Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____________ 
Introduced by 
HON. CHRISTOPHERSON “COCO” M. YAP 
AN ACTESTABLISHING THE NATIONAL FRAMEWORK FOR WATER 
RESOURCE MANAGEMENT AND CREATING THE DEPARTMENT OF 
WATER RESOURCES AND THE WATER REGULATORY COMMISSION, 
DEFINING THEIR MANDATES, POWERS AND FUNCTIONS, AND 
APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE
This measure aims to ensure and speed up universal access to water supply and 
sanitation services by giving priority to infrastructure and public works that can stand 
up to the effects of climate change and by making it easier for the private sector to get 
involved. It does this by creating the Department of Water Resources, the Water 
Pollution Adjudication Board, the National Water Sector Policy Board, and the Water 
Regulatory Commission. These four groups will take over the powers and functions 
related to water that are now handled by about 30 different government agencies and 
bodies. This will make doing business easier. 
The Department of Water Resources will be the main agency in charge of mapping all 
water resources, planning, making policies, and taking care of their ownership, use, 
exploitation, development, protection, and sustainability. 
Aside from approving the National Water Resources Management Framework Plan, the 
National Water Policy Board, shall act as a policy advisory body to the President on all 
things relating to water management and supply, including the declaration of a state of 
calamity in areas affected by water supply. 
November 23, 2022
8:00 am
6306


The Water Regulatory Commission will inherit the economic regulatory functions of the 
MWSS, NWRB, LWUA, SBMA, PEZA, and TIEZA and exercise quasi-judicial functions 
to properly carry out the mandates of their office. 
On July 28, 2010, the United Nations General Assembly declared access to safe and 
clean drinking water and sanitation to be a human right. 
With global warming, pollution, and a rising population, posing a major threat to this 
right, the need to adopt Integrated Water Resource Management as a national 
framework for planning, policymaking, and management of our water resources is 
paramount. 
In light of the foregoing, ug sa ngalan sa Serbisyong Tinuoray, the undersigned urges 
the immediate approval of this bill. 
 
 
 
CHRISTOPHERSON “COCO” M. YAP 
Representative, Second District of Southern Leyte 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____________ 
Introduced by 
HON. CHRISTOPHERSON “COCO” M. YAP 
AN ACTESTABLISHING THE NATIONAL FRAMEWORK FOR WATER 
RESOURCEMANAGEMENT AND CREATING THE DEPARTMENT OF 
WATER RESOURCES AND THE WATER REGULATORY COMMISSION, 
DEFINING THEIR MANDATES, POWERS AND FUNCTIONS, AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. This Act shall be known as the “National Water Act.” 
1 
SEC. 2. Declaration of Policy. —  Access to water is a basic human right. All water 
2 
belongs to the State which shall govern its development and utilization for the 
3 
people. 
4 
In pursuit of this policy, this Act shall have the principal objective of ensuring 
5 
and accelerating universal access to water supply and sanitation services, in a 
6 
regulatory regime that encourages responsible private sector participation, and 
7 
shall foster and prioritize the establishment of infrastructure and public works 
8 
that adopt innovative solutions and international best practices to address the 
9 
challenges of climate change. Further, all water and water treatment 
10 
infrastructure projects are hereby declared as projects imbued with national 
11 
interest. 
12 
SEC. 3. Definition of Terms. – As used in this Act: 
13 
(a)
Bulk water supplier refers to any entity, natural or juridical,
14 
whether public or private, supplying or intending to supply large
15 
quantities of raw or treated water to buyers who will use these for
16 
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their own consumption, such as industrial companies, or for retail 
17 
distribution to consumers such as water service providers or real 
18 
estate developers managing their own distribution network. 
19 
(b) 
Environmental services refer to qualitative functions of natural non- 
20 
produced assets of land, water, and air, including related 
21 
ecosystems, and their biota, and which may be categorized into 
22 
three basic types: 
23 
(1) disposal services which reflect the functions of the 
24 
natural environment as an absorptive sink for residuals;  
25 
(2) productive services which reflect the economic 
26 
functions of providing natural resource inputs and 
27 
space for production and consumption, and  
28 
(3) consumer or consumption services which provide for 
29 
physiological as well as recreational and related needs 
30 
of human beings. 
31 
(c) 
Flood Control refers to methods, acts, and protocols to be observed 
32 
in order to prevent and reduce the detrimental and catastrophic 
33 
effects of flood waters which include sediment-laden or turbid 
34 
flows, and hyper- concentrated flows or debris flows. 
35 
(d) 
Flood Risk Management (FRM) refers to such acts of defining and 
36 
determining the appropriate methods, acts, and protocols aimed at 
37 
preventing and reducing the risk of incurring loss of both life and 
38 
property due to flood waters. Flood risk management consists of a 
39 
cycle of prevention, mitigation, adaptation, preparedness and early 
40 
warning, and response and recovery. The elements of FRM include: 
41 
integrating land-use planning and coastal zone management into 
42 
water management; adopting a holistic approach so that FRM is 
43 
part of wider risk or multi- hazard management of earthquakes, 
44 
landslides, and storm surges; managing risk and uncertainty as a 
45 
whole so it not only mitigates hydrological uncertainties but also 
46 
social, economic and political uncertainties on account of human 
47 
behavior and the cultural dimensions of FRM. 
48 


(e) 
Gender Equality refers to the principle asserting the equality of men 
49 
and women and their right to enjoy equal conditions realizing their 
50 
full human potentials to contribute to and benefit from the results 
51 
of development, and with the State recognizing that all human 
52 
beings are free and equal in dignity and rights. 
53 
(f) 
Infrastructure and public works refer only to wholly or primarily 
54 
water- related projects and does not include projects that do not fall 
55 
within the purview of the objectives, power and duties of the 
56 
Department of Water Resources created under this Act. 
57 
(g) 
Integrated Water Resource Management (IWRM) refers to a 
58 
systematic, collaborative, and multi-stakeholder process which 
59 
promotes the coordinated development and management of water, 
60 
land, and related resources within geophysical boundaries in order 
61 
to maximize the resultant economic and social welfare in an 
62 
equitable manner, and without compromising the sustainability of 
63 
vital ecosystems. 
64 
(h) 
Levels of Water supply refer to communal sources of water 
65 
described according to location and size of the recipient human 
66 
settlement as follows: 
67 
(1) Level I or the point source is a protected well or a 
68 
developed spring with an outlet but without any 
69 
distribution system, generally adaptable to rural and 
70 
upland areas where houses are thinly scattered, and is 
71 
a facility which usually serves an average of 15 
72 
households. 
73 
(2) Level II or the communal faucet system or stand posts 
74 
is a system composed of a water source, a reservoir, a 
75 
piped distribution network, and communal faucets 
76 
where one faucet serves 4 to 6 households and is 
77 
generally suitable for rural and urban fringe areas 
78 
where houses are clustered densely to justify a simple 
79 
piped system. 
80 


(3) Level III or the waterworks system or individual house 
81 
connections is a system with a water source, a reservoir, 
82 
a piped distribution network and household taps, 
83 
suitable for densely populated urban areas. 
84 
(i) 
License refers to the Water Supply and/or Sanitation Services 
85 
Operating License that the Water Regulatory Commission is 
86 
authorized to grant and issue to service providers. 
87 
(j) 
Licensee refers to a service provider to whom a license is granted or 
88 
issued by the Water Regulatory Commission. 
89 
(k) 
 Missionary Water Services refer to water supply or services to areas 
90 
that have no existing safe water supply and services due to 
91 
geographic limitation or absence of economic and market viability. 
92 
(l) 
National Resources Management Plan (NWRMP) refers to a policy 
93 
document that contains a framework to guide the development and 
94 
management of all the water resources in the Philippines, the general 
95 
strategies and work to be pursued to ensure the sustainability of the 
96 
resource towards water security, and top-level direction on the 
97 
utilization of existing water resources in line with national 
98 
development plans, policies, and programs in accordance with the 
99 
IWRM framework. The NWRMP shall also include a water 
100 
infrastructure development program or all waters of the country as 
101 
well as provide general guidance on how this shall be supported 
102 
within an integrated financing framework that can draw from 
103 
public, private, and international development funding sources. 
104 
(m) 
Net Waste Load refers to the difference of the initial waste load of 
105 
the abstracted water and the waste load of the final effluent 
106 
discharge of an industry. 
107 
(n) 
Regulatory Units refer to the offices established under Section 20 of 
108 
this Act which issue licenses authorizing the operation of Water 
109 
Supply and Sanitation Services, and provide, review, determine, fix, 
110 
and approve water and sewerage tariffs, rates, and charges that 
111 
licensees may impose. 
112 


(o) 
River basin refers to an area of land drained by a stream or body of 
113 
fixed water and its tributaries which have a common outlet for 
114 
surface run-off. 
115 
(p) 
River Basin Organization (RBO)  refers to multi-stakeholder 
116 
organizations which plan, coordinate, and monitor activities within 
117 
a river basin cluster. 
118 
(q) 
Sanitation refers to the provision of facilities and services for the 
119 
safe management of human excreta, from toilet to containment, and 
120 
storage and treatment onsite or conveyance, treatment and eventual 
121 
safe end use or disposal, and includes the safe management of solid 
122 
waste and animal waste. 
123 
(r) 
Sediment management refers to control of sediment erosion and 
124 
deposition in rivers, reservoirs, and coastal zones through non-
125 
structural and structural measures and control works. 
126 
(s) 
Sustainable Development Goals (SDGs) also known as the 17 
127 
Global Goals refer to the universal call to action to end poverty, 
128 
protect the planet and ensure that all people enjoy peace and 
129 
prosperity by 2030 adopted by all United Nations Member States 
130 
in 2015. 
131 
(t) 
Septage is the liquid and solid material pumped from a septic tank, 
132 
cesspool, or other primary treatment source. 
133 
(u) 
Septage Management refers to the provision of proper collection, 
134 
treatment, and disposal of septage.\ 
135 
(v) 
Service Area refers to the area covered by the water distribution 
136 
system, sewerage, and lor septage management services. 
137 
(w) 
Service Provider refers to any entity, natural or juridical, whether 
138 
private or public, providing or intending to provide levels II L III 
139 
water supply, including bulk water suppliers, sewerage, septage 
140 
treatment, and disposal services for domestic, residential, industrial, 
141 
or commercial use. 
142 


(x) 
Sewage refers to water borne human or animal wastes, excluding oil 
143 
or oil waste, removed from residences, buildings, institutions, and 
144 
industrial and commercial establishments together with such 
145 
groundwater, surface water and storm waters as may be present 
146 
including such waste from vessels, offshore structures, other 
147 
receptacles intended to receive or retain waste or other places or the 
148 
combination thereof. 
149 
(y) 
Sewerage refers to any system or  network  of pipelines, ditches, 
150 
channels or conduits including pumping stations, lift stations and 
151 
force mains, service connections including other infrastructure, 
152 
devices, or appliances appurtenant thereto, which include the 
153 
collection, transport, pumping and treatment of sewage to a point 
154 
of disposal. 
155 
(z) 
Sewers refer to pipes or such other works or structures which are 
156 
built and constructed to carry, transport, and dispose sewage. 
157 
(aa) Social inclusion refers to the process of improving the terms for 
158 
disadvantaged individuals and groups to take part in society. 
159 
(bb) Tariffs refer to such amounts which may be charged by licensees for 
160 
their water supply and sanitation services based on principles, 
161 
standards, and guidelines established by the Department of Water 
162 
Resources. 
163 
(cc) Water Demand Management (WDM) refers to any method, 
164 
whether technical, economic, administrative, financial, or social 
165 
that will accomplish one or more of the following: 
166 
(1) Reduce the quantity or quality of water required to 
167 
accomplish a specific task; 
168 
(2) Adjust the nature of the task or the way it is undertaken so 
169 
that it can be accomplished with less water or with lower 
170 
quality water; 
171 
(3) Reduce the loss in quantity or quality of water as it flows 
172 
from source, through use, to disposal; 
173 


(4) Shift the timing of use from peak to off-peak periods; and 
174 
(5) Increase the ability of the water system to continue to serve 
175 
society during times when water is in short supply. 
176 
(dd) Water Districts refer to government-owned  and controlled 
177 
corporations organized under Presidential Decree No. 198, as 
178 
amended, created primarily to acquire, install, operate, maintain, 
179 
and improve water supply and distribution systems for domestic, 
180 
industrial and municipal uses of residents and to provide, maintain 
181 
and operate waste water collection, treatment and disposal facilities 
182 
within the boundaries of the district. 
183 
(ee) Water pollution refers to any alteration of the physical, chemical, 
184 
biological, or radiological properties of a body of water resulting in 
185 
the impairment of its purity or quality. 
186 
(ff) Water Resource refers to water under the ground or groundwater, 
187 
water above the ground such as surface water, run-offs, floods, 
188 
stormwater and urban drainage, treated wastewater, water in the 
189 
atmosphere or rain water, and the waters of the sea within the 
190 
territorial jurisdiction of the Philippines. 
191 
(gg) Water Resources Region refer to the contiguous clusters of river 
192 
basins which are grouped together according to the hydrological 
193 
boundaries, physiographic features, and homogeneity in climate, 
194 
whether or not they straddle different local government units, for 
195 
administrative purposes under the Department of Water Resources. 
196 
(hh) Water Service Provider (WSP)refers to the water district, any Local 
197 
Government Unit (LGU) - run water utility, Barangay Waterworks 
198 
and Sanitation Association (BWSA), Rural Waterworks Sanitation 
199 
Association (RWSA), cooperative and private sector entity that 
200 
provides water supply services to any given area. 
201 
(ii) Water supply service  refers to any activity comprising Levels I, II 
202 
and III water supply including bulk suppliers, suppliers to 
203 
subdivisions, and other water service providers. 
204 


