaken only after the plans and specifications therefore,
as may be required by the Board, are approved by the proper government agency: dams for
the diversion or storage of water, structures for the use of water power, installations for the
utilization of subterranean or groundwater and other structures for utilization of water
resources.

Seetion 41. No excavation for the purpose of emission of a hot spring or for the enlargement
of the existing opening thereof shall be made without prior permit.

Any person or agency who intends to develop a hot spring for human consumption must first
obtain a permit from the Department of Health.

Section 42. No person shall develop a stream, lake or spring for recreational purposes
without first securing a permit from the Board

Section 43. Unless otherwise ordered by the President of the Philippines and only in times of
national calamity or emergency, no person shall induce or restrain rainfall by any method
such as cloud seeding without a permit from the proper government agency.

Section 44, No person shall raise or lower the water level of a river, stream, lake, lagoon or
marsh nor drain the same without a permit

Section 45. Drainage systems shall be so constructed that its outlets are rivers, lakes, sea,
natural bodies of water, or such other water courses as may be approved by the proper
government agency.

Drainage system shall be classified as to whether it is for storm/rainwater drain or from
sewerage/septage. Drainage for storm/rainwater shall be constructed such that their outlets
are rivers and other water bodies

On the other hand, there should be a separate drainage for sewerage system such that it will
first go to a treatment facility before it goes to a river for disposal.

In case a separate drainage is not possible, a combined sewerage and storm water drainage
should be considered, provided, that its disposal is the same as in the preceding paragraph.

Section 46. When a drainage channel is constructed by a number of persons for their
common benefit, the cost of construction and maintenance of the channel, including damage
to the environment shall be borne by each in proportion to the benefits derived.


Section 47. When artificial means are employed to drain water from higher to lower land, the
owner of the higher land shall select the routes and methods of drainage that will cause the
minimum damage to the lower lands, subject to the requirements of just compensation.

Section 48. When the use, conveyance or storage of waters results in damage to another, the
person responsible for the damage shall pay compensation.

Section 49. When a water resources project interferes with the access of a landowner to a
portion of his property or with the conveyance of irrigation or drainage water, the person or
agency constructing the project shall bear the cost of construction and maintenance of the
bridges, flues and other structures necessary for maintaining access, irrigation or drainage,
in addition to paying compensation for land and incidental damages.

Section 50. Any person having an easement for an aqueduct may enter upon the servient land
for the purpose of cleaning, repairing or replacing the aqueduct or the removal of obstructions
therefrom.

Section S1. Lower estates are obliged to receive the waters which naturally and without the
intervention of man flow from the higher estates, as well as the stone or earth which they
carry with them

The owner of the lower estate cannot construct works which will impede this natural flow,
unless he provides an alternative method of drainage; neither can the owner of the higher
estate make works which will increase this natural flow.

Section 52, The banks of rivers and streams and the shores of the seas and lakes throughout
their entire length and within a zone of three (3) meters in urban areas, twenty (20) meters in
agricultural areas and forty (40) meters in forest areas, along their margins are subject to the
casement of public use in the interest of recreation, navigation, floatage, fishing and salvage
No person shall be allowed fo stay in this zone longer than what is necessary for recreation,
navigation, floatage, fishing or salvage or to build structures of any kind without proper
clearance from appropriate government agency.

Section 53. The establishment, extent, forms and conditions of easements of water not

expressly determined by the provisions of this Act shall be governed by the provisions of the
Civil Code.
CHAPTER V
CONTROL OF WATERS

Section 54. To promote the best interest and the coordinated protection of flood plain lands,
the Secretary of Public Works and Highways in coordination with other concerned national
and local government agencies may declare flood control areas and promulgate guidelines for
governing flood plain management to be included in the Integrated Water Resources
Management plan in every river basin.

Section 55. In declared flood control areas rules and regulations may be promulgated to
prohibit or control activities that may damage or cause deterioration of lakes and dikes,
obstruct the flow of water, change the natural flow of river, increase flood losses or aggravate
flood problems.

