1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE and ERIC G. YAP 
EXPLANATORY NOTE 
In line with the streamlining efforts of the government bureaucracy under the current 
President BBM administration, there is an opportunity to provide an improved and 
effective management of our country’s water resources through the establishment of 
a Department of Water Resources. 
According to reports1, “more than 3 million people in the Philippines rely on unsafe and 
unsustainable water sources and 7 million lack access to improved sanitation. Despite its 
growing economy, the Philippines faces significant challenges in terms of water and sanitation 
access. The country is rapidly urbanizing, and its growing cities struggle to provide new 
residents with adequate water and sanitation services. In 2010, the government of the 
Philippines developed a road map to achieve universal water and sanitation services coverage 
by 2028.  In the Philippines and around the world, people are navigating the COVID-19 
pandemic, and millions are striving to endure this crisis with an added challenge. They lack 
access to life’s most critical resource – water. Now more than ever access to safe water is critical 
to the health of families in the Philippines.” 
There are various government agencies battling this recurring water and sanitation 
crisis and there is a need now more than ever to consolidate these efforts to avoid 
duplication of functions, improve public service delivery, and to prudently manage 
limited government resources to address this pressing concern. 
1 https://water.org/our-impact/where-we-work/philippines/ (last accessed 08 August 2022) 
August 17, 2022
10:08 am
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Hence, the introduction of this Bill establishing the Department of Water Resources 
which shall serve as the lead agency to implement and regulate water-related 
programs, policies, and projects of the country. 
In view of the foregoing, approval of this bill is earnestly sought. 
PAOLO Z. DUTERTE 
ERIC G. YAP 


1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE and ERIC G. YAP 
AN ACT 
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT 
AND 
CREATING 
THE 
DEPARTMENT 
OF 
WATER 
RESOURCES AND THE WATER REGULATORY COMMISSION, DEFINING 
THEIR MANDATES, POWERS AND FUNCTIONS, AND APPROPRIATINGS 
FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the “National Water Act.” 
SEC. 2. Declaration of Policy. - Access to water is a basic human right. All 
water belongs to the State which shall govern its development and utilization for the 
people. 
It is hereby declared the policy of the State to ensure the provision of safe, 
adequate, affordable, and sustainable water supply and improved sanitation 
services, while maintaining the protection, preservation, and revival of the quality 
of the country’s water resources and ecological balance. 
In pursuit of this policy, this Act shall have the principal objective of ensuring 
and accelerating universal access to water supply and sanitation services, in a 
regulatory regime that encourages responsible private sector participation, and 
shall foster and prioritize the establishment of infrastructure and public works 
that adopt innovative solutions and international best practices to address the 
challenges of climate change. Further, all water and water treatment infrastructure 
projects are hereby declared as projects imbued with national interest. 
SEC. 3. Definition of Terms. – As used in this Act: 
a. Bulk water supplier refers to any entity, natural or juridical, whether
public or private, supplying or intending to supply large quantities of raw
or treated water to buyers who will use these for their own consumption,
such as industrial companies, or for retail distribution to consumers such
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2 
as water service providers or real estate developers managing their own 
distribution network.  
 
b. Environmental services refer to qualitative functions of natural non-
produced assets of land, water, and air, including related ecosystems, and 
their biota, and which may be categorized into three basic types: (a) 
disposal services which reflect the functions of the natural environment 
as an absorptive sink for residuals; (b) productive services which reflect 
the economic functions of providing natural resource inputs and space 
for production and consumption, and (c) consumer or consumption 
services which provide for physiological as well as recreational and related 
needs of human beings. 
 
c. Flood Control refers to methods, acts, and protocols to be observed in order 
to prevent and reduce the detrimental and catastrophic effects of flood 
waters which include sediment-laden or turbid flows, and hyper-
concentrated flows or debris flows. 
 
d. Flood Risk Management (FRM) refers to such acts of defining and determining 
the appropriate methods, acts, and protocols aimed at preventing and 
reducing the risk of incurring loss of both life and property due to flood 
waters. Flood risk management consists of a cycle of prevention, mitigation, 
adaptation, preparedness and early warning, and response and 
recovery. The elements of FRM include: integrating land-use planning and 
coastal zone management into water management; adopting a holistic 
approach so that FRM is part of wider risk or multi- hazard management 
of earthquakes, landslides, and storm surges; managing risk and 
uncertainty as a whole so it not only mitigates hydrological uncertainties 
but also social, economic and political uncertainties on account of human 
behavior and the cultural dimensions of FRM. 
 
e. Gender Equality refers to the principle asserting the equality of men and 
women and their right to enjoy equal conditions realizing their full human 
potentials to contribute to and benefit from the results of development, and 
with the State recognizing that all human beings are free and equal in 
dignity and rights. 
 
f. Infrastructure and public works refer only to wholly or primarily water-
related projects and does not include projects that do not fall within the 
purview of the objectives, power and duties of the Department of Water 
Resources created under this Act. 
 
g. Integrated Water Resource Management (IWRM) refers to a systematic, 
collaborative, 
and multi-stakeholder process which promotes the 
coordinated development and management of water, land, and related 
resources within geophysical boundaries in order to maximize the 
resultant economic and social welfare in an equitable manner, and without 
compromising the sustainability of vital ecosystems. 