CHAPTER II 
205 
THE DEPARTMENT OF WATER RESOURCES 
206 
SEC. 4. The Department of Water Resources. —  There is hereby created and 
207 
established the Department of Water Resources, hereinafter referred to as the 
208 
Department. 
209 
SEC. 5. Mandate of the Department. —  The Department shall be the primary agency 
210 
responsible for the comprehensive and integrated identification and mapping 
211 
of all water resources, planning, policy formulation, and management of the 
212 
ownership, appropriation, utilization, exploitation, development, and 
213 
protection of water resources in the Philippines to ensure the optimal use 
214 
thereof for domestic and municipal water supply, sanitation, irrigation, 
215 
hydropower, industry, navigation, flood management, and recreation except 
216 
fisheries or aquaculture. 
217 
The Department shall also be the primary agency responsible for the planning 
218 
and policy formulation towards the attainment of universal access to safe, 
219 
adequate, affordable, and sustainable water supply, and improved sanitation 
220 
services for all Filipinos. 
221 
The Department shall be the primary national agency to enforce Presidential 
222 
Decree No. 1067 otherwise known as The Water Code of the Philippines  and 
223 
Republic Act No. 9275, otherwise known as the Philippine Clean Water Act 
224 
of 2004. 
225 
The Department shall exercise the powers and functions of the defunct Pasig 
226 
River Rehabilitation Commission created under Executive Order No. 54 Series 
227 
of 1999 and abolished under Executive Order No. 93 Series of 2019, 
228 
specifically the following roles that were transferred to the Manila Bay Task 
229 
Force and DENR through the latter EO:  
230 
I. Update and take the lead in the overall implementation of the Pasig 
231 
River Rehabilitation Master Plan, which shall harness the Pasig River's 
232 
potential for transportation, recreation and tourism purposes while 
233 
undertaking the rehabilitation and restoration of its maritime life; and 
234 


II. Ensure that the easements provided for in the Civil Code and other 
235 
relevant laws are enforced, especially in all the esteros and waterways 
236 
that drain into the Pasig River as well as abate the dumping of untreated 
237 
industrial wastewater and sewerage into the river, including all acts and 
238 
omissions in violation of Presidential Decree (PD) No. 984, s. 1976, as 
239 
amended entitled, Providing For The Revision Of Republic Act No.  
240 
3931, Commonly Known As The Pollution Control Law, And For 
241 
Other Purposes, PD No. 274, s. 1973 entitled, Pertaining To The 
242 
Preservation, Beautification, Improvement And Gainful Utilization Of 
243 
The Pasig River, Providing For The Regulation And Control Of 
244 
Pollution Of The River And Its Banks In Order To Enhance Its 
245 
Development, Thereby Maximizing Its Utilization For Socio- 
246 
Economic Purposes, and other related laws. 
247 
SEC. 6. Guiding Principles. —  In the pursuit of its mandate, the Department shall be 
248 
guided by the following key principles: 
249 
(a) The concept of good water governance for water security and 
250 
sufficiency shall be adopted across all levels of governance by 
251 
stakeholders such as the national government, local government, non-
252 
government organizations, private organizations, individuals, even 
253 
global societal actors, and in various sectors such as water supply, 
254 
irrigation, fisheries, hydropower, navigation, ecosystem services, flood 
255 
management, climate change, and recreation. It shall entail publicly 
256 
transparent, socially accountable, and multi-stakeholder participatory 
257 
water policy planning, management, and decision-making processes. 
258 
(b) Access to safe water supply and improved sanitation is a human right 
259 
that needs to be fulfilled and protected. 
260 
(c) Integrated Water Resource Management (IWRM) shall be adopted as 
261 
the basic framework which is the coordinated development and 
262 
management of water, land, and related resources within hydrological 
263 
boundaries to optimize economic and social welfare without 
264 
compromising the sustainability of vital ecosystems. The IWRM 
265 
Framework shall include an enabling environment that utilizes proper 
266 
policies, legal instruments, and institutional frameworks for effective 
267 


implementation, participatory and collaborative water policy and 
268 
management decisions, and management instruments for efficient use 
269 
of updated and accurate data, science-based decision support systems, 
270 
proper information, education, communication (IEC) programs, 
271 
assessment and allocation tools, or regulatory functions. It shall observe 
272 
the mutual accountability mechanism among stakeholders at the 
273 
national, regional, and global levels reinforcing multi-stakeholder 
274 
decision-making following a framework with specific, measurable, 
275 
attainable, relevant, and timely actions. 
276 
(d) Each river basin has its unique characteristics relating to the physical, 
277 
socio cultural, and other aspects, and water management shall be 
278 
performed at river-basin level, involving all the stakeholders at that 
279 
particular river basin. 
280 
(e) Integrated and accurate data collection and analysis and the use of 
281 
scientific decision support systems shall be undertaken in water 
282 
resources management including flood modeling and warning systems 
283 
that are essential for an effective, efficient, and sustainable water 
284 
resources management system. 
285 
(f) The development of water resources shall include strategies for the 
286 
mitigation of water-related hazards and climate change adaptation. 
287 
(g) Water resources and services should be provided where they are 
288 
intended and most needed so that water is fairly and sustainably 
289 
managed. 
290 
(h) The proper operation and maintenance of waterworks systems resulting 
291 
in the uninterrupted and adequate supply and distribution of potable 
292 
water for domestic and other purposes, and the proper operation and 
293 
maintenance of sewerage systems which are essential services to public 
294 
health and safety, are to be ensured at all times. The State shall therefore 
295 
supervise and control the establishment, operation, and maintenance of 
296 
such systems. 
297 
SEC. 7. Objectives of the Department. —  The Department shall: 
298 


(a) Promote and adopt water demand management as a national policy to 
299 
ensure that water is optimized, that water efficiency and conservation 
300 
become a way of life, that the recycling and reuse of water and treated 
301 
wastewater are widely practiced, that water is properly priced to 
302 
encourage efficient use and conservation and that rainwater, flood 
303 
waters, and run-offs are captured or harvested, stored and treated for 
304 
future use; 
305 
(b) Prioritize and seek the immediate attainment of universal access to safe, 
306 
adequate, affordable and sustainable water supply and improved 
307 
sanitation services for all Filipinos in a manner consistent with the 
308 
protection, preservation, and revival of the quality of the country's 
309 
water resources, and to adopt all needed measures to advance the right 
310 
of the people to a balanced and healthful ecology in accord with the 
311 
rhythm and harmony of nature. 
312 
(c) Strengthen and coordinate integrated water resources management 
313 
planning and policy making to ensure sustainable and fair allocation 
314 
and efficient use of water resources among competing uses and users; 
315 
(d) Ensure that integrated water resources management is strongly 
316 
coordinated with land use and coastal and multi-hazard planning and 
317 
management; 
318 
(e) Develop sustainably, and manage water sources and water resources 
319 
toward water security, taking into consideration water, land, and 
320 
related resources aimed at increasing water dependability for different 
321 
uses, optimizing economic benefits and social welfare without 
322 
compromising the sustainability of vital environmental systems; 
323 
(f) Strengthen and coordinate policy making and planning towards 
324 
ensuring the availability of water for food security and energy security, 
325 
as well as towards the protection of communities and environments 
326 
against flood and other water induced hazards including sediment 
327 
hazards; 
328 


(g) Ensure that the strategy for water resources development and 
329 
conservation is participatory, and that planners, policymakers and 
330 
users including community members are involved at all levels; 
331 
(h) Develop a standardized pricing framework for water use that accounts 
332 
for environmental externalities; and 
333 
(i) Ensure that all sources of water, including surface water, groundwater, 
334 
rainwater and floodwater are identified, mapped, monitored, 
335 
conserved and managed for productive use and the resulting 
336 
wastewater is managed properly, reused, and responsibly disposed of 
337 
following approved environmental standards. 
338 
SEC. 8. Powers and Functions of the Department. —  The Department shall have the 
339 
following powers and functions: 
340 
I. Policymaking and Planning 
341 
a. Ensure that Integrated Water Resources Management (IWRM) 
342 
is adopted as the strategic framework for water management 
343 
policymaking and planning in the country and coordinate the 
344 
implementation, promotion, revision and enhancement of 
345 
IWRM plans; 
346 
b. Formulate policies, strategies, and targets in coordination with 
347 
other relevant entities to meet the goals and objectives for water 
348 
supply and sanitation, water quality, irrigation, hydropower, 
349 
flood control, stormwater utilization, and urban drainage. Such 
350 
policies shall, among other guidelines, integrate the issues of 
351 
water and sanitation, food security, energy, environment and 
352 
flood control, and climate change; 
353 
c. Formulate and develop policies to promote universal access to 
354 
safe, adequate, affordable, and sustainable water supply, and 
355 
improved sanitation services for all Filipinos; 
356 
d. Regularly update, every five years or as deemed necessary by the 
357 
Department, and in consultation with other agencies and 
358 


stakeholders, the NWRMP following the IWRM framework 
359 
and integrate therein a national land use plan; 
360 
e. Undertake river basin survey, inventory and appraisal of water 
361 
and related resources, and develop comprehensive basin-wide 
362 
plans of storage, retardation, and control to maximize 
363 
conservation and multipurpose use of water in the basin; 
364 
f. Conduct continuing hydrological and hydrometeorological 
365 
surveys and studies of the country's renewable water supply, and 
366 
establish, operate, and maintain observation station networks 
367 
with a view towards formulating long-term policies to balance 
368 
the sustainability and optimal multiple use of water resources, 
369 
defining the hydrologic boundaries of basins of the existing 
370 
water supply sources and developing or updating and 
371 
implementing countrywide comprehensive basin-wide master 
372 
plans; 
373 
g. Strengthen and coordinate policy making and planning for flood 
374 
management, integrated with stormwater or urban drainage and 
375 
appropriate retention or retarding basins in order to harvest and 
376 
reuse water, and to plan against, prevent, and minimize the 
377 
detrimental and catastrophic effects of flooding; 
378 
h. Assist and provide the National Economic and Development 
379 
Authority (NEDA) with the required data and input from the 
380 
water sector in the formulation of the country's short-term and 
381 
long-term strategic development plans and actions, and 
382 
recommend to the NEDA Board the adoption of general policies 
383 
and guidelines for water resources development; 
384 
i. Review, approve, and provide oversight over all water-related 
385 
development plans and programs of any agency within the 
386 
context of the NWRMP, and overall national plans and 
387 
programs; 
388 
j. Develop and implement, in coordination with other relevant 
389 
agencies, 
effective 
codes, 
standards, 
benchmarks, 
and 
390 
reasonable guidelines to ensure the safety of all public and 
391 


private water structures in the country, and assure efficiency and 
392 
proper quality in the construction of water, sanitation, 
393 
irrigation, 
hydropower, 
flood 
control 
and 
drainage 
394 
infrastructure; 
395 
k. Ensure that gender equality, social inclusion, environmental 
396 
protection, climate resiliency, and disaster risk reduction are 
397 
integrated into any water resource management planning, policy 
398 
making, and the design and construction of water infrastructure;  
399 
l. Ensure that the planning and design of water infrastructure 
400 
considers the highest efficiency and most appropriate 
401 
technology 
and 
quality, 
in 
accordance 
with 
national 
402 
development objectives; 
403 
m. Review existing guidelines appropriate for private sector 
404 
participation in the water sector and submit recommendations 
405 
to the Public-Private Partnership (PPP) Center of NEDA and 
406 
other concerned agencies to promote and enable more PPPs in 
407 
the sector; 
408 
n. Build a central repository of water data and effect inter-sectoral, 
409 
inter- agency, and inter-departmental coordination on all 
410 
aspects of data gathering and management for water resources 
411 
development planning and compel the submission of statistics 
412 
and data on water utilization with the aim of operationalizing 
413 
the integrated approach to water resources management; 
414 
o. Ensure the effective implementation of all the provisions of 
415 
Republic Act No. 9275, Presidential Decree No. 1067, and 
416 
Sections 9, 10, 11, 12 L 13, Chapter II of Presidential Decree 
417 
No. 856, otherwise known as the Code on Sanitation of the 
418 
Philippines; 
419 
p. Promote Philippine participation in information sharing and 
420 
education on best practices in support of international efforts to 
421 
achieve universal access to safe water and improved sanitation; 
422 
and the integration of water, energy, environment and food 
423 
security; and 
424 


q. Issue and promulgate rules, regulations and guidelines as may 
425 
be necessary to implement and enforce its powers and functions 
426 
under this Act. 
427 
II. Resource Regulation 
428 
a. Manage and conserve the country's water resources to ensure 
429 
the optimal use thereof for domestic water supply, sanitation, 
430 
irrigation, 
hydropower, 
navigation, 
flood 
control, 
and 
431 
recreation purposes, and enhance and maintain water quality, 
432 
conserve watersheds, control water pollution, and restore the 
433 
environment, without compromising the natural ecosystem 
434 
functions and services; 
435 
b. Regulate and control the utilization, abstraction, diversion and 
436 
development of water resources, taking in consideration their 
437 
equitable 
distribution 
among 
competing 
demands 
and 
438 
determine the standards of beneficial and priority uses of water 
439 
in times of crisis and national emergencies; 
440 
c. Formulate, promulgate, and enforce rules and regulations for 
441 
the development and optimum use of water resources and its 
442 
administration and management, including coherent water 
443 
protocols, operating rules of all existing and future water 
444 
infrastructure; general criteria, methods and standards for basic 
445 
data collection and project identification, formulation and 
446 
planning, and appropriate sanctions to be imposed for non-
447 
compliance; 
448 
d. Regularly review regulations prescribed by any government 
449 
agency pertaining to water use, exploitation, development, and 
450 
conservation or protection of waters, water resources, and 
451 
watershed or basin areas with respect to this Act; 
452 
e. Impose fees or charges, as may be deemed necessary for water 
453 
resources conservation and protection, such as: 
454 
1. Polluter's Fee, which shall be based on the net waste 
455 
load depending on the wastewater charge formula 
456 
pursuant to Republic Act No. 9275; 
457 