10


Section 56. The government may construct necessary flood control structures in declared
flood contro! areas, and for this purpose it shall have a legal easement as wide as may be
needed along the adjacent to the river bank and outside the bed or channel of the river.

Section 57. River beds, sandbars and tidal flats may not be cultivated except upon prior
permission from the Secretary of the Department of Public Works and Highways and such
permission shall not be granted where such cultivation obstructs the flow of water or increase
flood levels so as to cause damage to other arcas,

Section 58. Any person may erect levees or revetments to protect his property from flood,
encroachment by the river or change in the course of the river, provided that such
construction does not cause damage to the property of another.

Section 59, When a river or stream suddenly changes its course to traverse private lands, the
owners of the affected lands may not compel the government to restore the river to its former
bed; nor can they restrain the govemment from taking steps to revert the river or stream to its
former course, The owners of the land thus affected are not entitled to compensation for any
damage sustained thereby. However, the former owners of the new bed shall be the owners of
the abandoned bed in proportion to the area lost by each.

‘The owners of the affected lands may undertake to return the river or stream to its old bed at
their own expense; Provided, That a permit therefore is secured from the Secretary of Public
Works and Highways and work pertaining thereto are commenced within two years from the
change in the course of the river or stream.

Section 60. Rivers, lakes and lagoons may, upon the recommendation of the Department of
‘Transportation and Communications, be declared navigable either in whole or in part.

Section 61. The rafting of logs and other objects on rivers and lakes which are floatable may
be controlled or prohibited during designated seasons of the year with due regard to the needs
of irrigation and domestic water supply and other uses of water.

Section 62. The impounding of water in ponds or reservoirs my be prohibited by the Board
upon consultation with the Department of Health if itis dangerous (o public health, or it may
‘order that such pond or reservoir be drained if such is necessary for the protection of public
health, °

Section 63. Waters of a stream may be stored in a reservoir by a permittee in such amounts as
will not prejudice the right of any permittee downstream. Whatsoever operates the reservoir
shall release water for minimum stream flow.

‘The Board shall formulate criteria/guidelines in consultation with the stakeholders for the
operation of the dam/reservoir which may be the basis for prioritizing water allocation.

All dam owners/operators are required to submit their reservoir operation rule curve for
normal operation to the Board for review and approval.

‘The owners/operators of dams shall be liable for the negligence about safety measures related
to dam’s protection.

an


Section 64. ‘The operator of a dam for the storage of water shall be required to employ a
licensed engineer possessing qualifications prescribed for the proper operation, maintenance
and administration of the dam.

Section 65. The Board shall approve the manner, location, depth and spacing in which
borings for subterranean or groundwater may be made, determine the requirements for the
registration of every boring or alteration to existing borings as well as other control measures
for the exploitation of subterranean or groundwater resources and prescribe the qualifications
of those who would drill such borings,

No person shall drill a well without permission from the Board.

Section 66. Water from one river basin may be transferred to another river basin only with
approval of the Board and upon consultation with concemed local government units and
other stakeholders, In considering any request of such transfer, the Board shall take into
account the full costs of the transfer, the benefits that would accrue to the basin of origin
without the transfer, the benefits would accrue to the receiving basin on account of the
transfer, alternative schemes for supplying water to the receiving basin, and other relevant
factors,

CHAPTER VI
CONSERVATION AND PROTECTION OF WATER RESOURC:

Ss

Section 67. After due notice and hearing when warranted by circumstances, minimum stream
flows for rivers and streams and minimum water levels for lakes are 1o be established by the
Board under such conditions necessary for the protection of the environment, control of
pollution, navigation, prevention of salt drainage and general public use.

Section 68. The Board shall establish a minimum environmental flow to sustain the
biodiversity demand in a river system,

Any proponent developing a project shall consider the environmental flow in the river
system.

Section 69. Any watershed or any area of Jand adjacent to any surface water or overlying any
groundwater may be as a protected area, Rules and regulations may be promulgated by the
Department of Environment and Natural Resources to prohibit or control such activities by
the owners or occupants thereof within the protected area which may damage or cause the
deterioration of the surface area or groundwater or interfere with the investigation, use,
control, protection, management or administration of such waters.