3 
h. Levels of water supply refer to communal sources of water described
according to location and size of the recipient human settlement as follows:
1. Level I or the point source is a protected well or a developed spring
with an outlet but without any distribution system, generally
adaptable to rural and upland areas where houses are thinly
scattered, and is a facility which usually serves an average of 15
households.
2. Level II or the communal faucet system or stand posts is a system
composed of a water source, a reservoir, a piped distribution network,
and communal faucets where one faucet serves 4 to 6 households and
is generally suitable for rural and urban fringe areas where houses are
clustered densely to justify a simple piped system.
3. Level III or the waterworks system or individual house connections is a
system with a water source, a reservoir, a piped distribution network
and household taps, suitable for densely populated urban areas.
i.
License refers to the Water Supply and/or Sanitation Services Operating
License that the Water Regulatory Commission is authorized to grant and
issue to service providers.
j.
Licensee refers to a service provider to whom a license is granted or
issued by the Water Regulatory Commission.
k. Missionary Water Services refer to water supply or services to areas that have
no existing safe water supply and services due to geographic limitation or
absence of economic and market viability.
l.
National Water Resources Management Plan (NWRMP) refers to a policy
document that contains a framework to guide the development and
management of all the water resources in the Philippines, the general
strategies and work to be pursued to ensure the sustainability of the resource
towards water security, and top-level direction on the utilization of
existing water resources in line with national development plans, policies,
and programs in accordance with the IWRM framework. The NWRMP
shall also include a water infrastructure development program or all
waters of the country as well as provide general guidance on how this shall
be supported within an integrated financing framework that can draw
from public, private, and international development funding sources.
m. Net Waste Load refers to the difference of the initial waste load of the
abstracted water and the waste load of the final effluent discharge of an
industry.
n. Regulatory Units refer to the offices established under Section 20 of this
Act which issue licenses authorizing the operation of Water Supply and
Sanitation Services, and provide, review, determine, fix, and approve water


 
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and sewerage tariffs, rates, and charges that licensees may impose.  
 
o. River basin refers to an area of land drained by a stream or body of fixed water 
and its tributaries which have a common outlet for surface run-off. 
 
p. River Basin Organization (RBO) refers to multi-stakeholder organizations 
which plan, coordinate, and monitor activities within a river basin cluster. 
 
q. Sanitation refers to the provision of facilities and services for the safe 
management of human excreta, from toilet to containment, and storage and 
treatment onsite or conveyance, treatment and eventual safe end use or 
disposal, and includes the safe management of solid waste and animal 
waste. 
 
r. Sediment management refers to control of sediment erosion and deposition in 
rivers, reservoirs, and coastal zones through non-structural and structural 
measures and control works.  
 
s. Sustainable Development Goals (SDGs) also known as the 17 Global Goals 
refer to the universal call to action to end poverty, protect the planet and 
ensure that all people enjoy peace and prosperity by 2030 adopted by all 
United Nations Member States in 2015. 
 
t. Septage is the liquid and solid material pumped from a septic tank, cesspool, 
or other primary treatment source. 
 
u. Septage Management refers to the provision of proper collection, treatment, 
and disposal of septage. 
 
v. Service Area refers to the area covered by the water distribution system, 
sewerage, and /or septage management services. 
 
w. Service Provider refers to any entity, natural or juridical, whether private or 
public, providing or intending to provide levels II & III water supply, 
including bulk water suppliers, sewerage, septage treatment, and disposal 
services for domestic, residential, industrial, or commercial use. 
 
x. Sewage refers to water borne human or animal wastes, excluding oil or oil 
waste, removed from residences, buildings, institutions, and industrial and 
commercial establishments together with such groundwater, surface water 
and storm waters as may be present including such waste from vessels, 
offshore structures, other receptacles intended to receive or retain waste or 
other places or the combination thereof. 
 
y. Sewerage refers to any system or network of pipelines, ditches, channels or 
conduits including pumping stations, lift stations and force mains, 
service 
connections 
including 
other infrastructure, 
devices, 
or 
appliances appurtenant thereto, which include the collection, transport, 


 
5 
pumping and treatment of sewage to a point of disposal. 
 
z. Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose sewage. 
 
aa. Social inclusion refers to the process of improving the terms for 
disadvantaged individuals and groups to take part in society. 
 
bb. Tariffs refer to such amounts which may be charged by licensees for their 
water supply and sanitation services based on principles, standards, and 
guidelines established by the Department of Water Resources. 
 
cc. Water Demand Management (WDM) refers to any method, whether 
technical, economic, administrative, financial, or social that will accomplish 
one or more of the following: 
 
1. Reduce the quantity or quality of water required to accomplish a 
specific task;  
2. Adjust the nature of the task or the way it is undertaken so that it can 
be accomplished with less water or with lower quality water; 
3. Reduce the loss in quantity or quality of water as it flows from 
source, through use, to disposal; 
4. Shift the timing of use from peak to off-peak periods; and 
5. Increase the ability of the water system to continue to serve society 
during times when water is in short supply. 
 
dd. Water Districts refer to government-owned and controlled corporations 
organized under Presidential Decree No. 198, as amended, created 
primarily to acquire, install, operate, maintain, and improve water 
supply and distribution systems for domestic, industrial and municipal 
uses of residents and to provide, maintain and operate waste water 
collection, treatment and disposal facilities within the boundaries of the 
district. 
 
ee. Water pollution refers to any alteration of the physical, chemical, biological, 
or radiological properties of a body of water resulting in the impairment of 
its purity or quality. 
 
ff. Water Resource refers to water under the ground or groundwater, water 
above the ground such as surface water, run-offs, floods, stormwater and 
urban drainage, treated wastewater, water in the atmosphere or rain water, 
and the waters of the sea within the territorial jurisdiction of the Philippines. 
 
gg.  Water Resources Regions refer to the contiguous clusters of river basins 
which are grouped together according to the hydrological boundaries, 
physiographic features, and homogeneity in climate, whether or not they 
straddle different local government units, for administrative purposes 
under the Department of Water Resources. 


 
6 
 
hh. Water Service Provider (WSP) refers to the water district, any Local 
Government Unit (LGU) - run water utility, Barangay Waterworks and 
Sanitation 
Association 
(BWSA), 
Rural Waterworks 
Sanitation 
Association (RWSA), cooperative and private sector entity that provides 
water supply services to any given area. 
 
ii. Water supply service refers to any activity comprising Levels I, II and III 
water supply including bulk suppliers, suppliers to subdivisions, and other 
water service providers. 
 
 
CHAPTER II 
THE DEPARTMENT OF WATER RESOURCES 
 
SEC. 4. The Department of Water Resources – There is hereby created and 
established the Department of Water Resources, hereinafter referred to as the 
Department. 
 
SEC. 5. Mandate of the Department. –The Department shall be the primary 
agency responsible for the comprehensive and integrated identification and 
mapping of all water resources, planning, policy formulation, and management of 
the ownership, appropriation, utilization, exploitation, development, and protection 
of water resources in the Philippines to ensure the optimal use thereof for domestic and 
municipal water supply, sanitation, irrigation, hydropower, industry, navigation, 
flood management, and recreation except fisheries or aquaculture.  
 