2. Raw water price, which shall take into account, among 
458 
others, the scarcity of water; and 
459 
3. Appropriate payment structures for environmental 
460 
services. 
461 
f. Deputize LGUs to collect the national fees or charges for 
462 
resource regulation within their respective jurisdictions; 
463 
g. Collect, regularly update, monitor, and analyze water resources 
464 
data including climatology, hydrological and other water-
465 
related data and ensure that such data is easily accessible by 
466 
relevant and authorized users; 
467 
h. Establish, operate, and maintain observation station networks 
468 
and a centralized water resources data center for the scientific 
469 
survey and appraisal of surface and groundwater potentials of 
470 
the country, and determine the annual renewable water 
471 
available per water resources region; 
472 
i. Maintain a database that will contain updated relevant 
473 
information on water data which will be accessible by relevant 
474 
and authorized users; 
475 
j. Develop and continuously update a computerized decision 
476 
support system that incorporates data management systems 
477 
relating to acquisition and database, model base in terms of 
478 
physical design, planning and decision models, and user-friendly 
479 
interface concerning graphical and visualization tools; 
480 
k. Conduct and promote special studies and research on water 
481 
economics and other water resources development and 
482 
management issues and concerns such as climate change, 
483 
weather modification, flood monitoring and modeling, 
484 
environmental quality, and desalination; and 
485 
l. Raise public awareness through information, education and 
486 
communications programs, and build capacities for informed 
487 


participation in water resources management at the national and 
488 
river-basin level. 
489 
III. Institutional Arrangement with Public Water Organizations 
490 
a. Develop guidelines including rules of partnership, between and 
491 
among the Department, field offices of national government 
492 
agencies, LGUs and other stakeholders in water resource 
493 
management, and facilitate the establishment of multi-
494 
stakeholder river basin organizations (RBOs) per river basin, 
495 
and strengthen and support existing RBOs and monitor their 
496 
activities; 
497 
b. Develop materials for capacity building and training of 
498 
prospective RBOs; 
499 
c. Authorize its representatives or any deputized agent to enter any 
500 
property of public dominion with or without prior notice and 
501 
consent, any private land, building or enclave, whether 
502 
inhabited or not, for the purpose of conducting hydrologic 
503 
surveys and investigations, including assessing and evaluating 
504 
the conditions of water facilities installed, and determining 
505 
compliance with water laws and standards; 
506 
d. Provide technical assistance to water users including farmers, 
507 
communities, and LGUs and other water service providers 
508 
(WSP) whether directly or in coordination with other agencies 
509 
on all aspects of integrated water resources management; 
510 
e. Respond to consumer complaints, and ensure the adequate 
511 
promotion of consumer interests; 
512 
f. Deputize agents, whether from the public or private sector, to 
513 
assist in the performance of any of the powers and functions of 
514 
the Department; 
515 
g. Appoint, hire, and maintain adequate staff and personnel, 
516 
advisers or consultants with suitable qualifications and 
517 


experience, as necessary, subject to existing rules and 
518 
regulations. 
519 
IV. Coordination 
520 
a. Coordinate and integrate water resources development activities 
521 
of the country within the context of national plans and policies 
522 
for social and economic development; 
523 
b. Coordinate with other government agencies, universities, 
524 
academe and private professional groups in all aspects of data 
525 
gathering, the conduct of special studies and research on all 
526 
related aspects of water resources management and development 
527 
such as climate change, environmental quality, desalination, and 
528 
the development of operating strategies, procedures, and 
529 
protocols and accompanying computerized decision tools for 
530 
major water facilities; 
531 
c. Coordinate with the concerned and relevant agencies engaged in 
532 
flood control, flood risk management, and drought risk 
533 
management; and 
534 
d. Coordinate proactively with LGUs to ensure the integration of 
535 
water resources development plans into their comprehensive 
536 
land use plans (CLUPs), Comprehensive Development Plans 
537 
(CDPs) or Provincial Physical Framework and Development 
538 
Plan (PPFDP). 
539 
V. Other Functions\ 
540 
a. Create 
when 
necessary, 
water 
resource 
subsidiaries, 
541 
instrumentalities, and entities to engage in water transmission, 
542 
water distribution, waste water treatment and management, and 
543 
sanitation in accordance with existing relevant laws. 
544 
b. Enter into contracts, joint venture agreements or understanding, 
545 
public private partnerships, and memorandum of agreements or 
546 
understanding, either domestic or foreign, relating to investment 
547 
and financing water- related projects, under such terms and 
548 


conditions as the Department may deem proper and reasonable 
549 
subject to existing laws. 
550 
c. Exercise such other powers and functions necessary or incidental 
551 
to the effective administration and management of the country's 
552 
water resources. 
553 
SEC. 9. Secretary of the Department of Water Resources. —  The authority and 
554 
responsibility for the exercise of the mandate of the Department and for the 
555 
discharge of its powers and functions shall be vested in the Secretary of the 
556 
Department, hereinafter referred to as the Secretary, who shall: 
557 
(a) Advise the President on the promulgation of executive or administrative 
558 
orders, regulations, proclamations, and other issuances relative to 
559 
matters under the jurisdiction of the Department; 
560 
(b) Establish the policies and standards for the operation of the Department 
561 
pursuant to the President's guidelines; 
562 
(c) Promulgate rules and regulations necessary to carry out the objectives, 
563 
policies, and functions of the Department;\ 
564 
(d) Exercise supervision and control over all bureaus and offices under the 
565 
Department; 
566 
(e) Supervise all attached agencies and corporations in accordance with 
567 
law; 
568 
(f) Represent the Department in contracts, awards, and other similar 
569 
agreements; 
570 
(g) Delegate authority for the performance of any power or function, as 
571 
defined herein to officials and employees under his direction as deemed 
572 
appropriate; 
573 
(h) Act as the Chairperson of the governing board of the attached agencies 
574 
of the Department; 
575 


(i) Designate and appoint officers and employees of the Department, 
576 
excluding the Undersecretaries, Assistant Secretaries, and Regional and 
577 
Assistant Regional Directors, in accordance with the civil service laws, 
578 
rules and regulations; and 
579 
(j) Perform such other duties and responsibilities as may be provided by 
580 
law. 
581 
SEC. 10. Office of the Secretary. —  The Office of the Secretary shall be composed of 
582 
the Secretary, Undersecretary, Assistant Secretary, and the Secretary's 
583 
immediate staff. 
584 
SEC. 11. Undersecretaries. —  The Secretary shall be assisted by not more than five (5) 
585 
Undersecretaries, who shall be appointed by the President upon the 
586 
recommendation of the Secretary namely: Undersecretary for Resource 
587 
Regulation and Governance, Undersecretary for Inland Waters and Water for 
588 
Agriculture, Undersecretary for Resource Development, Undersecretary for 
589 
Planning and Policy and Undersecretary for Missionary Water, Indigenous 
590 
People, and Special Concerns. 
591 
The Secretary is hereby authorized to delineate and assign the respective 
592 
functional areas of responsibility of the Undersecretaries in accordance with 
593 
the mandate and objectives of the Department:  Provided, That no 
594 
Undersecretary shall be assigned purely to administrative responsibilities. 
595 
Within their respective functional areas of responsibility, the Undersecretaries 
596 
shall: 
597 
(a) Advise and assist the Secretary in the formulation and implementation 
598 
of the policies, plans, programs and projects of the Department; 
599 
(b) Supervise all the operational activities of the assigned units for which 
600 
the Undersecretary is responsible to the Secretary; and 
601 
(c) Perform such other functions deemed necessary as may be assigned or 
602 
delegated by the Secretary to promote efficiency and effectiveness in the 
603 
delivery of public services or as may be required by law:  Provided, 
604 
That the Undersecretary for Planning and Policy shall, in coordination 
605 


with the Planning and Policy Service, be primarily responsible for 
606 
advancing current efforts in attaining the ultimate goal of universal 
607 
access to water supply and sanitation systems, and sustainable 
608 
management of water resources under the SDGs, and the integration of 
609 
water, energy, environment and food security. 
610 
SEC. 12. Assistant Secretaries. —  The Secretary shall be assisted by six (6) Assistant 
611 
Secretaries to be appointed by the President of the Philippines upon the 
612 
recommendation of the Secretary: one each for Planning and Policy Service, 
613 
Decision 
Support 
System 
Service, 
Resource 
Regulatory 
Service, 
614 
Comptrollership and Financial Management Service, Legal and Legislative 
615 
Service, and Administrative and Human Resources Management Service. 
616 
No person shall be appointed Secretary, Undersecretary and Assistant 
617 
Secretary of the Department unless the person is a citizen and resident of the 
618 
Philippines, of good moral character, of proven integrity, competence and 
619 
expertise in water resource management:  Provided,  That at least one (1) of 
620 
the Undersecretaries and at least two (2) of the Assistant Secretaries shall be 
621 
career officers. 
622 
SEC. 13. Organizational Structure. —  The Department shall be composed of the 
623 
following organizational units: 
624 
(a) Department Proper. —  The Department shall consist of the Office of 
625 
the Secretary, the Offices of the Undersecretaries and Assistant 
626 
Secretaries, the Internal Audit Office, the Public Affairs Office, the 
627 
Water Pollution Adjudication Board, the Planning and Policy Service, 
628 
Decision Support System Service, Administrative and Human 
629 
Resources Service, Legal and Legislative Service, Comptrollership and 
630 
Financial Management Service, Resource Regulation Service, and the 
631 
Water Resources Regional Offices. 
632 
(b) Attached agencies. —  The Department shall exercise administrative 
633 
supervision over the following agencies for purposes of policy and 
634 
program coordination, monitoring, and evaluation: 
635 


(1) The Local Water Utilities Administration (LWUA), whose 
636 
mandate, powers, and functions are defined in Presidential 
637 
Decree No. 198, otherwise known as the  Public Water Utilities 
638 
Act of  1973,  as amended,  shall be transferred from the 
639 
Department of Public Works and Highways and attached to the 
640 
Department. It shall continue to primarily function as a 
641 
specialized lending institution for the promotion, development, 
642 
and financing of local water utilities. In the implementation of 
643 
its functions, the LWUA shall: 
644 
i. 
Prescribe minimum standards and regulations in order to 
645 
assure acceptable standards of construction materials and 
646 
supplies, maintenance, operation, personnel training, 
647 
accounting and fiscal practices for local water utilities; 
648 
ii. 
Furnish technical assistance and personnel training programs 
649 
for local water utilities; 
650 
iii. 
Monitor and evaluate local water standards; and  
651 
iv. 
Effect system integration, joint investment and operation, 
652 
district 
annexation 
and 
de-annexation 
whenever 
653 
economically warranted as amended by Sec. 22, Presidential 
654 
Decree No. 768. 
655 
(2) The Metropolitan Waterworks and Sewerage System (MWSS), 
656 
whose mandate, powers, and functions are defined under 
657 
Republic Act No. 6234, as amended entitled,  An Act Creating 
658 
The Metropolitan Waterworks And Sewerage System And 
659 
Dissolving The National Waterworks And Sewerage Authority; 
660 
And For And For Other Purposes,  shall be transferred from the 
661 
DPWH and attached to the Department:  Provided,  That the 
662 
MWSS shall continue to facilitate the exercise by the 
663 
concessionaires of their responsibility; carry out accounting and 
664 
notification functions; monitor, report, and administer loans; 
665 
perform related functions in connection with existing projects; 
666 
manage and dispose its retained assets; and manage and operate 
667 
the Umiray-Angat Transbasin Project. 
668 