Section 70, It shall be the duty of any person in control of a well to prevent the water from
flowing on the surface of the land, or into any surface water, or any porous stratum
undemeath the surface without being beneficially used

Section 71, It shall be the duty of any person in control of well containing water with
minerals or other substances injurious to man, animals, agriculture, and vegetation to prevent
such waters from flowing on the surface of the land or any surface water or into any aquifer
or porous stratum.

12


Section 72. No person shall utilize an existing well or pond or spread waters for recharging
subterranean or groundwater supplies without prior permission of the Board.

Section 73. To promote better water conservation and usage for irrigation purposes, the
merger of irrigators’ associations and the appropriation of waters by associations instead of
by individuals shalt be encouraged

No water permit shall be granted to an individual when his water requirement can be supplied
through an irrigators’ association.

Section 74, In the consideration of a proposed water resource project, due regard shall be
given to ecological changes resulting from the construction of the project in order to balance
the needs of development and the protection of the environment

Section 75. The conservation of fish and wildlife shall receive proper consideration and shall
be coordinated with other features of water resources development programs to ensure that
aquatic resources and wildlife values receive equal attention with other project purposes

Section 76. Swamps and marshes which are owned by the State and which have primary
value for waterfowl propagation or other wildlife purposes may be reserved and protected
from drainage operation and development by the Department of Environment and Natural
Resources (DENR) through the Protected Areas and Wildlife Bureau (PAWB).

Section 77. No person shall, without prior permission from the Department of Environment
and Natural Resources through the Environmental Management Bureau, build any works that
may produce dangerous or noxious substances or perform any act which may result in the
introduction of sewage, industrial waste, or any pollutant into any source of water supply.

Water pollution is the impairment of the quality of water beyond a certain standard. This
standard may vary according to the use of water and shall be set by the Department of
Environment and Natural Resources through the Environmental Management Bureau.

Section 78. The establishment of cemeteries and waste disposal areas that may affect the
source of a water supply or a reservoir for domestic or municipal use shall be subject to the
tules and regulations promulgated by the Department of Health and Department of
Environment and Natural Resources.

Section 79. Tailings from mining operations and sediments from placer mining shall not be
dumped into rivers and waterways without prior permission from the Board upon
recommendation by the Department of Environment and Natural Resources through the
Environmental Management Bureau.

CHAPTER VIL
MANAGEMENT OF WATERS AND WATERSHED AND RELATED LAND RESOURCES

Section 80, The Integrated Water Resources Management (IWRM) shall be adopted as the
general strategy for water resources management using appropriate physiographic units such
as watershed, river basins or water resources regions.


Section 81. ‘The Board shall initiate and support the establishment of River Basin
Organizations (RBO) within the watershed in coordination with key stakeholders composed
of multi-sectoral members.

Section 82. The River Basin Organization (RBO) shall be responsible in the planning,
coordinating and monitoring of all activities within the entire basin including but not limited
(0 the following
1. To formulate Integrated Water Resources Management (IWRM) policies and plans
and,recommend for Board’s approval
2. To oversee and coordinate the implementation of the IWRM Plan;
a. To arbitrate issues/conflicts and monitor water rights;
b. To regularly review and update IWRM plan;
¢. To promote |WRM
d, To maintain river basin database information

3. To secure funding sources to support the identified projects and programs for the river
basin

Section 83. RBO may create Technical Working Groups to oversee and coordinate the
implementation of the Integrated Water Resources Management Plan for the river basin.

Section 84. The Department of Environment and Natural Resources in coordination with the
National Water Resources Board shall designate certain area as water quality management
area (WQMA) using appropriate physiographic units such as watershed, river basins or water
resources regions,

Section 85. The government shall encourage the adoption of water demand management and
co-efficient water infrastructures strategies and develop incentives/rewards mechanism to
promote such strategies.