The Department shall also be the primary agency responsible for the 
planning and policy formulation towards the attainment of universal access to safe, 
adequate, affordable, and sustainable water supply, and improved sanitation services 
for all Filipinos. 
 
The Department shall be the primary national agency to enforce Presidential 
Decree No. 1067 otherwise known as The Water Code of the Philippines and Republic Act 
No. 9275, otherwise known as the Philippine Clean Water Act of 2004. 
 
The Department shall exercise the powers and functions of the defunct 
Pasig River Rehabilitation Commission created under Executive Order No. 54 Series 
of 1999 and abolished under Executive Order No. 93 Series of 2019, specifically the 
following roles that were transferred to the Manila Bay Task Force and DENR 
through the latter EO: 
 
a. Update and take the lead in the overall implementation of the Pasig River 
Rehabilitation Master Plan, which shall harness the Pasig River’s potential 
for transportation, recreation and tourism purposes while undertaking the 
rehabilitation and restoration of its maritime life; and 
 
b. Ensure that the easements provided for in the Civil Code and other 


 
7 
relevant laws are enforced, especially in all the esteros and waterways 
that drain into the Pasig River as well as abate the dumping of untreated 
industrial wastewater and sewerage into the river, including all acts and 
omissions in violation of Presidential Decree (PD) No. 984, s. 1976, as 
amended entitled, Providing For The Revision Of Republic Act No. 3931, 
Commonly Known As The Pollution Control Law, And For Other Purposes, PD 
No. 274, s. 1973 entitled, Pertaining To The Preservation, Beautification, 
Improvement And Gainful Utilization Of The Pasig River, Providing For The 
Regulation And Control Of Pollution Of The River And Its Banks In Order To 
Enhance Its Development, Thereby Maximizing Its Utilization For Socio-
Economic Purposes, and other related laws. 
 
SEC. 6. Guiding Principles. – In the pursuit of its mandate, the Department 
shall be guided by the following key principles: 
 
a. The concept of good water governance for water security and sufficiency 
shall be adopted across all levels of governance by stakeholders such 
as 
the 
national 
government, 
local government, non-government 
organizations, private organizations, individuals, even global societal 
actors, and in various sectors such as water supply, irrigation, fisheries, 
hydropower, navigation, ecosystem services, flood management, climate 
change, and recreation. It shall entail publicly transparent, socially 
accountable, and multi-stakeholder participatory water policy planning, 
management, and decision-making processes. 
 
b. Access to safe water supply and improved sanitation is a human right that 
needs to be fulfilled and protected. 
 
c. Integrated Water Resource Management (IWRM) shall be adopted as the 
basic framework which is the coordinated development and management 
of water, land, and related resources within hydrological boundaries 
to 
optimize economic and 
social welfare without compromising the 
sustainability of vital ecosystems. The IWRM Framework shall include an 
enabling environment that utilizes proper policies, legal instruments, 
and institutional frameworks for effective implementation, participatory 
and 
collaborative 
water 
policy 
and management decisions, and 
management instruments for efficient use of updated and accurate data, 
science-based decision support systems, proper information, education, 
communication (IEC) programs, assessment and allocation tools, or 
regulatory functions. It shall observe the mutual accountability mechanism 
among stakeholders at the national, regional, and global levels reinforcing 
multi-stakeholder decision-making following a framework with specific, 
measurable, attainable, relevant, and timely actions. 
 
d. Each river basin has its unique characteristics relating to the physical, socio 
cultural, and other aspects, and water management shall be performed at 
river-basin level, involving all the stakeholders at that particular river 
basin. 


 
8 
 
e. Integrated and accurate data collection and analysis and the use of scientific 
decision support systems shall be undertaken in water resources 
management including flood modeling and warning systems that are 
essential for an effective, efficient, and sustainable water resources 
management system.  
 
f. The development of water resources shall include strategies for the 
mitigation of water-related hazards and climate change adaptation. 
 
g. Water resources and services should be provided where they are intended 
and most needed so that water is fairly and sustainably managed. 
 
h. The proper operation and maintenance of waterworks systems resulting 
in the uninterrupted and adequate supply and distribution of potable water 
for domestic and other purposes, and the proper operation and maintenance 
of sewerage systems which are essential services to public health and safety, 
are to be ensured at all times. The State shall therefore supervise and control 
the establishment, operation, and maintenance of such systems. 
 
SEC 7. Objectives of the Department. – The Department shall: 
 
a. Promote and adopt water demand management as a national policy to 
ensure that water is optimized, that water efficiency and conservation 
become a way of life, that the recycling and reuse of water and treated 
wastewater are widely practiced, that water is properly priced to 
encourage efficient use and conservation and that rainwater, flood waters, 
and run-offs are captured or harvested, stored and treated for future use;  
 
b. Prioritize and seek the immediate attainment of universal access to safe, 
adequate, affordable and sustainable water supply and improved 
sanitation services for all Filipinos in a manner consistent with the 
protection, preservation, and revival of the quality of the country’s water 
resources, and to adopt all needed measures to advance the right of the 
people to a balanced and healthful ecology in accord with the rhythm and 
harmony of nature.  
 
c. Strengthen and coordinate integrated water resources management 
planning and policy making to ensure sustainable and fair allocation and 
efficient use of water resources among competing uses and users;  
 
d. Ensure that integrated water resources management is strongly 
coordinated with land use and coastal and multi-hazard planning and 
management;  
 
e. Develop sustainably, and manage water sources and water resources 
toward water security, taking into consideration water, land, and related 
resources aimed at increasing water dependability for different uses, 


 
9 
optimizing economic benefits and social welfare without compromising 
the sustainability of vital environmental systems;  
 
f. Strengthen and coordinate policy making and planning towards ensuring 
the availability of water for food security and energy security, as well as 
towards the protection of communities and environments against flood and 
other water induced hazards including sediment hazards; 
 
g. Ensure that the strategy for water resources development and conservation 
is participatory, and that planners, policymakers and users including 
community members are involved at all levels;  
 
h. Develop a standardized pricing framework for water use that accounts 
for environmental externalities; and  
 
i. Ensure that all sources of water, including surface water, groundwater, 
rainwater and floodwater are identified, mapped, monitored, conserved 
and managed for productive use and the resulting wastewater is managed 
properly, reused, and responsibly disposed of following approved 
environmental standards. 
 