(3) The National Irrigation Administration (NIA), whose mandate, 
669 
powers, and functions are defined under Republic Act No. 3601 
670 
as amended by Presidential Decree No. 552 and Presidential 
671 
Decree No. 1702;  
672 
(4) The Laguna Lake Development Authority (LLDA), whose 
673 
mandate, powers and functions are defined under Republic Act 
674 
No. 4850, as amended entitled, An Act Creating The Laguna 
675 
Lake Development Authority, Prescribing Its Powers, Functions 
676 
And Duties, Providing Funds Therefor, And For Other Purposes 
677 
shall be transferred from the DENR and attached to the 
678 
Department. 
679 
The LLDA shall continue to serve as the lake management and 
680 
development authority similar to a multi-stakeholder river basin 
681 
organization and shall ensure the implementation of the Laguna 
682 
Lake Master Plan which shall be updated by the Department to 
683 
ensure alignment with the NWRMP. 
684 
Any other agency performing water resources management, 
685 
conservation and protection functions may be transferred to the 
686 
Department as the President deems necessary. 
687 
(c) Offices, Functions and Personnel to be Completely Subsumed under the 
688 
Department. —  The following offices with their powers, functions, 
689 
personnel, applicable funds and appropriations, records, equipment 
690 
and property shall be subsumed under the Department:  
691 
(1) The National Water Resources Board (NWRB) with all its 
692 
divisions and sections, whose mandate, powers and functions 
693 
are provided in Presidential Decree No. 424, as amended; 
694 
(2) The River Basin Control Office (RBCO) of the DENR whose 
695 
mandate, powers and functions are provided in Executive Order 
696 
No. 510 and Executive Order No. 816, as amended;  
697 
(3) The Manila Bay Coordinating Office (MBCO) of the DENR 
698 
which was strengthened by virtue of DENR Administrative 
699 
Order (DAO) 2011-01 to coordinate the efforts of the fourteen 
700 


(14) national agencies covered by the Mandamus Order of the 
701 
Supreme Court to rehabilitate Manila Bay; 
702 
(4) The Water Resources Management Division of the Bureau of 
703 
Soils and Water Management of the Department of Agriculture 
704 
(DA); 
705 
(5) The Water Supply and Sanitation Unit of the Department of the 
706 
Interior and Local Government (DILG); and 
707 
(6) The Water Quality Management Section of the Environmental 
708 
Management Bureau (EMB) of the DENR.\ 
709 
(d) Functions to be Transferred to the Department. —  The following 
710 
functions of the respective agencies, bureaus, and units shall be 
711 
transferred to the Department: 
712 
(1) The hydrological surveys and groundwater mapping function of 
713 
the Mines and Geosciences Bureau (MGB) of the DENR; 
714 
(2) The hydrological surveys monitoring of stream flow and water 
715 
data collection function of the Bureau of Design and Bureau of 
716 
Research and Standards of the DPWH; 
717 
(3) The protection and conservation of natural wetlands such as 
718 
lakes, marshes, swamps of the Biodiversity Management Bureau 
719 
of the DENR; 
720 
(4) The planning, programming, administration, monitoring, 
721 
management 
of 
the 
National 
Sewerage 
and 
Septage 
722 
Management Program (NSSMP) by the DPWH. 
723 
(5) The flood management planning and sediment management 
724 
function of the Flood Control Management Cluster of the 
725 
DPWH; 
726 
(6) The Water Resource Management Division and the water 
727 
research functions of the Soils and Water Research Division of 
728 
the Bureau of Soils and Water Management under the DA. All 
729 
soil-related functions shall be retained under the Bureau which 
730 
shall be renamed as the Bureau of Soils. 
731 


(e) Support Services. —  The Department shall create the following support 
732 
services: 
733 
(1) The Planning and Policy Service  shall provide the Department 
734 
with the capability to undertake water infrastructure 
735 
development planning and programming, and shall exercise the 
736 
following functions: 
737 
i. 
Advise the Secretary on all matters relating to water 
738 
resources planning; 
739 
ii. 
Assist the Undersecretary for Planning and Policy on all 
740 
matters related to the specific functions of the position; 
741 
iii. 
Formulate strategies and priorities for water resources 
742 
management and development consistent with national 
743 
development objectives, and initiate or undertake relevant 
744 
surveys for development planning;  
745 
iv. 
Develop and regularly update a comprehensive and 
746 
integrated National Water Resources Management Plan and 
747 
ensure its integration into existing land use plans; 
748 
v. 
Coordinate river-basin planning following the integrated 
749 
water resources management framework and the river-basin 
750 
approach;  
751 
vi. 
Formulate or update existing River Basin Master or 
752 
Comprehensive Plans which includes all aspects of water 
753 
management and development such as water supply and 
754 
sanitation, irrigation, flood control and stormwater or 
755 
urban drainage, drought risk management, water resource 
756 
development systems and other public water works projects, 
757 
including phasing of implementation;  
758 
vii. 
Identify, based on the river basin master plan, priority 
759 
packages for water infrastructure development per river 
760 
basin, including water supply, sanitation, irrigation, flood 
761 
control and stormwater or urban drainage, drought risk 
762 
management, water resource development systems and 
763 
other public works projects, package project proposals for 
764 


funding and prioritize project implementation and the 
765 
allocation of funds and other resources and undertake or 
766 
supervise and evaluate the conduct of feasibility studies and 
767 
project preparation thereof;  
768 
viii. 
Evaluate and appraise all regional and inter-regional 
769 
infrastructure water development plans and programs as to 
770 
their feasibility and consistency with approved strategies 
771 
and medium and long -term plans; 
772 
ix. 
Gather, analyze, and organize needed statistical data and 
773 
information;  
774 
x. 
Provide technical assistance related to its functions to the 
775 
other services, bureaus and the regional offices as needed; 
776 
xi. 
Conduct 
hydrological 
and 
hydraulic 
surveys 
and 
777 
assessments of surface waters; 
778 
xii. 
Develop general criteria and standards on project 
779 
investigation, formulation, planning; 
780 
xiii. 
Develop guidelines and standards on social inclusion in 
781 
water resources management and ensure policies, programs 
782 
and plans are compliant with the gender and development 
783 
framework of the government; 
784 
xiv. 
Coordinate closely with PAGASA for rainfall and other 
785 
climate data which shall be considered in the planning for 
786 
water resources development and management and for 
787 
various water infrastructure; and 
788 
xv. 
Perform such functions and activities, as may be mandated 
789 
by law, which are necessary for the effective attainment of 
790 
the abovementioned objectives. 
791 
(2) The Decision Support System Service  shall provide the 
792 
Department with water resource management tools and 
793 
computerized decision support system that incorporates a data 
794 
management system relating to acquisition and database and 
795 
model base in terms of physical design, planning and decision 
796 


models including services related to networking, data 
797 
management, and information and knowledge or learning 
798 
management systems for administrative and non-technical 
799 
support It shall provide the Secretary timely reports on the status 
800 
of various Department projects and activities. For this purpose, 
801 
it shall exercise the following functions: 
802 
i. 
Provide the Secretary the necessary data and processed 
803 
information to aid in policy and management decisions 
804 
under the mandate of the Department; 
805 
ii. 
Publish available real-time raw water data as well as verified 
806 
or validated water data in print or electronic form using 
807 
latest internet technology; 
808 
iii. 
Conduct and publish in print and/or electronic form, 
809 
standard data analysis such as basic statistical analysis, 
810 
trend analysis, analysis of runs, and cluster analysis; 
811 
iv. 
Develop 
and 
continuously 
update 
water 
resource 
812 
management, computerized decision support systems (DSS) 
813 
that incorporate data management systems relating to 
814 
acquisition and database, model base in terms of physical, 
815 
design, planning and decision models, and userfriendly 
816 
interface such as graphical and visualization tools. The DSS 
817 
is composed of: 
818 
a. a measurement or data acquisition system; 
819 
b. information or database management system; 
820 
c. analytical and numerical models for design, 
821 
planning, decision, or evaluation purposes, and 
822 
d. a user-friendly interface which includes graphical 
823 
interface or visualization tools. 
824 
v. 
Develop and maintain specific models to include the 
825 
following:  
826 
a. long-term climatologic and weather forecasting 
827 
model; 
828 


b. watershed models and river-flood plain models; 
829 
c. groundwater models and coupled to surface water 
830 
models; 
831 
d. flood forecasting model for major rivers; 
832 
e. optimization-simulation management models for 
833 
watershed conservation, conjunctive surface and 
834 
groundwater use, irrigation scheduling, normal and 
835 
emergency operations of multi-purpose reservoirs; 
836 
and 
837 
f. water quality and ecological models. 
838 
vi. 
Develop and administer the management information 
839 
system and knowledge systems of the Department to: 
840 
a. Retrieve, process, and monitor information on all 
841 
projects and activities in the web portal; 
842 
b. Conduct and apply systems and process engineering, 
843 
software 
development, 
software 
configuration 
844 
management;  
845 
c. Develop and manage its corporate database, unified 
846 
database for water industry, data warehouse, other 
847 
water information resources, library services and 
848 
document management and archiving services; 
849 
d. Develop 
and 
manage 
its 
Information 
and 
850 
Communications Technology (ICT) infrastructure 
851 
and 
ICT 
related-services 
including 
computer 
852 
networking and voice communications services and 
853 
data exchange, and 
854 
e. Manage the literacy and training services of the 
855 
Department on various ICT and, Knowledge 
856 
Management (KM) tools and applications, including 
857 
information and knowledge management. 
858 


vii. 
Perform such other related functions and activities which 
859 
are necessary for the effective administration of the 
860 
management information and knowledge systems of the 
861 
Department. 
862 
(3) The Administrative and Human Resource Service shall provide 
863 
the Department with services relating to human resources 
864 
development, personnel records, facilities maintenance, medical 
865 
and dental, security, property and procurement services, and 
866 
shall exercise the following functions: 
867 
i. 
Advise the Secretary on all matters relating to internal 
868 
administration and human resources management; 
869 
ii. 
Prepare 
and 
implement 
an 
integrated 
personnel 
870 
development plan that shall include provisions for merit 
871 
promotions, performance evaluation, job rotation, incentive 
872 
awards systems, and health and welfare services; 
873 
iii. 
Provide services related to human resource training, 
874 
education and development including manpower, career 
875 
planning and forecasting, and development of indigenous 
876 
training materials;  
877 
iv. 
Develop, establish, and maintain an efficient and cost-
878 
effective property procurement system and facilities and 
879 
coordinate or otherwise interface with relevant agencies, 
880 
whether government or private, for the purpose of 
881 
developing or upgrading the system;  
882 
v. 
Develop, establish, and maintain an efficient and effective 
883 
security system covering, among others, personnel, physical 
884 
installations, facilities, equipment, documents and materials 
885 
including the conduct of security investigations; 
886 
vi. 
Coordinate with the appropriate government agencies for a 
887 
more efficient conduct of administrative processes; 
888 
vii. 
Develop, establish, and maintain an efficient records system;  
889 


viii. 
Provide assistance in its area of specialization to the 
890 
Department Proper, bureaus and regional and water district 
891 
offices and, when requested, to the government agencies and 
892 
corporations attached to the Department; and Perform such 
893 
other related functions and activities which are necessary for 
894 
the effective management of the resources of the 
895 
Department, including its human resources. 
896 
(4) The Legal and Legislative Research Service shall provide the 
897 
Department with services on such legal affairs as contract letting 
898 
and litigation, legal and legislative research, complaints and 
899 
investigation, legal counselling and other matters of law, and 
900 
shall exercise the following functions:  
901 
i. 
Advise the Secretary on all matters relating to legal and 
902 
legislative affairs; 
903 
ii. 
Prepare Department contracts and legal instruments, review 
904 
and interpret all contracts and agreements entered into by 
905 
the Department and evaluate all legal proposals;  
906 
iii. 
Conduct administrative investigation and the review of 
907 
administrative charges against officers and employees of the 
908 
Department; 
909 
iv. 
Exercise functional jurisdiction over the legal staffs of 
910 
Regional Offices;  
911 
v. 
Provide legal assistance to the Department Proper, the 
912 
bureaus and regional offices and when requested, the 
913 
attached corporations;  
914 
vi. 
Develop and prepare the Department's Legislative Agenda, 
915 
recommend presidential certification of the urgency of 
916 
priority water bills, and other water-related legislation; 
917 
vii. 
Coordinate and maintain linkages between and among the 
918 
various offices, bureaus, regional offices and attached 
919 
agencies to the Department along with other government 
920 
agencies on policy matters affecting the Department's 
921 
mandate in relation to legislation; 
922 


viii. 
Perform liaison and networking activities in relation to the 
923 
enactment of related laws relating to water resources issues 
924 
in legislative policymaking bodies such as the Senate of the 
925 
Philippines, the House of Representatives, and the various 
926 
Sanggunians; 
927 
ix. 
Monitor the progress of the Department's priority or 
928 
certified bills to ensure their passage; and 
929 
x. 
Perform such functions and activities, as may be mandated 
930 
by law, which are necessary for the effective performance of 
931 
the abovementioned objectives. 
932 
(5) The Comptrollership and Financial Management Service shall 
933 
provide the Department with coordinated services relating to 
934 
financial systems and procedures, budget, cash, accounting and 
935 
all financial housekeeping matters, and shall exercise the 
936 
following functions: 
937 
i. 
Advise the Secretary on all matters relating to the 
938 
accounting of government expenditures and receipts, 
939 
budgeting and cash management, project finances and 
940 
financial systems and procedures;  
941 
ii. 
Prepare budget proposals and pursue formal budget 
942 
authorizations, undertake budget execution, and prepare 
943 
and submit all appropriate reports to the proper offices;  
944 
iii. 
Develop and maintain accounting, financial and assets 
945 
management systems, procedures and practices in the 
946 
Department Proper, Bureaus and Regional Offices;  
947 
iv. 
Review 
and 
appraise 
systems 
and 
procedures, 
948 
organizational structure, assets management practices, 
949 
accounting, and other records, reports, and performance 
950 
standards such as budgets and standard costs of the 
951 
Department, bureaus, and regional offices;  
952 
v. 
Provide assistance in its area of specialization to any unit of 
953 
the Department and, when requested, to government 
954 
corporations and councils attached to the Department; and 
955 