Section 86. The DENR in coordination with NWRB and other concemed agencies involved
in watershed management shall undertake watershed conservation, protection and
rehabilitation and shall adopt appropriate soil and water conservation, and protection
measures to safeguard the hydrological integrity of watersheds and help sustain the protection
of water for various purposes and uses.

Section 87, All Local Government Units are required to include in their land use plan a water
resources management plan in close coordination with the Board.

Water districts are required to submit water resources management plan to Local Government
Units for consideration in the land use plan.

CHAPTER VIII
MANAGEMENT, OPERATION AND MAINTENANCE OF WATER SUPPLY AND.
SEWERAGE SYSTEMS

Section 88. To rationalize economic regulation with respect to tariff, safety, reliability and

quality of water supply, the Board shall regulate all water supply and sewerage services to
balance the interest of water service providers and consumers.

14


Section 89, To ensure an uninterrupted and adequate supply and distribution of potable water
for domestic and municipal purposes, the operation and maintenance of waterworks and
sewerage systems must be supervised and regulated by the Board

Section 90. No Water Service Provider and/or Sewerage Operator including but not limited
to national and local government owned and operated water supply and sewerage system,
Metropolitan Waterworks and Sewerage System, Subic Bay Metropolitan Authority-Subic
Water, Clark Development Corporation-Clark Water, Philippine Economic Zone Authority,
Water Districts and other types of management model such as Rural Waterworks Services
Association, Barangay Waterworks Services Association, Cooperatives, all Bulk Water
Suppliers, Chandlers, Peddlers, Homeowners Association, etc. shall operate without having
first secured from the Board a Certificate of Public Convenience (CPC) or Certificate of
Public Convenience and Necessity (CPCN), as the case may be, to the effect that the
‘operation of said service and the authorization to do business will promote the public interest
in a proper and suitable manner.

Any existing contract pertaining to the operation, supply and distribution of water existing
upon the effectivity of this Act is considered valid and subsisting. Any extension or renewal
of contract referred to above shall be subject to the approval of the Board.

Section 91. Non-exclusivity of franchise. Certificate of Public Convenience grantees do not
have the exclusive right to provide water supply and/or sewerage services within a service
area, and consequently, the Board may issue, two or more Certificate of Public Convenience
for operators within any existing or proposed service areas.

In granting additional Certificate of Public Convenience, the Board shall consider necessity
of service and its economic impact to the viability of other service providers in the area.

Scetion 92, The Board shall have the power, upon proper notice and hearing in accordance
with the rules and provisions of this Act, subject to the limitations and exceptions mentioned
and saving provisions to the contrary:

a. Adjudicate and grant CPC/CPCN to operators of waterworks system and
services;

b. Impose penalties for administrative violations and promulgate rules and

regulations relative thereto;

Supervise and control waterworks utilities and their franchises and other

assets/properties related to the operation of their systems;

d, Regulate and fix water and sewerage tariff to be charged by waterworks
operators;

e. Exercise original jurisdiction over all disputes relating to water rates of
utilities and decide the appeals on water rates involving water districts;

f Impose and collect annual supervision regulation fees or charges. from
waterworks systems and public utility operators;

g. Establish reasonable rules, regulation instructions, specification and standards,
to secure the accuracy of the meters and devices for measurement;

h. Require any water service provider to establish, construct, maintain and
operate any reasonable extension facilities; testing and sealing of water meters
and

i. The power to issue provisional authority.

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Section 93. Sale, lease, transfer, donation, management and/or operation contracts, and any
other contracts or agreements involving water utility and sewerage operations shall not be
valid without prior approval of the Board after due notice and hearing.

Section 94. The Board may amend, modify or revoke at any time any certificate issued under
the provisions of this Act, whenever the facts and circumstances on the strength of which said
cettificate was issued have been misrepresented or materially changed.

Section 95. The Board may suspend or revoke any certificate issued under the provisions of
this Act whenever the holder thereof has violated or wilfully and contumaciously refused to
comply with any order, rule or regulation of the Board or any provision of this Act; Provided,
‘That the Board, for good cause, may prior to the hearing suspend for a period not to exceed
thirty days unless otherwise extended by the Board when public safety and health so requires,
any certificate or the exercise of any right or authority issued or granted under this Act by
order of the Board, whenever such step shall in the judgment of the Board be necessary to
avoid serious and irreparable damage or inconvenience to the public or to private interests.