SEC.8. Powers and Functions of the Department. – The Department shall have 
the following powers and functions: 
 
I. 
Policymaking and Planning 
 
a. Ensure that Integrated Water Resources Management (IWRM) is adopted 
as the strategic framework for water management policymaking and 
planning in the country and coordinate the implementation, promotion, 
revision and enhancement of IWRM plans; 
 
b. Formulate policies, strategies, and targets in coordination with other 
relevant entities to meet the goals and objectives for water supply and 
sanitation, water quality, irrigation, hydropower, flood control, stormwater 
utilization, and urban drainage. Such policies shall, among other 
guidelines, integrate the issues of water and sanitation, food security, 
energy, environment and flood control, and climate change; 
 
c. Formulate and develop policies to promote universal access to safe, 
adequate, affordable, and sustainable water supply, and improved 
sanitation services for all Filipinos; 
 
d. Regularly update, every five years or as deemed necessary by the 
Department, and in consultation with other agencies and stakeholders, 
the NWRMP following the IWRM framework and integrate therein a 
national land use plan; 
 
e. Undertake river basin survey, inventory and appraisal of water and 


 
10 
related resources, and develop comprehensive basin-wide plans of 
storage, 
retardation, 
and 
control 
to 
maximize conservation and 
multipurpose use of water in the basin; 
 
f. Conduct continuing hydrological and hydrometeorological surveys and 
studies of the country’s renewable water supply, and establish, operate, 
and maintain observation station networks with 
a view towards 
formulating long-term policies to balance the sustainability and 
optimal multiple use of water resources, defining the hydrologic 
boundaries of basins of the existing water supply sources and developing 
or updating and implementing countrywide comprehensive basin-wide 
master plans;  
 
g. Strengthen and coordinate policy making and planning for flood 
management, integrated with stormwater or urban drainage and 
appropriate retention or retarding basins in order to harvest and reuse 
water, and to plan against, prevent, and minimize the detrimental and 
catastrophic effects of flooding;  
 
h.  Assist and provide the National Economic and Development Authority 
(NEDA) with the required data and input from the water sector in the 
formulation of the country’s short-term and long-term 
strategic 
development plans and actions, and recommend to the NEDA Board the 
adoption of general policies and guidelines for water resources 
development;  
 
i. Review, approve, and provide oversight over all water-related development 
plans and programs of any agency within the context of the NWRMP, and 
overall national plans and programs; 
 
j. Develop and implement, in coordination with other relevant agencies, 
effective 
codes, standards, benchmarks, and reasonable guidelines to 
ensure the safety of all public and private water structures in the country, 
and assure efficiency and proper quality in the construction of water, 
sanitation, 
irrigation, 
hydropower, 
flood 
control 
and 
drainage 
infrastructure; 
 
k. Ensure that gender equality, social inclusion, environmental protection, 
climate resiliency, and disaster risk reduction are integrated into any water 
resource management planning, policy making, and the design and 
construction of water infrastructure; 
 
l. Ensure that the planning and design of water infrastructure considers the 
highest efficiency and most appropriate technology and quality, in 
accordance with national development objectives;  
 
m. Review existing guidelines appropriate for private sector participation in 
the water sector and submit recommendations to the Public-Private 


 
11 
Partnership (PPP) Center of NEDA and other concerned agencies to 
promote and enable more PPPs in the sector; 
 
n. Build a central repository of water data and effect inter-sectoral, inter-
agency, and inter-departmental coordination on all aspects of data 
gathering and management for water resources development planning and 
compel the submission of statistics and data on water utilization with the 
aim of operationalizing the integrated approach to water resources 
management; 
 
o.  Ensure the effective implementation of all the provisions of Republic 
Act No. 9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, 
Chapter II of Presidential Decree No. 856, otherwise known as the Code on 
Sanitation of the Philippines; 
 
p. Promote Philippine participation in information sharing and education 
on best practices in support of international efforts to achieve universal 
access to safe water and improved sanitation; and the integration of 
water, energy, environment and food security; and 
 
q. Issue and promulgate rules, regulations and guidelines as may be necessary 
to implement and enforce its powers and functions under this Act. 
 
II. Resource Regulation 
 
a. Manage and conserve the country’s water resources to ensure the 
optimal use thereof for domestic water supply, sanitation, irrigation, 
hydropower, navigation, flood control, and recreation purposes, and 
enhance and maintain water quality, conserve watersheds, control water 
pollution, and restore the environment, without compromising the 
natural ecosystem functions and services; 
 
b. Regulate and control the utilization, abstraction, diversion and development 
of water resources, taking in consideration their equitable distribution 
among competing demands and determine the standards of beneficial 
and priority uses of water in times of crisis and national emergencies; 
 
c. Formulate, promulgate, and enforce rules and regulations for the 
development and optimum use of water resources and its administration 
and management, including coherent water protocols, operating rules of 
all existing and future water infrastructure; general criteria, methods 
and standards for basic data collection and project identification, 
formulation and planning, and appropriate sanctions to be imposed for 
non-compliance;  
 
d. Regularly review regulations prescribed by any government agency 
pertaining to water use, exploitation, development, and conservation or 
protection of waters, water resources, and watershed or basin areas with 


 
12 
respect to this Act; 
 
e. Impose fees or charges, as may be deemed necessary for water resources 
conservation and protection, such as: 
1. Polluter’s Fee, which shall be based on the net waste load depending 
on the wastewater charge formula pursuant to Republic Act No. 9275; 
2. Raw water price, which shall take into account, among others, the 
scarcity of water; and 
3. Appropriate payment structures for environmental services: 
 
f. Deputize LGUs to collect the national fees or charges for resource 
regulation within their respective jurisdictions;  
 
g. Collect, regularly update, monitor, and analyze water resources data 
including climatology, hydrological and other water-related data and 
ensure that such data is easily accessible by relevant and authorized users; 
 
h. Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and 
appraisal of surface and groundwater potentials of the country, and 
determine the annual renewable water available per water resources region; 
 
i. Maintain a database that will contain updated relevant information on water 
data which will be accessible by relevant and authorized users; 
 
j. Develop and continuously update a computerized decision support 
system that incorporates data management systems relating to acquisition 
and database, model base in terms of physical design, planning and 
decision models, and user-friendly interface concerning graphical and 
visualization tools; 
 
k. Conduct and promote special studies and research on water economics 
and other water resources development and management issues and 
concerns such as climate change, weather modification, flood monitoring 
and modeling, environmental quality, and desalination; and 
 
l. Raise 
public 
awareness 
through 
information, 
education 
and 
communications programs, and build capacities for informed participation 
in water resources management at the national and river-basin level. 
 