vi. 
Perform such other related functions and activities which 
956 
are necessary for the effective financial management of the 
957 
Department. 
958 
(6) The Resource Regulation Services shall provide the Department 
959 
with services for the effective regulation of all water-related 
960 
services and activities and shall exercise the following functions:  
961 
i. 
Advise the Secretary on all matters relating to resource 
962 
regulations;  
963 
ii. 
Determine, grant and regulate water rights for the 
964 
appropriate, optimal and sustainable use of surface and 
965 
ground water;  
966 
iii. 
Determine and evaluate waterworks and sewerage licenses, 
967 
and submit evaluation results to the Water Regulatory 
968 
Commission for the latter's consideration in granting of 
969 
licenses;  
970 
iv. 
Investigate violations of the water rights and the Water 
971 
Code, and impose the appropriate sanctions in accordance 
972 
with existing laws, rules and regulations as well as future 
973 
rules and regulations which the Department shall 
974 
promulgate;  
975 
v. 
Adjudicate water use conflicts; and  
976 
vi. 
Perform such other related functions and activities which 
977 
are necessary for the effective regulation of water-related 
978 
services. 
979 
(7) The Infernal Audit Service shall regularly conduct a 
980 
comprehensive audit of various Department activities and shall 
981 
exercise the following functions:  
982 
i. 
Advise the Secretary on all matters relating to management 
983 
control and operations audit;  
984 
ii. 
Conduct a performance audit of the management and 
985 
operations of the Department, its activities, the performance 
986 
of all units, and determine the degree of compliance of all 
987 


operating units with established objectives, policies, 
988 
standards, 
methods 
and 
procedures, 
government 
989 
regulations and contractual obligations of the Department; 
990 
iii. 
Review 
and 
appraise 
systems 
and 
procedures, 
991 
organizational structure, assets management practices, 
992 
accounting and other records, and performance standards 
993 
such as budgets and standard costs of the Department 
994 
Proper, bureaus and regional offices; 
995 
iv. 
Analyze and evaluate management deficiencies and 
996 
recommend realistic courses of action; and 
997 
v. 
Perform such functions and activities, as may be mandated 
998 
by law, which are necessary for the effective performance of 
999 
the abovementioned objectives. 
1000 
(8) The Public Affairs Service shall enhance relations with all 
1001 
stakeholders including the media, for the effective dissemination 
1002 
of information relating to water-related issues, including 
1003 
important announcements on policies and activities of the 
1004 
department that is of interest to the general public. It shall 
1005 
ensure that women, men, elderly, and people with disabilities 
1006 
shall be consulted, organized and take active part in all aspects 
1007 
of water resources development and management activities. It 
1008 
shall also lead the planning and organizing of special events, and 
1009 
shall exercise the following functions: 
1010 
i. 
 Public Awareness  
1011 
a. Advise the Secretary on matters pertaining to public 
1012 
affairs;  
1013 
b. Develop and supervise the implementation of 
1014 
comprehensible 
communications 
programs 
on 
1015 
relevant policies, programs and plans of the 
1016 
Department; 
1017 
c. Produce and supervise the dissemination of 
1018 
communication materials in line with the priorities 
1019 


of the Department and national government public 
1020 
information programs; 
1021 
d. Conduct public opinion and attitude surveys to 
1022 
identify 
the 
interests 
and 
concerns 
of 
the 
1023 
stakeholders of the Department; 
1024 
e. Establish 
policies 
on 
the 
presentation 
and 
1025 
publication of the content of the communication 
1026 
materials for dissemination to print and broadcast 
1027 
media; 
1028 
f. Establish and maintain linkages with the tri-media 
1029 
and a presence in social media; 
1030 
g. Coordinate the conduct of interviews and news 
1031 
conferences; 
1032 
h. Make public announcements on matters relating to 
1033 
the work and activities of the Department through 
1034 
the print and broadcast media, either through press 
1035 
releases or live interviews; 
1036 
i. Coordinate 
with 
various 
Department 
units, 
1037 
concerned government agencies, tri-media and other 
1038 
stakeholders on matters related to the above-
1039 
enumerated functions; and 
1040 
j. Coordinate 
with 
the 
appropriate 
national 
1041 
government agencies involved in public information 
1042 
affairs. 
1043 
ii. 
Promote Participation 
1044 
a. Conduct public consultations and discussions; 
1045 
b. Develop and disseminate relevant and appropriate 
1046 
materials and programs for public information and 
1047 
education, as well as advocacy campaign; 
1048 
c. Conduct seminars and workshops involving the 
1049 
LGUs and the general public on current water issues 
1050 
and problems; and 
1051 


d. Conduct capability building seminars of various 
1052 
stakeholders to promote meaningful participation in 
1053 
the 
Department's 
policy 
making, 
planning, 
1054 
development 
and 
implementation 
of 
various 
1055 
programs and projects. 
1056 
iii. 
Special Events 
1057 
a. Coordinate the organization and promotion of 
1058 
special events and water exhibits; 
1059 
b. Act as the focal office for all water related events; 
1060 
and 
1061 
c. Perform such functions and activities, as may be 
1062 
mandated by law, which are necessary for the 
1063 
effective performance of the abovementioned 
1064 
objectives. 
1065 
(f) Bureaus. —  The Department shall create bureaus which shall each be 
1066 
headed by a Bureau Director. The Bureau Director shall be responsible 
1067 
for the efficient and effective discharge of the functions of the Bureau 
1068 
concerned. The Bureau Director shall be assisted by one (1) Assistant 
1069 
Director. 
1070 
(1) Bureau of Flood Control and Drainage  shall plan and design 
1071 
flood control and drainage structures and facilities in 
1072 
accordance with technical standards, guidelines and manuals. 
1073 
For this purpose, it shall have the following duties and 
1074 
responsibilities: 
1075 
i. 
Formulate policy, strategies and programs on flood risk 
1076 
management in the context of integrated flood management 
1077 
(IFM) which integrates water, land, coastal zone and multi-
1078 
hazard management. In integrating land use planning and 
1079 
water management, the Department shall harmonize and 
1080 
synthesize plans to enable the sharing of information 
1081 
between land-use planning and water management 
1082 
authorities. In this regard, a holistic approach shall be 
1083 


adopted by making the IFM a part of a wider risk or multi- 
1084 
hazard management system that includes earthquakes, 
1085 
landslides, fires, tsunami, and other calamities of the same 
1086 
gravity or nature;  
1087 
ii. 
Integrate climate change and disaster risk reduction and 
1088 
management in policies and plans;  
1089 
iii. 
Prepare master plans of flood management and drainage in 
1090 
river basins in coordination with the concerned water 
1091 
resources region and river basin organizations; Prepare 
1092 
master plans for urban drainage in cities and municipalities;  
1093 
iv. 
Prepare feasibility studies of recommended measures in the 
1094 
master plans;  
1095 
v. 
Plan and design structural measures for flood control and 
1096 
drainage; Implement and collaborate with concerned 
1097 
agencies on the formulation and adoption of non-structural 
1098 
measures for flood control and drainage; 
1099 
vi. 
Patrol and investigate rivers, and monitor stream flows; 
1100 
Conduct post-disaster investigation and evaluation and 
1101 
damage assessment of flood infrastructures after extreme 
1102 
events; 
1103 
vii. 
Conduct research and development on water and sediment-
1104 
related disasters;  
1105 
viii. 
Develop design guidelines, criteria, and standards on flood 
1106 
control and drainage structures;  
1107 
ix. 
Provide technical assistance to other agencies, LGUs, and 
1108 
other stakeholders; 
1109 
x. 
Advise the Secretary on declaring flood control areas and 
1110 
recommend guidelines for flood plain management plans in 
1111 
these areas; and  
1112 
xi. 
Perform such related activities which are necessary for the 
1113 
effective performance of its functions. 
1114 


(2) Bureau of Water Qualify Management shall supervise and 
1115 
exercise control over all aspects of water quality management to 
1116 
ensure the sustainability of the country's water resources and the 
1117 
protection of the environment. It should take into account 
1118 
proper and integrated treatment of freshwater and wastewater 
1119 
within the whole process. For this purpose, the Bureau shall 
1120 
exercise the following functions:  
1121 
i. 
Establish water quality guidelines for freshwater and coastal 
1122 
or marine waters as basis for classifying water bodies in the 
1123 
country. Specifically, develop water quality indices or 
1124 
composite metrics to measure the quality status and health 
1125 
of natural water bodies in relation to ecological integrity 
1126 
and function; 
1127 
ii. 
Establish effluent standards for point discharges to receiving 
1128 
bodies of water; 
1129 
iii. 
Establish internationally accepted procedures for sampling 
1130 
and analysis; 
1131 
iv. 
Prepare 
an 
integrated 
water 
quality 
management 
1132 
framework;  
1133 
v. 
Prepare the ten-year water quality management plans for 
1134 
each water quality management area as part of the River 
1135 
Basin Master Plans and in support of the NWRMP; 
1136 
vi. 
Classify groundwater sources and prepare a national 
1137 
groundwater vulnerability map; 
1138 
vii. 
Classify or reclassify all water bodies according to their 
1139 
beneficial usages using the established water quality 
1140 
guidelines established;  
1141 
viii. 
Issue permits, clearances, and similar instruments pursuant 
1142 
to the Clean Water Act of 9 2004; 
1143 
ix. 
Collect the wastewater discharge fees for all permittees; 
1144 
x. 
Monitor the compliance of water discharge permittees with 
1145 
the effluent standards; 
1146 


xi. 
Regularly monitor the water quality of major water bodies 
1147 
in the country and analyze the data to identify possible 
1148 
sources of pollution; 
1149 
xii. 
Issue notices of violations and/or cease and desist orders for 
1150 
those found in violation; 
1151 
xiii. 
File the needed cases against violators with the Water 
1152 
Pollution Adjudication Board (WPAB); 
1153 
xiv. 
Serve as secretariat of the WPAB; and  
1154 
xv. 
Perform such functions and activities, as may be mandated 
1155 
by law, which are necessary for the effective performance of 
1156 
the abovementioned objectives. 
1157 
(3) A Water Resources Regional Office (WRRO)  shall be organized 
1158 
per water resources region and shall be responsible for 
1159 
implementing the mandates, powers and duties of the 
1160 
Department at the field level, except for policymaking which 
1161 
will be vested solely in the Department. The formulation of the 
1162 
master plan for the nearby river basins such as the Pasig-
1163 
Marikina-Laguna Lake-Cavite, shall be the responsibility of the 
1164 
Department. Each WRRO shall perform the following duties 
1165 
and responsibilities: 
1166 
i. 
Formulate or update and coordinate the river basin master 
1167 
plans for river basins within its jurisdictions ensuring 
1168 
consistency 
with 
the 
National 
Water 
Resources 
1169 
Management Framework Plan; 
1170 
ii. 
Advocate and strongly support the creation and functioning 
1171 
of multistakeholder river basin organizations (RBOs) and 
1172 
serve as the secretariat of the said RBOs; 
1173 
iii. 
Undertake and evaluate the planning, design, and work 
1174 
supervision functions of the Department for the water 
1175 
infrastructures within the region; 
1176 
iv. 
Ensure the implementation of laws, policies, programs, rules 
1177 
and 
regulations 
regarding 
the 
abovementioned 
1178 


infrastructure as well as public and private physical 
1179 
structures; 
1180 
v. 
Provide technical assistance related to the water-related 
1181 
functions of other agencies within the region especially the 
1182 
local government;  
1183 
vi. 
Coordinate with other departments, agencies, institutions 
1184 
and organizations, especially local government units within 
1185 
the region in the planning and implementation of the river 
1186 
basin master plans; 
1187 
vii. 
Conduct consultations with the local communities, take 
1188 
appropriate measures to ensure that the services of the 
1189 
Department 
are 
responsive, 
and 
recommend 
such 
1190 
appropriate actions as may be necessary; and 
1191 
viii. 
Perform such functions and activities, as may be mandated 
1192 
by law, which are necessary for the effective performance of 
1193 
the abovementioned objectives. 
1194 
The Department shall retain existing Project Management Offices as may be 
1195 
required, which shall be under the supervision and control of the appropriate 
1196 
Water Resources Regional Office unless otherwise determined by the Secretary 
1197 
for reasons of supra­regional scope, magnitude and multi-functional coverage. 
1198 
Each Water Resources Regional Office shall be headed by a Water Resources 
1199 
Regional Director who shall be responsible for efficiently and effectively 
1200 
carrying out the duties and responsibilities of the Office. Towards this end, the 
1201 
Water 
Resources 
Regional 
Director 
shall 
exercise 
functional 
and 
1202 
administrative supervision over all units within the region and is authorized to 
1203 
commit resources and assign personnel to integrated regional water resources 
1204 
management, water supply and sanitation management, and flood control and 
1205 
flood risk management initiatives. The Water Resources Regional Director 
1206 
shall also perform such other related duties and responsibilities as may be 
1207 
assigned or delegated by the Secretary or as may be required by law. 
1208 
The Water Resources Regional Director shall be assisted by two (2) Assistant 
1209 
Water Resources Regional Office Directors who shall exercise supervision 
1210 


over (1) the planning, project design and evaluation function and (2) technical 
1211 
assistance to the River Basin Organizations within the water resources region. 
1212 
SEC. 14. Water Pollution Adjudication Board. —  There is hereby created a Water 
1213 
Pollution Adjudication Board under the Office of the Secretary. The Board 
1214 
shall be composed of the Secretary as Chairperson, two (2) Undersecretaries 
1215 
as may be designated by the Secretary, the Director of Water Quality 
1216 
Management Bureau, and three (3) other representatives from other 
1217 
stakeholders to be designated by the Secretary as members. 
1218 
The Board shall assume the powers and functions of the National Pollution 
1219 
Control Commission with respect to the adjudication of water pollution cases 
1220 
under Republic Act No. 3931 entitled, An Act Creating The National Water 
1221 
And Air Pollution Control Commission, Presidential Decree 984 entitled 
1222 
Providing For The Revision Of Republic Act No.  3931, Commonly Known 
1223 
as the Pollution Control Law, And For Other Purposes, particularly with 
1224 
respect to Section 6 letters e, f, g, j, k and Republic Act No. 9275. The Bureau 
1225 
of Water Quality Management shall serve as the Secretariat of the Board. 
1226 
These powers and functions may be delegated to the field officers of the 
1227 
Department in accordance with rules and regulations to be promulgated by 
1228 
the Board. 
1229 
CHAPTER III 
1230 
INTERDEPARTMENTAL RELATIONS 
1231 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
1232 
SEC. 15. Interface and Institutional Arrangements with Other Agencies. 
1233 
(a) The Department of Health (DOH) shall continue to have primary 
1234 
authority and responsibility for setting and enforcing drinking water 
1235 
quality standards. The Department shall coordinate with the DOH in 
1236 
this aspect, and shall ensure consistency of standards and targets, as 
1237 
well as the compliance of permittees with mandated standards; 
1238 