Section 96. When the interest of the public so requires, the Board shall have the power to
take-over temporarily the operation and management of the water supply and sewerage
utilities,

Section 97. The Board may promulgate from time to time, such rules and regulations and
prescribe such restrictions and conditions, consistent with law, as public convenience, interest
or necessity may require; and exercise such other functions as may be prescribed by law.

Section 98. Fees - The Board shall have the power to impose and collect the Supervision and
Regulation Fees for all types of water utilities and sewerage operation. The fees shall be paid
on or before August thirty-first of each year with a penalty of $0% in case of delinquency.
Provided, that if the fees or any balance thereof are not paid within sixty days from the said
date, the penalty shall be increased by one percent for every month thereafter of delinquency,

Section 99. Rulings and decisions of the Board on CPC/CPCN applications and controversies
shall be appealable to the Court of Appeals in the same manner as the rulings and decisions
of the Board on water rights controversies are appealed

Section 100, Other Protective Measures - The water supply and sewerage operators may
construct, operate and provide an appropriate facility for the collection, treatment and
disposal of sewerage and storm water within or outside their area of jurisdictions.

Section 101. The water supply and sewerage operators may only construct, operate and
provide such services outside their area of jurisdictions by means of facilities designed
primarily to service inside their area.

Section 102. The water supply and sewerage operators shall require all establishments,
buildings and households to be connected to the sewer system within such reasonable times
as may be prescribed by the operators, provided that the property upon which such
establishments, buildings and households to be connected are located within 35 meters of an
existing main sewer system of the operator,

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Section 103. ‘The water supply and sewerage operators may declare the further maintenance
of use of cesspools, septic tanks, or other local means of sewerage disposal in such area to be
public nuisance and, after notice in writing of at least ten (10) days, deprive said property
‘owner of any and all services provided by the operator, which sanction may be co-extensive
with the period during which the property owner persists in refusing to connect with the
‘operator's sewer system.

Section 104. Any Certificate of Public Convenience grantee on water supply may opt to
operate sewerage system upon petition to the Board for the regulation of sewerage tariff
without securing a separate Certificate of Public Convenience

Section 105. The Board shall have the power to take sanctions against non-compliance with
the rules and regulations of the Board such as tampering of water meters, water supply and
sewerage lines and malicious destructions of water lines except those as may be provided by
laws

CHAPTER IX
ADMINISTRATION OF WATERS AND ENFORCEMENT OF
PROVISIONS OF THE CODE

Section 106. The Administration and enforcement of the provisions of this Act, including the
granting of permits, Certificate of Public Convenience and Certificate of Public Convenience
and Necessity for water supply and sewerage and the imposition of penalties for
administrative violations hereof, are hereby vested in the National Water Resources Board
which shall be an independent apex body for all water related activities. Except in regard to
those functions which under this Act are specifically conferred upon other agencies of the
government, the Board is hereby empowered to make all decisions and determinations
provided in this Act

Section 107. The Board may deputize any official or agency of the government to perform
any of ts specific functions or activities.

Section 108. The Board shall provide a continuing program and maintain a database system
for data collection, research and manpower development needed for the appropriation,
utilization, exploitation, conservation and protection of the water resources of the country.

All data generating water related agencies shall provide the Board with relevant technical
data for its planning, assessment and regulation function without cost.

Section 109, In the implementation of the provisions of this Act, the Board shall promulgate
the necessary rules and regulations which may provide penalties consisting of a fine as may
be determined by the Board and/or suspension or revocation of the water permit or Certificate
of Public Convenience. Violations of such rules and regulations may be administratively
dealt with by the Board

Such rules and regulations shall take effect fifteen (15) days after publication in newspapers
of general circulation.

Section 110. Rules and regulations by any government agency as well as ordinances,
resolutions prescribed by Local Government Units that pertains to the utilization,

7


exploitation, development, control, conservation or protection of water resources shall be
subject to Board’s approval.