III. Institutional Arrangement with Public Water Organizations 
 
a. Develop guidelines including rules of partnership, between and among the 
Department, field offices of national government agencies, LGUs and 
other stakeholders in water resource management, and facilitate the 
establishment of multi-stakeholder river basin organizations (RBOs) per 
river basin, and strengthen and support existing RBOs and monitor their 
activities; 


 
13 
 
b. Develop materials for capacity building and training of prospective RBOs; 
 
c. Authorize its representatives or any deputized agent to enter any property 
of public dominion with or without prior notice and consent, any private 
land, building or enclave, whether inhabited or not, for the purpose of 
conducting hydrologic surveys and investigations, including assessing and 
evaluating the conditions of water facilities installed, and determining 
compliance with water laws and standards; 
 
d. Provide 
technical 
assistance 
to 
water 
users 
including 
farmers, 
communities, and LGUs and other water service providers (WSP) whether 
directly or in coordination with other agencies on all aspects of integrated 
water resources management; 
 
e. Respond to consumer complaints, and ensure the adequate promotion of 
consumer interests;  
 
f. Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Department;  
 
g. Appoint, hire, and maintain adequate staff and personnel, advisers or 
consultants with suitable qualifications and experience, as necessary, 
subject to existing rules and regulations. 
 
IV. Coordination 
 
a. Coordinate and integrate water resources development activities of the 
country within the context of national plans and policies for social and 
economic development; 
 
b. Coordinate with other government agencies, universities, academe and 
private professional groups in all aspects of data gathering, the conduct of 
special studies and research on all related aspects of water resources 
management and development such as climate change, environmental 
quality, desalination, and the development of operating strategies, 
procedures, and protocols and accompanying computerized decision tools 
for major water facilities; 
 
c. Coordinate with the concerned and relevant agencies engaged in flood 
control, flood risk management, and drought risk management; and  
 
d. Coordinate proactively with LGUs to ensure the integration of water 
resources development plans into their comprehensive land use plans 
(CLUPs), Comprehensive Development Plans (CDPs) or Provincial 
Physical Framework and Development Plan (PPFDP). 
 
V. Other Functions 


 
14 
 
a. Create when necessary, water resource subsidiaries, instrumentalities, and 
entities to engage in water transmission, water distribution, waste water 
treatment and management, and sanitation in accordance with existing 
relevant laws. 
 
b. Enter into contracts, joint venture agreements or understanding, public-
private partnerships, and memorandum of agreements or understanding, 
either domestic or foreign, relating to investment and financing water-
related projects, under such terms and conditions as the Department 
may deem proper and reasonable subject to existing laws. 
 
c. Exercise such other powers and functions necessary or incidental to the 
effective administration and management of the country’s water resources. 
 
SEC. 9. Secretary of the Department of Water Resources. – The authority and 
responsibility for the exercise of the mandate of the Department and for the 
discharge of its powers and functions shall be vested in the Secretary of the 
Department, hereinafter referred to as the Secretary, who shall: 
 
a. Advise the President on the promulgation of executive or administrative 
orders, regulations, proclamations and other issuances relative to matters 
under the jurisdiction of the Department;  
 
b. Establish the policies and standards for the operation of the Department 
pursuant to the President’s guidelines; 
 
c. Promulgate rules and regulations necessary to carry out the objectives, 
policies, and functions of the Department; 
 
d. Exercise supervision and control over all bureaus and offices under the 
Department; 
 
e. Supervise all attached agencies and corporations in accordance with law; 
 
f. Represent the Department in contracts, awards, and other similar 
agreements; 
 
g. Delegate authority for the performance of any power or function, as defined 
herein to officials and employees under his direction as deemed appropriate; 
 
h. Act as the Chairperson of the governing board of the attached agencies of 
the Department; 
 
i. Designate and appoint officers and employees of the Department, 
excluding the Undersecretaries, Assistant Secretaries, and Regional and 
Assistant Regional Directors, in accordance with the civil service laws, 
rules and regulations; and 


 
15 
 
j. Perform such other duties and responsibilities as may be provided by law. 
 
SEC. 10. Office of the Secretary. – The Office of the Secretary shall be 
composed of the Secretary, Undersecretary, Assistant Secretary and the Secretary’s 
immediate staff. 
 
SEC. 11. Undersecretaries. – The Secretary shall be assisted by not more 
than five (5) Undersecretaries, who shall be appointed by the President upon the 
recommendation of the Secretary namely: Undersecretary for Resource Regulation 
and Governance, Undersecretary for Inland Waters and Water for Agriculture, 
Undersecretary for Resource Development, Undersecretary for Planning and Policy 
and Undersecretary for Missionary Water, Indigenous People, and Special Concerns. 
 
The Secretary is hereby authorized to delineate and assign the respective 
functional areas of responsibility of the Undersecretaries in accordance with the 
mandate and objectives of the Department: Provided, That no Undersecretary 
shall be assigned purely to administrative responsibilities. Within their respective 
functional areas of responsibility, the Undersecretaries shall:  
 
a. Advise and assist the Secretary in the formulation and implementation of 
the policies, plans, programs and projects of the Department;  
 
b. Supervise all the operational activities of the assigned units for which the 
Undersecretary is responsible to the Secretary; and  
 
c. Perform such other functions deemed necessary as may be assigned or 
delegated by the Secretary to promote efficiency and effectiveness in the 
delivery of public services or as may be required by law: 
Provided, 
That the Undersecretary for Planning and Policy shall, in coordination 
with the Planning and Policy Service, be primarily responsible for 
advancing current efforts in attaining the ultimate goal of universal access 
to water supply and sanitation systems, and sustainable management of 
water resources under the SDGs, and the integration of water, energy, 
environment and food security. 
 