(b) The Department of Environment and Natural Resources (DENR) shall 
1239 
continue to have primary authority and responsibility for protecting the 
1240 
environment and managing the country's watersheds; 
1241 
(c) The Department of Energy (DOE) and the National Power Corporation 
1242 
(NPC) shall continue to have primary authority and responsibility for 
1243 
establishing and operating hydropower plants, but shall ensure that 
1244 
hydropower plant development plans are consistent with the National 
1245 
Water Development and Management Plan; 
1246 
(d) The Department shall coordinate with the DA to ensure agricultural 
1247 
development that reduces long-term pollution for surface water and 
1248 
groundwater, and agricultural and industrial economic development 
1249 
that employs water efficiency, water recycling or reuse, and the 
1250 
appropriate treatment of wastewater; 
1251 
(e) The Department shall coordinate with the National Disaster Risk 
1252 
Reduction Management Council (NDRRMC) to ensure that its plans 
1253 
and designs for flood control, flood risk management and drought risk 
1254 
management are aligned with the objectives and plans of the 
1255 
Department; 
1256 
(f) The Department shall coordinate with Climate Change Commission 
1257 
(CCC), Philippine Atmospheric, Geophysical and Astronomical 
1258 
Services Administration (PAGASA), and National Mapping and 
1259 
Resource Information Authority (NAMRIA) for scientific studies, 
1260 
integrated surveys, mapping, charting, and decision support systems; 
1261 
(g) The Department shall coordinate with the Department of Tourism 
1262 
(DOT) on recreational use of water resources; 
1263 
(h) The Department shall coordinate with the Philippine Reclamation 
1264 
Authority and economic zone authorities on water resources 
1265 
development and water requirements within reclamation areas and 
1266 
economic zones, respectively; and 
1267 
(i) The Department shall coordinate with relevant government agencies, 
1268 
including local government units (LGUs), with respect to development 
1269 


projects and shall ensure cross-cutting collaboration between and 
1270 
among all water subsectors and facilitate inter-agency subsector 
1271 
coordination, strategic development, planning, monitoring and 
1272 
provision of technical, institutional and financial capacity building 
1273 
support to their different stakeholders at the water subsector level. 
1274 
SEC. 16. National Water Sector Policy Board. —  The National Water Sector Policy 
1275 
Board (NWSPB) shall be created and shall be headed by the Secretary of the 
1276 
Department of Water Resources with the Secretary of the National Economic 
1277 
and Development Authority as the Vice-Chairperson, and the Secretaries of 
1278 
the DOH, DILG, DOE, DA, Department of Social Welfare and Development; 
1279 
DPWH; Department of Budget and Management (DBM); Office of the 
1280 
President, and DENR, and National Commission on Indigenous Peoples as 
1281 
members. The Department shall provide personnel to serve as Secretariat to 
1282 
the Board. 
1283 
SEC. 17. Powers and Functions of the National Water Sector Policy Board. —  The 
1284 
NWSPB shall perform policymaking, coordination, integration, supervision, 
1285 
monitoring and evaluation functions, and shall have the following 
1286 
responsibilities:  
1287 
(a) Approve the NWRMP which shall serve as a principal guide to water 
1288 
management efforts in the country and shall be reviewed every five (5)-
1289 
years interval, or as may be deemed necessary, in order to ensure its 
1290 
relevance to the times; 
1291 
(b) Provide overall policy direction and recommend policies on water 
1292 
resources requiring Presidential decision; 
1293 
(c) Advise the President on the status of water management and supply, 
1294 
recommend to the President the declaration of a state calamity in areas 
1295 
affected by water supply, and submit proposals to restore normalcy in 
1296 
the affected areas; 
1297 
(d) Ensure a multi-stakeholder participation in the development, updating, 
1298 
and sharing of information system as policy, planning and decision- 
1299 
making tools consistent with IWRM. 
1300 


SEC. 18. Transfer of Rights and Obligations. —  The Department shall, by virtue of 
1301 
this Act, be subrogated to all the rights and assume all the obligations of the 
1302 
government agencies and units whose powers and functions have been 
1303 
subsumed, absorbed, transferred or attached to the Department in accordance 
1304 
with the rules and regulations of the Commission on Audit, and the Civil 
1305 
Service Commission, and other applicable laws. The transfer of powers and 
1306 
functions as herein provided shall take effect within six (6) months of the 
1307 
effectivity of this Act. As such, all affected agencies, offices, units shall 
1308 
continue to function under their present mandates. 
1309 
CHAPTER IV 
1310 
WATER REGULATORY COMMISSION 
1311 
SEC. 19. Water Regulatory Commission. —  There is hereby created and established as 
1312 
an independent, quasi-judicial regulatory body to be known as the Water 
1313 
Regulatory Commission, hereinafter referred to as the Commission, which 
1314 
shall be organized within one hundred twenty (120) days after the effectivity 
1315 
of this Act. 
1316 
The Commission shall be placed under the administrative supervision of the 
1317 
Department as an attached agency. 
1318 
The Commission shall have a Board of Commissioners, and shall be vested 
1319 
with powers and functions, as conferred and set forth hereunder. 
1320 
SEC. 20. The Regulatory Units. —  The regulatory units of the Commission shall be 
1321 
composed of the central regulatory unit and the regional regulatory units. 
1322 
The economic regulatory units and functions of the MWSS, NWRB, LWUA, 
1323 
SBMA, PEZA, and TIEZA are hereby transferred to the Commission, and shall 
1324 
collectively comprise its central regulatory unit for water supply and sanitation 
1325 
services that: (a) provide services to more than one province; and (b) are 
1326 
owned, operated and/or maintained by special economic zones and Metro 
1327 
Manila concessionaires. 
1328 


The regional regulatory units shall be established by the Commission in 
1329 
accordance with this Act and the rules, regulations, guidelines, and standards 
1330 
that the Commission shall issue. 
1331 
SEC. 21. Powers and Functions of the Commission. —  The overall authority and 
1332 
powers of the Commission shall cover and apply to all service providers, 
1333 
whether private or public, providing or intending to provide levels II & III 
1334 
water supply, including suppliers to subdivisions and/or other service 
1335 
providers, sewerage, and/or septage treatment and disposal services for 
1336 
domestic, residential, institutional, industrial or commercial use. 
1337 
The Commission shall exercise the following powers and functions: 
1338 
(a) Issue and promulgate rules, regulations and guidelines as may be 
1339 
necessary to implement and enforce its powers and functions under this 
1340 
Act; 
1341 
(b) Promulgate and enforce just and reasonable technical standards, 
1342 
classifications and measurements of service; 
1343 
(c) Establish rules and regulations to monitor, avoid, and provide remedies 
1344 
for any market power abuse or anti-competitive or discriminatory act 
1345 
or behavior by or against any participant in the water supply and 
1346 
sanitation sector. Upon finding that a market participant has engaged 
1347 
in, or has fallen victim to such act or behavior, the Commission shall 
1348 
act to stop or redress the same. Such remedies may, without limitation, 
1349 
include the imposition of price controls, issuance of injunctions, 
1350 
requirement of divestment or disgorgement of excess profits, 
1351 
invalidation of contracts and imposition of fines and penalties pursuant 
1352 
to this Act. 
1353 
(d) Adopt and require that books, records, and accounts be kept and 
1354 
maintained in accordance with the prescribed uniform accounting 
1355 
system; 
1356 
(e) Fix and determine proper and adequate rates of depreciation of 
1357 
properties and equipment used in water supply and sanitation services; 
1358 


(f) Impose and collect annual levies determined as a percentage of gross 
1359 
revenue accruing in relation to the licensed activities, and reasonable 
1360 
fees and surcharges as may be necessary for achieving the purposes, 
1361 
powers and functions of the Commission; 
1362 
(g) Require the submission reports of finances and operations, verified 
1363 
under oaths by the owner or president and secretary of the board of the 
1364 
licensee; 
1365 
(h) Determine and require the monitoring and submission of such data, 
1366 
statistics and other information from the regulatory units and any or 
1367 
all licensees as may be necessary for the effective and efficient exercise 
1368 
of its duties, functions, powers and responsibilities. 
1369 
(i) Investigate,  motu propio  or upon a written complaint, any matter 
1370 
concerning the operation of the service and issues on price 
1371 
manipulation and anticompetitive behavior; 
1372 
(j) Impose penalties and fines against any licensee or against its owners, 
1373 
directors, officers, agents or representatives for any violation of this Act 
1374 
or of the license, order, rule regulation or requirement issued by the 
1375 
Commission; 
1376 
(k) Require any licensee to pay the actual expenses incurred by the 
1377 
Commission in any investigation if it shall be found that a licensee 
1378 
violated any provision of this Act or of the license, order, rule 
1379 
regulation or requirement issued by the Commission; 
1380 
(l) Advise, apprise and coordinate with other relevant agencies of the 
1381 
national or local government on any matter relating to water supply 
1382 
and sanitation services; 
1383 
(m) Deputize agents, whether from the public or private sector, to assist in 
1384 
the performance of any of the powers and functions of the Commission; 
1385 
(n) Appoint an interim or temporary management committee upon appeal 
1386 
and after due hearing, to ensure continuity of service in case a licensee 
1387 
fails to meet conditions of the license and the concerned Regulatory 
1388 


Unit fails or refuses to appoint an interim management committee as 
1389 
provided in the following section. 
1390 
(o) Appoint, hire and maintain adequate staff and personnel, advisers, or 
1391 
consultants, with suitable qualifications and experience, as necessary; 
1392 
(p) Exercise original and exclusive jurisdiction over all cases contesting 
1393 
rates, fees, fines and penalties imposed by the regulatory units in the 
1394 
exercise of their powers, functions and responsibilities, as provided 
1395 
under this Act, and over all cases involving disputes between and 
1396 
among participants or stakeholders in the water supply and sanitation 
1397 
services; and 
1398 
(q) Such other incidental powers and functions as may be necessary to 
1399 
attain the objectives of this Act. 
1400 
SEC. 22. Powers and Functions of the Regulatory Units. —  The regulatory units of the 
1401 
Commission shall have the following powers and functions:  
1402 
(a) Issue licenses authorizing the operation of water supply and sanitation 
1403 
services in any specified area or areas within the Philippines. 
1404 
(b) Impose fines, charges and other penalties upon any provider and/or its 
1405 
officers and stockholders who shall fail or refuse to register or obtain a 
1406 
license prior to operation or commencement of business, as provided 
1407 
hereunder. 
1408 
(c) Review, determine, fix, and approve, consistent with the rules, 
1409 
guidelines, procedures and methodologies which the Commission shall 
1410 
provide, proposed water and sewerage and septage management tariffs, 
1411 
rates and charges that licensees may impose upon their consumers; 
1412 
(d) Appraise and value property and equipment used by licensees in 
1413 
providing water supply and sanitation services. 
1414 
(e) Enforce technical, financial, and other performance standards set by the 
1415 
Commission for licensees or utilities; 
1416 


(f) Respond to consumer complaints and ensure the adequate promotion 
1417 
of consumer interests and investigate  motu propio  price manipulation 
1418 
and anticompetitive behavior; 
1419 
(g) Investigate accidents directly or indirectly arising from or connected 
1420 
with the maintenance or operation of the service, and make such order 
1421 
or recommendation as the public interest may warrant; 
1422 
(h) Require the review and/or approval of contracts or agreements that may 
1423 
impact on the tariff and rates of service provision entered into by service 
1424 
providers upon petition or  motu propio  where in its determination 
1425 
public interest so dictates; 
1426 
(i) Require the submission of reports, plans, and other documents that 
1427 
define the performance targets of the licensees or utilities, and regular 
1428 
accomplishment reports; 
1429 
(j) Impose and collect annual levies determined as a percentage of gross 
1430 
revenue accruing in relation to the licensed activities, and reasonable 
1431 
fees and surcharges as may be necessary for achieving the purposes, 
1432 
powers, and functions of the regulator; 
1433 
(k) Conduct benchmarking and monitor the performance of licensees or 
1434 
utilities under their jurisdiction, and publish reports detailing the results 
1435 
thereof, as may be necessary or required by the Commission; 
1436 
(l) Amend, modify, suspend, or revoke any license issued by them, after 
1437 
due notice and hearing, on any of the following grounds: 
1438 
(1) when the facts and circumstances on the strength of which the 
1439 
license was issued have been materially misrepresented or have 
1440 
materially changed;  
1441 
(2) where the licensee has failed to meet or comply with terms, 
1442 
conditions, and performance targets, including but not limited 
1443 
to service expansion, that may have been set in the license; 
1444 
(3) where the licensee is found to be manifestly inefficient in the 
1445 
operation of or provision of water supply and sanitation services 
1446 
in its area; or  
1447 