Section 111. The Board is hereby authorized to impose and collect reasonable fees for
supervision and regulation of water service providers and annual water charges.

Annual water charge shall be based on volumetric pricing, which amount shall be
determined by the Board.

he Board shall retain a certain portion of the collected fees and charges in an amount not
exceeding 50% of the total collection which shall be deposited in a special account of the
Board for the implementation of water resources protection and management and other water
related programs and activities within the river basin.

fion 112. The Board and other agencies authorized to enforce this Act are empowered to
enter upon private lands, with previous notice to the owner, for the purpose of conducting
surveys and hydrologic investigations and to perform such other acts as are necessary in
carrying out their functions including the power to exercise the right of eminent domain.

Section 113. No program or project involving the appropriation, utilization, exploitation,
development, control, conservation, or protection of water resources may be undertaken
without prior approval of the Board, except those which the Board may, in its discretion,
exempt,

The Board may require consultation with the public prior to the implementation of certain
water resources development projects.

Section 114. When plans and specifications of a hydraulic structure are submitted for
approval, the government agency whose functions embrace the type of project for which the
structure is intended, shall review the plans and specifications and recommend to the Board
proper action thereon and the latter shall approve the same only when they are in conformity
with the requirements of this Code and the rules and regulations promulgated by the Board.
Notwithstanding such approval, neither the engineer who drew up the plans and
specifications of the hydraulic structure, nor the constructor who built it, shall be relieved of
his liability for damages in case of failure therefore by reason of defect in plans and
specifications, or failure due to defect in construction, within ten (10) years from the
completion of the structure.

Any action to recover such damages must be brought to proper court within five (5) years
following such failure

Section 115. The Board or its duly authorized representatives, in the exercise of its power to
investigate and decide cases brought to its cognizance shall have the power to administer
oaths, compel the attendance of witnesses by subpoena and the production of relevant
documents by subpoena duces tecum.

Non-compliance or violation of such orders or subpoena and subpoena duces tecum shall be
punished in the same manner as direct contempt of an inferior court.

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Section 116. The Board shall have original jurisdiction over all disputes relating to
appropriation, utilization, exploitation, development, control, conservation and protection of
waters within the meaning and context of the provisions of this Act.

The decisions of the Board on water rights controversies shall be immediately executory and
enforcement thereof may be suspended only when a bond in an amount fixed by the Board to
answer for damages occasioned by the suspension or stay of execution shall have been filed
by the appealing party, unless the suspension is by virtue of an order of a competent court.

All disputes shall be decided within sixty (60) days afler the parties submit the same for
decision or resolution.

The Board shall have the power to issue writs of execution and enforce its decisions. In the
exercise of such powers, the Board may utilize the services of national or local police and
other concerned agencies.

Section 117. The decisions of the Board on water right controversies may be appealed to the
Court of Appeals within fifteen (15) days from receipt by the Appealing party of the copy of
the decision on any of the following grounds: (1) grave abuse of discretion; (2) question of
Jaw; and (3) question of fact and law.

CHAPTER X
PENAL PROVISIONS

Section 118. The following acts shall be penalized by suspension or revocation of the
lator’s water permit and Certificate of Public Convenience or other right to the use of
water and/or a fine in the amount not exceeding One Thousand Pesos (P1,000.00) per day in
the discretion of the Board.

1, For water resource violations:

a. Appropriation of water without a water permit, unless such person is expressly
exempted from securing a permit by the provisions of this Act

b. Appropriation of subterranean or groundwater for domestic use by an
overlying landowner without registration required by the Board.

¢. Non-observance of any standard of beneficial use of water.

d. Failure of the appropriator to keep and submit a record of water withdrawal.

e. Failure to comply with any of the terms or conditions in a water permit or a
water rights grant

£ Unauthorized use of water for a purpose other than that for which a right or
permit was granted

g. Construction or repair of any hydraulic work or structure without duly
approved plans and specifications, when required

h, Failure to install a regulating and measuring device for the control of the
volume of water appropriated.