SEC. 12. Assistant Secretaries. – The Secretary shall be assisted by six (6) Assistant 
Secretaries to be appointed by the President of the Philippines upon the 
recommendation of the Secretary: one each for Planning and Policy Service, Decision 
Support System Service, Resource Regulatory Service, Comptrollership and Financial 
Management Service, Legal and Legislative Service, and Administrative and Human 
Resources Management Service. 
 
No person shall be appointed Secretary, Undersecretary and Assistant 
Secretary of the Department unless the person is a citizen and resident of the 
Philippines, of good moral character, of proven integrity, competence and expertise in 
water resource management: Provided, That at least one (1) of the Undersecretaries and 
at least two (2) of the Assistant Secretaries shall be career officers. 


 
16 
 
SEC. 13. Organizational Structure. – The Department shall be composed of 
the following organizational units: 
 
a. Department Proper. – The Department shall consist of the Office of the 
Secretary, the Offices of the Undersecretaries and Assistant Secretaries, the 
Internal Audit Office, the Public Affairs Office, the Water Pollution 
Adjudication Board, the Planning and Policy Service, Decision Support 
System Service, Administrative and Human Resources Service, Legal and 
Legislative Service, Comptrollership and Financial Management Service, 
Resource Regulation Service, and the Water Resources Regional Offices. 
 
b. Attached agencies. - The Department shall exercise administrative 
supervision over the following agencies for purposes of policy and 
program coordination, monitoring, and evaluation: 
 
1. The Local Water Utilities Administration (LWUA), whose mandate, 
powers, and functions are defined in Presidential Decree No. 198, 
otherwise known as the Public Water Utilities Act of 1973, as amended, shall 
be transferred from the Department of Public Works and Highways and 
attached to the Department. It shall continue to primarily function as 
a specialized lending institution for the promotion, development, and 
financing of local water utilities. In the implementation of its functions, 
the LWUA shall: 
 
i. 
Prescribe minimum standards and regulations in order to assure 
acceptable standards of construction materials and supplies, 
maintenance, operation, personnel training, accounting and fiscal 
practices for local water utilities; 
ii. 
Furnish technical assistance and personnel training programs for local 
water utilities;  
iii. 
Monitor and evaluate local water standards; and 
iv. 
Effect system integration, joint investment and operation, district 
annexation and de-annexation whenever economically warranted as 
amended by Sec. 22, Presidential Decree No. 768. 
 
2. The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandate, powers, and functions are defined under Republic Act No. 
6234, as amended entitled, An Act Creating The Metropolitan Waterworks 
And Sewerage System And Dissolving The National Waterworks And 
Sewerage Authority; And For And For Other Purposes, shall be transferred 
from the DPWH and attached to the Department: Provided, That the 
MWSS shall continue to facilitate the exercise by the concessionaires of 
their responsibility; carry out accounting and notification functions; 
monitor, report, and administer loans; perform related functions in 
connection with existing projects; manage and dispose its retained 
assets; and manage and operate the Umiray-Angat Transbasin Project. 
3. The National Irrigation Administration (NIA), whose mandate, powers, 


 
17 
and functions are defined under Republic Act No. 3601 as amended by 
Presidential Decree No. 552 and Presidential Decree No. 1702; 
4. The Laguna Lake Development Authority (LLDA), whose mandate, 
powers and functions are defined under Republic Act No. 4850, as 
amended entitled, An Act Creating The Laguna Lake Development 
Authority, Prescribing Its Powers, Functions And Duties, Providing Funds 
Therefor, And For Other Purposes shall be transferred from the DENR and 
attached to the Department. 
 
The LLDA shall continue to serve as the lake management and 
development authority similar to a multi-stakeholder river basin 
organization and shall ensure the implementation of the Laguna Lake 
Master Plan which shall be updated by the Department to ensure 
alignment with the NWRMP. 
 
Any other agency performing water resources management, conservation 
and protection functions may be transferred to the Department as the 
President deems necessary. 
 
c. Offices, Functions and Personnel to be Completely Subsumed under the 
Department. – The following offices with their powers, functions, personnel, 
applicable funds and appropriations, records, equipment and property shall 
be subsumed under the Department: 
 
1. The National Water Resources Board (NWRB) with all its divisions and 
sections, whose mandate, powers and functions are provided in 
Presidential Decree No. 424, as amended;  
2. The River Basin Control Office (RBCO) of the DENR whose mandate, 
powers and functions are provided in Executive Order No. 510 and 
Executive Order No. 816, as amended; 
3. The Manila Bay Coordinating Office (MBCO) of the DENR which was 
strengthened by virtue of DENR Administrative Order (DAO) 2011-01 to 
coordinate the efforts of the fourteen (14) national agencies covered by 
the Mandamus Order of the Supreme Court to rehabilitate Manila Bay; 
4. The Water Resources Management Division of the Bureau of Soils and 
Water Management of the Department of Agriculture (DA); 
5. The Water Supply and Sanitation Unit of the Department of the Interior 
and Local Government (DILG); and 
6. The Water Quality Management Section of the Environmental 
Management Bureau (EMB) of the DENR. 
 
d. Functions to be Transferred to the Department. – The following functions of 
the respective agencies, bureaus, and units shall be transferred to the 
Department: 
 
1.  The hydrological surveys and groundwater mapping function of the 
Mines and Geosciences Bureau (MGB) of the DENR; 
2. The hydrological surveys monitoring of stream flow and water data 


 
18 
collection function of the Bureau of Design and Bureau of Research and 
Standards of the DPWH; 
3. The protection and conservation of natural wetlands such as lakes, 
marshes, swamps of the Biodiversity Management Bureau of the DENR;  
4. The 
planning, 
programming, 
administration, 
monitoring, 
management of the National Sewerage and Septage Management 
Program (NSSMP) by the DPWH. 
5. The flood management planning and sediment management function of 
the Flood Control Management Cluster of the DPWH; 
6. The Water Resource Management Division and the water research 
functions of the Soils and Water Research Division of the Bureau of Soils 
and Water Management under the DA. All soil-related functions shall be 
retained under the Bureau which shall be renamed as the Bureau of Soils. 
 