(4) when the licensee thereof has violated or willfully refused to 
1448 
comply with any order, rule or regulation of the Commission or 
1449 
any provision of this Act; 
1450 
(m) Appoint an interim management committee to ensure continuity of 
1451 
service in case a licensee fails to meet the conditions of the license; and 
1452 
(n) Submit performance plans and reports as required by the Commission. 
1453 
SEC. 23. Composition of the Water Regulatory Commission. 
1454 
(a) The Commission shall be a collegial body composed of five (5) full-time 
1455 
members consisting of a Chairperson and four (4) members, who shall 
1456 
all be appointed by the President of the Philippines. All members of the 
1457 
Commission must be citizens and residents of the Philippines, at least 
1458 
thirty five (35) years of age, and of good moral character, of recognized 
1459 
integrity and competence in the field of law, business, commerce, 
1460 
finance, accounting or public administration, water or utility 
1461 
economics, management, physical or engineering services, hydrology 
1462 
and other related services, with at least three (3) years of actual and 
1463 
distinguished experience in their respective fields of expertise:  
1464 
Provided,  That out of the four (4) members of the Commission, at least 
1465 
one (1) shall be a member of the Philippine Bar with at least ten (10) 
1466 
years of experience in the active practice of law, and at least one (1) 
1467 
shall be a certified public accountant with at least ten (10) years of 
1468 
experience in active practice. 
1469 
(b) The term of office of each member of the Commission shall be seven (7) 
1470 
years: Provided,  That among the members first appointed, the 
1471 
Chairperson shall serve for a period of seven (7) years,  two  (2) 
1472 
members shall serve for five (5) years and the other  two  (2) members 
1473 
shall serve for three (3) years:  Provided further,  That any member 
1474 
whose term has expired as specified herein shall serve as such until a 
1475 
successor shall have been appointed and qualified: Provided 
1476 
furthermore,  That any appointment to fill a vacancy in the 
1477 
Commission arising from death, removal, retirement or resignation 
1478 
shall be made only for the unexpired term:  Provided, finally,  That in 
1479 


no case shall any member serve for more than seven (7) years in the 
1480 
Commission. 
1481 
(c) The Commission shall meet as often as may be necessary on such day 
1482 
or days as the Chairperson may fix. The presence of at least three (3) 
1483 
members of the Commission shall constitute a quorum, which shall be 
1484 
necessary for the transaction of any business. The affirmative vote of 
1485 
majority of the members of the Commission where a quorum is present 
1486 
shall be necessary for the adoption of any order, resolution, decisions, 
1487 
or other act of the Commission in the exercise of its quasi-judicial 
1488 
functions:  Provided,  That in promulgating rules, regulations, 
1489 
guidelines and in exercising its quasi-legislative functions, an 
1490 
affirmative vote of three (3) members shall be required. 
1491 
(d) The Chairperson of the Commission shall exercise general executive 
1492 
control and supervision over the Commission and its members, staff 
1493 
and personnel, agents and representatives. Within three (3) months 
1494 
from the creation of the Commission and the appointment of all 
1495 
Members of the Commission, the Chairperson shall determine and 
1496 
establish the organizational structure and plantilla  positions necessary 
1497 
to carry out the powers and functions of the Commission, including 
1498 
those of the central and provincial regulatory units subject to the review 
1499 
and approval of the DBM. 
1500 
(e) The plantilla positions of the Commission shall be filled by regular 
1501 
appointments in accordance with Civil Service laws, rules, and 
1502 
regulations. Members of the Commission shall enjoy security of tenure 
1503 
and shall not be suspended or removed from office except for just cause 
1504 
as specified by law. 
1505 
(f) The Chairperson and members of the Commission or any of their 
1506 
relatives within the fourth civil degree of consanguinity or affinity, 
1507 
legitimate or common law, shall be prohibited from holding any 
1508 
interest whatsoever, either as investor, stockholder, officer or director, 
1509 
in any company or entity engaged in provision of water supply and 
1510 
distribution, septage management and sewerage services and must, 
1511 


therefore, divest through sale or legal disposition of any and all interests 
1512 
in the water sector upon assumption to office. 
1513 
SEC. 24. SEC. 24.  Secretariat of the Commission. —  The Commission shall establish 
1514 
a Secretariat which shall provide the Commission with technical and support 
1515 
services including the following: 
1516 
(a) Provide the necessary technical inputs and secretariat support to the 
1517 
Commission to facilitate the conduct of its functions; 
1518 
(b) Coordinate with Regulatory Units to ensure proper implementation of 
1519 
the rules, regulations and guidelines promulgated by the Commission; 
1520 
(c) Monitor and assess activities of the Regulatory Units vis-a-vis their 
1521 
respective annual performance plans and targets; 
1522 
(d) Maintain a database on the water supply and sanitation subsector; and 
1523 
(e) Coordinate with other relevant agencies of the national or local 
1524 
government on any matter relating to water supply and sanitation. 
1525 
SEC. 25. Executive Director. —  The Commission shall appoint an Executive Director 
1526 
who shall head the Commission Secretariat, keep and maintain the official 
1527 
records of the Commission, render a report on the proceedings of the 
1528 
Commission, and administer oaths in all matters falling within the jurisdiction 
1529 
of the Commission. 
1530 
The Executive Director shall be responsible for the effective implementation 
1531 
of the policies, plans, programs, rules, regulations and directives of the 
1532 
Commission; coordinate and supervise the activities of the different operating 
1533 
units under the Commission; and perform such functions as may be assigned 
1534 
by the Chairperson and/or other members of the Commission. 
1535 
SEC. 26. Compensation and Other Emoluments. —  The compensation of the members 
1536 
of the Commission and its staff shall conform to provisions of Republic Act 
1537 
No. 6758 as amended, otherwise known as the Compensation and Position 
1538 
Classification Act of 1989. 
1539 


CHAPTER V 
1540 
REGISTRATION AND LICENSING 
1541 
SEC. 27. Registration and Licensing of  All  Water Supply and Sanitation Services. —  
1542 
All water supply and sanitation service providers, including bulk water 
1543 
suppliers and those providing services to subdivisions and other service 
1544 
providers, shall register with the Commission and, subject to such rules, 
1545 
guidelines, procedures and other issuances of the Commission, obtain a license 
1546 
to operate from the appropriate regulatory units. 
1547 
The Commission shall ensure that the grant and revocation of licenses are 
1548 
carried out fairly, transparently, and without discrimination. Issuances of the 
1549 
Commission shall specify, among others, the qualifications, requirements, and 
1550 
procedure for the grant and revocation of licenses including the standards and 
1551 
performance targets that shall continuously be complied with to keep the 
1552 
licenses valid. 
1553 
Unless otherwise provided in this Act or by the Commission, no public water 
1554 
supply and sanitation service provider shall commence or conduct the business 
1555 
of providing water supply and sanitation services without first obtaining a 
1556 
license. 
1557 
Concession agreements and other contracts for water supply provision and 
1558 
water sanitation and treatment services currently existing shall remain valid 
1559 
and enforceable unless otherwise terminated, after due notice and hearing for 
1560 
reasons provided in the existing terms and conditions under the concession or 
1561 
service agreement or contract, or when invalidated by the Commission, after 
1562 
due notice and hearing, where national security, national emergency or public 
1563 
interest so dictates. 
1564 
SEC. 28. Conditions of License. —  The Commission or the concerned regulatory unit, 
1565 
may impose such conditions on the licensee as it may deem necessary, such as:  
1566 
(a) Tariffs, rates and charges that may be imposed from its customers or 
1567 
consumers. 
1568 
(b) Term fixing the duration of the privilege. 
1569 


(c) Grounds for modification, suspension or cancellation of the License. 
1570 
(d) Minimum technical performance and service level standards. 
1571 
(e) Expansion targets and service level improvements over time. 
1572 
(f) Restrictions or conditions for transferability of the business or 
1573 
controlling interest in the business. 
1574 
(g) Reportorial requirements and obligations of the grantee. 
1575 
(h) Submission to annual performance audit by the Commission or its duly 
1576 
authorized representative(s). 
1577 
The Commission shall specify the requirements and procedure for existing 
1578 
holders of A Certificate of Public Convenience (CPC), Certificates of Public 
1579 
Convenience and Necessity (CPCN) issued by NWRB, or Certificate of 
1580 
Conformance (CoC) issued by LWUA, to convert their existing certificates 
1581 
into licenses to operate in accordance with Sec. 27 herein. 
1582 
 
1583 
All existing providers of water supply and sanitation services without a legal 
1584 
and valid Certificate of Public Convenience, Certificate of Public Convenience 
1585 
and Necessity, or Certificate of Conformance shall register with the 
1586 
Commission and apply for a license within six (6) months from the effectivity 
1587 
of this Act. 
1588 
SEC. 29. Rights and Duties of Licensees. – 
1589 
(a) Any person granted a license under this Act shall have the obligation to 
1590 
ensure that licensed activities are conducted to further public interest 
1591 
and, in particular: 
1592 
(1) Foster the maintenance and development of efficient, 
1593 
coordinated, and viable operation of their licensed activities;   
1594 
(2) Ensure that their water supply and sanitation services are 
1595 
provided in a diligent, conscientious and workman like manner, 
1596 
in accordance with applicable laws rules and regulations issued 
1597 


by the Commission and the generally accepted standards and 
1598 
practices of the water supply and sanitation industry; and 
1599 
(3) Comply with drinking water quality requirements and standards 
1600 
that may be established by the Commission. 
1601 
(b) Any person granted a license under this Act shall, to the extent allowed 
1602 
by law and specified in the license, has the right to acquire or lease land, 
1603 
lay or repair water or sanitation main lines and other relevant facilities 
1604 
in public ways to fulfill the terms and conditions under the license. 
1605 
(c) Subject to any condition or limitation laid down in the license, a licensee 
1606 
may discontinue water supply and sanitation services to a customer if 
1607 
such customer defaults in the payment of fees due to the licensee for the 
1608 
water supplied or sanitation services provided, or for acts of pilferage 
1609 
pursuant to Sections 8, 9, 10, and 11 of Republic Act No. 8041, 
1610 
otherwise known as the Wafer Crisis Act of  1995. 
1611 
(d) Any license issued under this Act shall contain provisions designed to 
1612 
sure that licensees: 
1613 
(1) Publish the Tariff and other charges approved by and the terms 
1614 
and conditions imposed by the Commission for the provision of 
1615 
water supply and sanitation services. 
1616 
(2) Prepare, within three (3) months from the issuance of a license, 
1617 
in consultation with its customers, a Customer Service Code 
1618 
specifying the manner and procedure for: (a) metering, billing, 
1619 
and collection of the licensee's approved tariff and other 
1620 
charges, (b) disconnection or suspension of service in case of 
1621 
non-payment of tariffs and/or other charges, or acts of pilferage, 
1622 
and (c) recommendation and recovery of arrears in tariffs and 
1623 
other charges; 
1624 
(3) Maintain financial accounts in accordance with the manner and 
1625 
procedure specified in the license and as may be required by the 
1626 
Commission; and 4. Maintain and upon request by anyone 
1627 
during regular office hours, promptly make available for 
1628 


scrutiny and inspection such data, statistics and other 
1629 
information, as may be required by the Commission. 
1630 
SEC. 30. Setting Tariffs, Rates, and Other Charges. —  Regulatory units shall establish 
1631 
tariffs, rates and other charges which are fair and reasonable, and ensure 
1632 
economic viability and a fair return on investments. 
1633 
Tariffs, rates and charges shall be based on and consistent with a rate-setting 
1634 
methodology that the Commission shall, after due consultation, define and 
1635 
publish, taking into account the following, among others: 
1636 
a. Reasonable and prudent capital and recurrent costs of providing 
1637 
the service including a reasonable rate of return on capital; 
1638 
b. Efficiency of the service;  
1639 
c. Incentives for enhancement of efficiency; 
1640 
d. Willingness to pay of the customers/consumers; 
1641 
e. Equity considerations; and 
1642 
f. Administrative simplicity. 
1643 
Tariffs, rates, and charges set by the regulatory units shall be presumed valid 
1644 
and reasonable unless a protest or contest is filed with the Commission. 
1645 
SEC. 31. Direct Access. —  Fifty-one (51) percent of the registered water consumers in 
1646 
a municipality, city or province may petition for direct access to water from 
1647 
any water service provider subject to concurrence by the service provider and 
1648 
approval by the Commission. The Commission shall promulgate rules and 
1649 
procedures for this mode of service. 
1650 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of Systems. —  
1651 
The Commission shall promote innovative schemes such as the consolidation 
1652 
or integration of water supply and sanitation services, or providers in the same 
1653 
service area, where it shall result in improved efficiency, service expansion and 
1654 
lower costs. 
1655 
To this end, the Commission shall establish and issue such rules and guidelines 
1656 
as may be necessary to (a) create incentives to encourage efficiency and service 
1657 


expansion; (b) establish the standards and targets that service providers are 
1658 
required to meet; and (c) define the fines and penalties that shall be imposed 
1659 
for failure to meet such standards and targets. 
1660 
CHAPTER VI 
1661 
QUASIQUDICIAL FUNCTIONS OF THE COMMISSION 
1662 
SEC. 33. Proceedings Before the Commission. —  For the purpose of any investigation, 
1663 
inquiry or proceeding, the Commission shall:  
1664 
(a) Issue  subpoena duces tecum  and  subpoena ad testificandum; 
1665 
(b) Appoint hearing officers to hear and receive evidence on behalf of the 
1666 
Commission; 
1667 
(c) Cite any person or party for contempt for refusal to appear, testify, or 
1668 
comply with an order of the Commission on any matter that is the 
1669 
subject of investigation, inquiry or proceeding before the Commission. 
1670 
SEC. 34. Orders and Decisions of the Commission. —  Any order, resolution, or 
1671 
decisions of the Commission shall be promulgated promptly, expeditiously, 
1672 
reasonably, and in writing, and shall state clearly and distinctly the facts and 
1673 
law on which it is based. 
1674 
The Commission shall publish and make available for public inspection, all 
1675 
decisions and final orders in the adjudication of contested cases or 
1676 
applications. 
1677 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. – 
1678 
(a) The orders, rulings, and decisions of the Commission are final and 
1679 
executory unless appealed to the Court of Appeals within fifteen (15) 
1680 
days from receipt of notice of such order, ruling or decision:  Provided,  
1681 
That orders, rulings, and decisions of the Commission approving 
1682 
tariffs, shall be immediately executory and may be suspended only 
1683 
upon appeal and filing of a bond, in an amount to be fixed by the 
1684 