Unauthorized sale, lease, or transfer of water and/or water rights.

j. Failure to provide adequate facilities to prevent or control diseases when
required by the Board in the construction of any work for the storage,
diversion, distribution and utilization of water.

k. Drilling of a well without permission of the Board.

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Utilization of an existing well or pond or spreading of water for recharging
subterranean or groundwater supplies without permission of the Board
Violation of or non-compliance with any order, rule, or regulation of the
Board.

Ilegal taking or diversion of water in an open canal, aqueduct or reservoir.
Malicious destruction of hydraulic works or structures valued at not exceeding
Fifty Thousand Pesos (P50, 000.00).

2. For water supply and sewerage violations:

a

b.

Operation of water supply and sewerage system without Certificate of Public
Convenience

Unauthorized sale, lease, or transfer of Certificate of Public Convenience
and/or management and operation of water supply and/or sewerage system.
Violation of any rules and regulations prescribed by the Board in the operation
of waterworks and sewerage system,

‘The fines herein prescribed shall be increased by 10% for every five years to compensate for
inflation and (© maintain deterrent effect of such fine.

Section 119, A. A fine not exceeding Thirty Thousand Pesos (P30,000.00) or imprisonment
for not more than three (3) years, or both such fine and imprisonment, in the discretion of the
Court, shall be imposed upon any person who commits any of the following acts:

2.
3;
4.

Appropriation of water without a water permit, unless such person is expressly
exempted from securing a permit by the provisions of this Act

Unauthorized obstruction of an irrigation canal

Cultivation of a river bed, sand bar or tidal flat without permission.

Malicious destruction of hydraulic works or structure valued at not exceeding,
Two Hundred Fifty Thousand Pesos (P250, 000.00).

B, A fine exceeding Thirty Thousand Pesos (P30,000.00) but not more than Sixty
Thousand Pesos (P (60,000.00) or imprisonment exceeding three (3) years but not more than
six (6) years, or both such fine and imprisonment in the discretion of the Court, shall be
imposed on any person who commits any of the following acts;

1
2.

3.
4.

Unauthorized operation of waterworks and sewerage system
Distribution for public consumption of waste water which adversely affects
the health and safety of the public.

Excavation or enlargement of the opening of a hot spring without permission.
Unauthorized obstruction of a river or waterway, or occupancy of a river bank
or seashore without permission.

Establishment of a cemetery or a waste disposal area near a source of water
supply or reservoir for domestic or municipal use without permission.
Constructing, without prior permission of the government agency concerned,
works that produce dangerous or noxious substance, or performing acts that
result in the introduction of sewage, industrial waste, or any substance that
pollutes a source of water supply.

Dumping mine tailings and sediments into rivers or waterways without
permission.

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8. Malicious destruction of hydraulic works or structure valued more than Two
Hundred Fifty Thousand Pesos (P250,000.00) but not exceeding One Million
Pesos (P1,000,000.00)

C. A fine exceeding Sixty Thousand Pesos (P60,000.00) but not more than One Hundred
Thousand Pesos (P100,000.00) or imprisonment exceeding six (6) years but not more than
twelve (12) years, or both such fine and imprisonment, in the discretion of the Court shall be
imposed upon any person who commits any of the following acts

1. Misrepresentation of citizenship in order to qualify for water permit or
Certificate of Public Convenience.

2. Malicious destruction of a hydraulic works or structure, valued at more than
One Million Pesos (P 1,000,000.00).

Section 120. If the offense is committed by a corporation, trust, firm, partnership, association
or any other juridical person, the penalty shall be imposed upon the President, General
Manager, and other guilty officer or officers of such corporation, trust firm, partnership
association or entity, without prejudice to the filing of a civil action against said juridical
person. If the offender is an alien, he shall be deported after serving his sentence, without
further proceedings.

After final judgment of conviction, the Court upon petition of the prosecuting attomey in the
same proceedings, and after due hearing, may, when the public interest so requires, order the
suspension or dissolution of such corporation, trust, firm, partnership, association or juridical
person

Section 121. All actions for offenses punishable under Section 119 of this Act shall be
brought before the proper court.