e. Support Services - The Department shall create the following support 
services: 
 
1. The Planning and Policy Service shall provide the Department with 
the capability to undertake water infrastructure development planning 
and programming, and shall exercise the following functions: 
 
i. 
Advise the Secretary on all matters relating to water resources 
planning; 
ii. 
Assist the Undersecretary for Planning and Policy on all matters 
related to the specific functions of the position; 
iii. 
Formulate 
strategies 
and 
priorities 
for 
water 
resources 
management 
and development 
consistent 
with 
national 
development objectives, and initiate or undertake relevant surveys 
for development planning; 
iv. 
Develop and regularly update a comprehensive and integrated 
National 
Water Resources Management Plan and ensure its 
integration into existing land use plans; 
v. 
Coordinate river-basin planning following the integrated water 
resources management framework and the river-basin approach; 
vi. 
Formulate or update existing River Basin Master or Comprehensive 
Plans which includes all aspects of water management and 
development such as water supply and sanitation, irrigation, flood 
control and stormwater or urban drainage, drought risk 
management, water resource development systems and other 
public water works projects, including phasing of implementation; 
vii. 
Identify, based on the river basin master plan, priority packages 
for water infrastructure development per river basin, including 
water supply, sanitation, irrigation, flood  control  and  stormwater  
or  urban  drainage,  drought  risk management, water resource 
development systems and other public works projects, package 
project  
proposals 
for 
funding 
and 
prioritize 
project 
implementation and the allocation of funds and other resources and 
undertake or supervise and evaluate the conduct of feasibility 


 
19 
studies and project preparation thereof; 
viii. 
Evaluate 
and 
appraise 
all 
regional 
and 
inter-regional 
infrastructure water development plans and programs as to their 
feasibility and consistency with approved strategies and medium 
and long -term plans; 
ix. 
Gather, analyze, and organize needed statistical data and 
information; 
x. 
Provide technical assistance related to its functions to the other 
services, bureaus and the regional offices as needed;  
xi. 
Conduct hydrological and hydraulic surveys and assessments of 
surface waters; 
xii. 
Develop general criteria and standards on project investigation, 
formulation, planning; 
xiii. 
Develop guidelines and standards on social inclusion in water 
resources management and ensure policies, programs and plans are 
compliant with the gender and development framework of the 
government; 
xiv. 
Coordinate closely with PAGASA for rainfall and other climate data 
which shall be considered in the planning for water resources 
development and management and for various water infrastructure; 
and 
xv. 
Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective attainment of the 
abovementioned objectives. 
 
2. The Decision Support System Service shall provide the Department with 
water resource management tools and computerized decision support 
system that incorporates a data management system relating to 
acquisition and database and model base in terms of physical design, 
planning and decision models including services related to networking, 
data management, and information and knowledge or learning 
management systems for administrative and non-technical support It 
shall provide the Secretary timely reports on the status of various 
Department projects and activities. For this purpose, it shall exercise the 
following functions: 
 
i. 
Provide the Secretary the necessary data and processed information 
to aid in policy and management decisions under the mandate of the 
Department; 
ii. 
Publish available real-time raw water data as well as verified or 
validated water data in print or electronic form using latest internet 
technology;  
iii. 
Conduct and publish in print and/or electronic form, standard data 
analysis such as basic statistical analysis, trend analysis, analysis of 
runs, and cluster analysis; 
iv. 
Develop and continuously update water resource management, 
computerized decision support systems (DSS) that incorporate data 
management systems relating to acquisition and database, model 


 
20 
base in terms of physical, design, planning and decision models, 
and user-friendly interface such as graphical and visualization tools. 
The DSS is composed of: 1) a measurement or data acquisition system; 
2) information or database management system; 3) analytical and 
numerical models for design, planning, decision or evaluation 
purposes, and 4) a user-friendly interface which includes graphical 
interface or visualization tools. 
v. 
Develop and maintain specific models to include the following: 
 
a. long-term climatologic and weather forecasting model; 
b. watershed models and river-flood plain models; 
c. groundwater models and coupled to surface water models; 
d. flood forecasting model for major rivers; 
e. optimization-simulation 
management models for watershed 
conservation, conjunctive 
surface 
and 
groundwater 
use, 
irrigation scheduling, normal and emergency operations of 
multi-purpose reservoirs; and 
f. water quality and ecological models. 
 
vi. 
Develop and administer the management information system and 
knowledge systems of the Department to: 
 
a. Retrieve, process, and monitor information on all projects and 
activities in the web portal; 
b. Conduct and apply systems and process engineering, software 
development, software configuration management; 
c. Develop and manage its corporate database, unified database for 
water industry, data warehouse, other water information 
resources, library services and document management and 
archiving services; 
d. Develop and manage its Information and Communications 
Technology 
(ICT) infrastructure and ICT related-services 
including computer networking and voice communications 
services and data exchange, and  
e. Manage the literacy and training services of the Department on 
various ICT and, Knowledge Management (KM) tools and 
applications, including information and knowledge management. 
 
vii. 
Perform such other related functions and activities which are 
necessary for the effective administration of the management 
information and knowledge systems of the Department. 
 