Commission, to answer for damages occasioned by the suspension or 
1685 
stay of execution of such orders, rulings, and decisions. 
1686 
(b) No injunction may be issued by any court or administrative agency to 
1687 
restrain any proceeding before, or the implementation or execution of 
1688 
any order, ruling, or decision of the Commission, except on the basis 
1689 
of a question of law brought before the Supreme Court on  certiorari. 
1690 
(c) Any act or decision of the Commission shall not be invalidated merely 
1691 
because of a defect or irregularity in, or in connection with, the 
1692 
appointment or vacancy in the Office of the Chairperson or any other 
1693 
member of the Commission. 
1694 
CHAPTER VII 
1695 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
1696 
SEC. 36. Interface with Other Sector Regulators.  
1697 
(a) The DENR shall continue to exercise primary jurisdiction over 
1698 
programs aimed at protecting the environment and the quality of water 
1699 
sources from waste and pollution, and shall promulgate rules, 
1700 
regulations, and standards in this regard. The Department of Health 
1701 
(DOH) shall continue to exercise primary jurisdiction over the 
1702 
determination and enforcement of standards for quality drinking water 
1703 
and sanitation. 
1704 
(b) The Commission shall coordinate with the: 
1705 
(1) DOH to ensure that the standards and targets for quality 
1706 
drinking water and sanitation are consistently complied with;  
1707 
(2) LGUs for development projects relating to water supply and 
1708 
sanitation; and  
1709 
(3) Department of Public Works and Highways for flood control 
1710 
and harnessing and impounding of water. 
1711 
SEC. 37. Transfer of Rights and Obligations. — The Commission shall, by virtue of 
1712 
this Act, be subrogated to all the rights, and assume all the obligations, of the 
1713 


Water Utilities Division of the NWRB, the regulatory offices of MWSS and 
1714 
LWUA, the regulatory units of all special economic zones, and all other 
1715 
government agencies and units whose powers and functions have been 
1716 
transferred to the Commission. 
1717 
The transfer of powers and functions to the Department of the concerned 
1718 
agencies as herein provided for, shall be deemed completed within six (6) 
1719 
months after the effectivity of this Act. The transfer of powers and functions 
1720 
shall include all applicable funds, personnel, records, property and equipment, 
1721 
as may be necessary. The same shall apply to agencies which have been 
1722 
attached to the Department by virtue of this Act. 
1723 
 All agencies transferred, subsumed and attached to the Department, shall 
1724 
continue to function under their present mandates until the six-month 
1725 
transition period mandated under this Act shall have lapsed. The heads of the 
1726 
affected agencies shall continue to serve until replaced. 
1727 
 
1728 
All rights and obligations of the affected agencies are hereby transferred to and 
1729 
assumed by the Commission, and shall be acted upon in accordance with the 
1730 
rules and regulations of the Commission on Audit and other pertinent laws, 
1731 
rules, and regulations. 
1732 
SEC. 38. Absorption or Separation from Service of Employees of the Subrogated 
1733 
Agencies. —  The current employees of the Water Utilities Division of the 
1734 
NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of 
1735 
all special economic zones, and all other government agencies and units whose 
1736 
powers and functions have been transferred to the Commission shall enjoy 
1737 
security of tenure, and shall be absorbed by the Department, in accordance 
1738 
with their staffing pattern and the selection process as prescribed under 
1739 
Republic Act No. 6656 or the Government Reorganization Law. 
1740 
Employees opting to be separated from the service as a consequence of the 
1741 
consolidation, and reconstitution under the provisions of this Act shall, within 
1742 
one (1) month from their separation or phase out from the service, receive 
1743 
separation benefits in accordance with existing laws, and those who are 
1744 


qualified to retire shall be allowed to retire and be entitled to all benefits under 
1745 
existing retirement laws. 
1746 
SEC. 39. SEC. 39.  Water Trust Fund. —  There is hereby created a Water Trust Fund 
1747 
in the Bureau of Treasury. All non-tax revenues, including raw water pricing, 
1748 
permit fees, registration fees, supervision and regulation enforcement fees, 
1749 
filing fees, testing fees, and other service income from the use of water 
1750 
resources shall be remitted to the Water Trust Fund. The trust fund shall be 
1751 
accounted separately from the government's general revenues and shall be 
1752 
automatically appropriated to the Department. Proceeds from the trust fund 
1753 
shall be utilized for water development, water sanitation and waste water 
1754 
treatment and management, and water sustainability programs and projects 
1755 
authorized under this Act:  Provided,  That a maximum of ten percent (10%) 
1756 
of the total income generated from raw water extraction shall be given as share 
1757 
of the concerned local government unit or indigenous peoples (IP) community 
1758 
who own the specific areas or land where the raw water was sourced. 
1759 
CHAPTER VIII 
1760 
FINAL PROVISIONS 
1761 
SEC. 40. Applicability of Ease of Doing Business Law. —  The prescribed processing 
1762 
time provided under Section 9.b of Republic Act No. 11032, otherwise known 
1763 
as the Ease of Doing Business and Efficient Government Service Delivery Act 
1764 
of 2018,  shall be applicable to all agencies and LGUs covered under this Act 
1765 
particularly on accessing government services. 
1766 
SEC. 41. Transitory Provisions. —  Performance audit of all water-related agencies and 
1767 
institutions, including LWUA and water districts, MWSS, MWSS-RO and its 
1768 
concessionaires, LGU-run utilities, Tourism Infrastructure and Enterprise 
1769 
Zone Authority, Philippine Economic Zone Authority, Bases Conversion and 
1770 
Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA, 
1771 
shall be conducted by the Department. 
1772 


SEC. 42. Appropriations. —  The  amount necessary to cover the initial implementation 
1773 
of this Act shall be charged against the currents year's appropriations of the 
1774 
agencies and offices transferred and subsumed by the Department and the 
1775 
Commission in the General Appropriations Act. Thereafter, such sums as may 
1776 
be necessary for the continued implementation of the Act shall be included in 
1777 
the annual GAA. 
1778 
SEC. 43. Implementing Rules and Regulations. —  Within one hundred eighty (180) 
1779 
days from the effectivity of this Act, the Department, NEDA, DBM, DENR, 
1780 
CSC, in consultation with concerned government agencies, the Presidential 
1781 
Legislative Liaison Office shall promulgate rules and regulations for the 
1782 
effective implementation of this Act. 
1783 
SEC. 44. Separability Clause. —  If any reason, any portion or provision of this Act 
1784 
shall be held unconstitutional or invalid, the remaining provisions not affected 
1785 
thereby shall continue to be in full force and effect. 
1786 
SEC. 45. Repealing Clause. – 
1787 
(a) The following provisions are hereby repealed: 
1788 
(1) Section 3 (h) and Section 12 on the provision with respect to 
1789 
fixing of water rates and sanitation service fees, Section 3 (n) on 
1790 
the provision with respect to regulation of waterworks and deep 
1791 
wells, and Section 3 (p) on the provision with respect to 
1792 
regulation of waterworks and sanitation systems in privately 
1793 
owned subdivisions of Republic Act 6234 entitled,  An Act 
1794 
Creating The Metropolitan Waterworks And Sewerage System 
1795 
And Dissolving The National Waterworks And Sewerage 
1796 
Authority, And For Other Purposes,  as amended. 
1797 
(2) Title III on Local Water Utilities Administration Law of 
1798 
Presidential Decree No. 198 otherwise known as the  Provincial 
1799 
Wafer Utilities Act of  1973, as amended by Letter of Instruction 
1800 
No. 700 -  Providing Measures To Control And Regulate 
1801 
Increase In Wafer Rates,  Letter of Instruction No. 744Relative 
1802 
To Reliable Water Supply At Reasonable Rates In The 
1803 


Countryside  on the, Executive Order No. 124, 30 January 1987 
1804 
Reorganization Act of the Ministry of Public Works and 
1805 
Highways, Executive Order No. 123, 30 January 1987 -  
1806 
Reorganization Act of Ministry of Social Services and 
1807 
Development.  
1808 
(3) Republic Act No. 3601 as amended by Presidential Decree No. 
1809 
552 and Presidential Decree No. 1702 pertaining to the creation 
1810 
of the National Irrigation Administration; 
1811 
(4) Section 1 of Executive Order No. 124-A S. 1987 Amending 
1812 
Executive Order No. 124, dated 30 January 1987,  Reorganizing 
1813 
the Department of Public Works and Highways, Redefining Its 
1814 
Powers and Functions, and For Other Purposes  on renaming 
1815 
and reorganizing the National Water Resources Council into the 
1816 
National Water Resources Board. 
1817 
(b) The following provisions are hereby amended accordingly: 
1818 
(1) Section 3 paragraph 3 Commonwealth Act No. 146, as 
1819 
amended, otherwise known as the Public Service Act pertaining 
1820 
to all cases involving the fixing of rates; 
1821 
(2) Section 154, Article V, Chapter I, Title One, Book II of Republic 
1822 
Act No. 7160, as amended, otherwise known as the  "Local 
1823 
Government Code of 1991", and its implementing rules and 
1824 
regulations on the power of the local government units to fix the 
1825 
rates of water utilities owned, operated and maintained by them 
1826 
within their jurisdiction is hereby repealed or modified 
1827 
accordingly. 
1828 
(3) Section 13 (b) on the regulation of enterprises within the 
1829 
Economic Zone under Republic Act No. 7916 as amended, 
1830 
otherwise known as  "The Special Economic Zone Act of 
1831 
1995";  
1832 
(4) Section 69 of Republic Act No. 9593 otherwise known as  "The 
1833 
Tourism Act of 2009"  and its implementing rules and 
1834 
regulations which mandate the Tourism Infrastructure and 
1835 
Enterprise Zone Authority to grant franchises, supervise the 
1836 


operation of public utilities, and register, monitor and regulate 
1837 
enterprises within Tourism Enterprise Zones, are hereby 
1838 
repealed or modified accordingly; 
1839 
(5) Sections 7 and 8 on the adjudication of water pollution cases 
1840 
under Republic Act No. 3931 entitled,  An Act Creating The 
1841 
National Water And Air Pollution Control Commission,  
1842 
particularly with respect to Section 6 letters e, f, g, j, k 
1843 
Presidential Decree 984 entitled,  Providing for the Revision of 
1844 
Republic Act No.  3931, Commonly Known as the Pollution 
1845 
Control Law, and For Other Purposes; 
1846 
(6) Sections 4(1) and 7 of Republic Act No. 9275, otherwise known 
1847 
as the "Philippine Clean Wafer Act of 2004";  
1848 
(7) Articles 3(d) and 79 of Presidential Decree No. 1067, otherwise 
1849 
known as "The Wafer Code of the Philippines";  
1850 
(8) Sections 9, 10, 11, 12 and 13, Chapter II of Presidential Decree 
1851 
No. 856, otherwise known as the  "Code on Sanitation of the 
1852 
Philippines";  and  
1853 
(9) Section 3.2 (b) of Executive Order No. 149 Series of 1993 
1854 
transferring the Laguna Lake Development Authority from the 
1855 
Office of the President to the Department of Environment and 
1856 
Natural Resources. 
1857 
All other laws, presidential decrees, executive orders, presidential 
1858 
proclamations, rules and regulations, or parts thereof which are inconsistent 
1859 
with the provisions of this Act are hereby repealed or amended accordingly. 
1860 
SEC. 46. Effectivity. —  This Act shall take effect fifteen (15) days after its publication 
1861 
in the Official Gazette or in a newspaper of general circulation. 
1862 
Approved, 
1863