Section 122. Actions for offenses punishable under this Act by a fine of not more than Thirty
‘Thousand Pesos (P30,000.00) or by an imprisonment of not more than three (3) years, or both
such fine and imprisonment, shall prescribe in five (5) years; those punishable by a fine
exceeding Thirty Thousand Pesos (P30,000.00) but not more than Sixty Thousand Pesos
(P60,000.00) or an imprisonment exceeding three (3) years but not more than six (6) years, or
both such fine and imprisonment, shall prescribed in seven (7) years; and those punishable by
a fine exceeding Sixty Thousand Pesos (P60,000.00) but not more than One Hundred
Thousand Pesos (P100,000.00) or an imprisonment exceeding six (6) years but not more than
twelve (12) years, or both such fine and imprisonment, shall prescribed in ten (10) years.

CHAPTER XI
FINAL PROVISIONS

Section 123. When priority in time of appropriation from a certain source of supply cannot be
determined, the order of preference in the use of the waters shall be as follows:

a. Domestic
b. Municipal
©. hrrigation

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4, Power generation
¢. Fisheries

f. Livestock raising
g. Industrial use

h. Commercial

i, Recreation, and

J. Other uses

In case conflict may arise in the determination of the priority as mentioned above,
determination of priority may be taken from the date of the approval thereof.

When two or more permittees with the same source and purpose have the same date of
approval, priority in the utilization of water shall be reckoned from the date of filing of the
application without prejudice t0 whatever arrangement that may be agreed upon by the
permittees.

Section 124. No vested or acquired right to the use of the water can arise from acts or
‘omissions which are against the law or which infringe upon the rights of others.

Section 125, Existing contracts under the regime of old laws, if they are valid in accordance
therewith, shall be respected, subject to the limitations established in this Act. Any
modification or extension of existing contracts after the promulgation of this Act, shall be
subject to the provisions hereof.

Section 126, Arbitration provision. All conflicts, controversies and issues related to water
rights and Certificate of Public Convenience applications shall be subject to arbitration in
accordance with the provisions of RA 9285 otherwise known as “Altemative Dispute
Resolution Act of 2004”.

Section 127. Implementing rules and regulations shall be promulgated by the Department of
Environment and Natural Resources within 90 days from the approval of this Act

Section 128. General and Transitory Provisions. A substantial compliance with the
requirements of this Act shall be sufficient to give effect to all the rules, orders and
regulations of the Board and they shall not be declared inoperative, illegal or void for any
omission of a technical nature in respect thereto.

Section 129. If any provision or part of this Act, or the application thereof to any person or
circumstance, is declared unconstitutional or invalid for any reason, the other provisions or
parts therein shall not be affected

Section 130. The following laws, parts and/or provisions of laws are hereby repealed:
The provisions of the Spanish Law on Waters of August 3, 1866, the Civil Code of Spain in
1889 and the Civil Code of the Philippines (R.A. 386) on ownership of waters, easements

relating to waters, use of public waters and acquisitive prescription on the use of waters,
which are inconsistent with the provisions of this Code;

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The provisions of R.A. 6395, otherwise known as the Revised Charter of the National Power
Corporation, particularly section 3, paragraph (f), and section 12, insofar as they relate to the
appropriation of waters and the grant thereof;

The provisions of Act No. 2152, as amended, otherwise known as the Irrigation Act, section
3, paragraph (k) and (m) of P.D. No. 813, R.A. 2056; Section 90, C.A. 137;

‘The Provisions of PD 198, Local Government Code, IPRA and NIPAS Act relating to
‘ownership, appropriation, utilization, exploitation, development, conservation and protection
of water resoure

The provisions of Public Service Law relating to operation & management of water utilities
and sewerage system; and

All Decrees, Laws, Acts, parts of Acts, rules of Court, Executive Orders, and administrative
regulations which are contrary to or inconsistent with the provisions of this Act.

Section 131. This Act shall take effect immediately after its publication in two (2)

Newspapers of general circulation,

Approved

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