3. The Administrative and Human Resource Service shall provide the 
Department with services relating to human resources development, 
personnel records, facilities maintenance, medical and dental, security, 
property and procurement services, and shall exercise the following 
functions: 
 


 
21 
i. 
Advise the Secretary on all matters relating to internal 
administration and human resources management; 
ii. 
Prepare and implement an integrated personnel development plan 
that shall include provisions for merit promotions, performance 
evaluation, job rotation, incentive awards systems, and health and 
welfare services; 
iii. 
Provide services related to human resource training, education 
and development including 
manpower, 
career planning and 
forecasting, and development of indigenous training materials;  
iv. 
Develop, establish, and maintain an efficient and cost-effective 
property procurement system and facilities and coordinate or 
otherwise interface with relevant agencies, whether government or 
private, for the purpose of developing or upgrading the system; 
v. 
Develop, establish, and maintain an efficient and effective 
security system covering, among others, personnel, physical 
installations, 
facilities, 
equipment, documents and materials 
including the conduct of security investigations;  
vi. 
Coordinate with the appropriate government agencies for a more 
efficient conduct of administrative processes;  
vii. 
Develop, establish, and maintain an efficient records system; 
viii. 
Provide assistance in its area of specialization to the Department 
Proper, bureaus and regional and water district offices and, when 
requested, to the government agencies and corporations attached to 
the Department; and Perform such other related functions and 
activities which are necessary for the effective management of the 
resources of the Department, including its human resources. 
 
4. The Legal and Legislative Research Service shall provide the Department 
with services on such legal affairs as contract letting and litigation, legal 
and legislative research, complaints and investigation, legal counselling 
and other matters of law, and shall exercise the following functions: 
 
i. 
Advise the Secretary on all matters relating to legal and legislative 
affairs; 
ii. 
Prepare Department contracts and legal instruments, review and 
interpret 
all contracts and agreements entered into by the 
Department and evaluate all legal proposals; 
iii. 
Conduct 
administrative 
investigation 
and 
the 
review 
of 
administrative charges against officers and employees of the 
Department; 
iv. 
Exercise functional jurisdiction over the legal staffs of Regional 
Offices; 
v. 
Provide legal assistance to the Department Proper, the bureaus and 
regional offices and when requested, the attached corporations; 
vi. 
Develop and prepare the Department’s Legislative Agenda, 
recommend presidential certification of the urgency of priority water 
bills, and other water-related legislation; 
vii. 
Coordinate and maintain linkages between and among the various 


 
22 
offices, bureaus, regional offices and attached agencies to the 
Department along with other government agencies on policy 
matters affecting the Department’s mandate in relation to 
legislation;  
viii. 
Perform liaison and networking activities in relation to the 
enactment of related laws relating to water resources issues in 
legislative policymaking bodies such as the Senate of the Philippines, 
the House of Representatives, and the various Sanggunians;  
ix. 
Monitor the progress of the Department’s priority or certified bills 
to ensure their passage; and  
x. 
Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective performance of the 
abovementioned objectives. 
 
5. The Comptrollership and Financial Management Service shall provide the 
Department with coordinated services relating to financial systems 
and 
procedures, 
budget, 
cash, accounting 
and 
all 
financial 
housekeeping matters, and shall exercise the following functions: 
 
i. 
Advise the Secretary on all matters relating to the accounting 
of government expenditures and receipts, budgeting and cash 
management, 
project 
finances 
and financial systems and 
procedures;  
ii. 
Prepare budget proposals and pursue formal budget authorizations, 
undertake budget execution, and prepare and submit all appropriate 
reports to the proper offices;  
iii. 
Develop 
and 
maintain 
accounting, 
financial 
and 
assets 
management systems, procedures and practices in the Department 
Proper, Bureaus and Regional Offices; 
iv. 
Review and appraise systems and procedures, organizational 
structure, assets management practices, accounting, and other 
records, reports, and performance standards such as budgets and 
standard costs of the Department, bureaus, and regional offices; 
v. 
Provide assistance in its area of specialization to any unit of the 
Department and, when requested, to government corporations and 
councils attached to the Department; and 
vi. 
Perform such other related functions and activities which are 
necessary for the effective financial management of the Department. 
 
6. The Resource Regulation Service shall provide the Department with 
services for the effective regulation of all water-related services and 
activities and shall exercise the following functions: 
 
i. 
Advise the Secretary on all matters relating to resource regulations; 
ii. 
Determine, grant and regulate water rights for the appropriate, 
optimal and sustainable use of surface and ground water; 
iii. 
Determine and evaluate waterworks and sewerage licenses, and 
submit evaluation results to the Water Regulatory Commission for 


 
23 
the latter’s consideration in granting of licenses; 
iv. 
Investigate violations of the water rights and the Water Code, 
and impose the appropriate sanctions in accordance with existing 
laws, rules and regulations as well as future rules and regulations 
which the Department shall promulgate; 
v. 
Adjudicate water use conflicts; and 
vi. 
Perform such other related functions and activities which are 
necessary for the effective regulation of water-related services. 
 
7. The Internal Audit Service shall regularly conduct a comprehensive 
audit of various Department activities and shall exercise the following 
functions: 
 
i. 
Advise the Secretary on all matters relating to management control 
and operations audit; 
ii. 
Conduct a performance audit of the management and operations of 
the Department, its activities, the performance of all units, and 
determine the degree of compliance of all operating units with 
established objectives, policies, standards, methods and procedures, 
government regulations and contractual obligations of the 
Department; 
iii. 
Review and appraise systems and procedures, organizational 
structure, assets management practices, accounting and other 
records, and performance standards such as budgets and standard 
costs of the Department Proper, bureaus and regional offices; 
iv. 
Analyze and evaluate management deficiencies and recommend 
realistic courses of action; and 
v. 
Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective performance of the 
abovementioned objectives. 
 
8. The Public Affairs Service shall enhance relations with all stakeholders 
including the media, for the effective dissemination of information 
relating to water-related issues, including important announcements 
on policies and activities of the department that is of interest to the 
general public. It shall ensure that women, men, elderly, and people 
with disabilities shall be consulted, organized and take active part 
in all aspects of water resources development and management 
activities. It shall also lead the planning and organizing of special 
events, and shall exercise the following functions: 
 
i. 
Public Awareness 
 
a.  Advise the Secretary on matters pertaining to public affairs; 
b. Develop and supervise the implementation of comprehensible 
communications programs on relevant policies, programs and 
plans of the Department; 
c. Produce and supervise the dissemination of communication 


 
24 
materials in line with the priorities of the Department and 
national government public information programs; 
d. Conduct public opinion and attitude surveys to identify the 
interests and concerns of the stakeholders of the Department; 
e. Establish policies on the presentation and publication of 
the content of the communication materials for dissemination 
to print and broadcast media; 
f. 
Establish and maintain linkages with the tri-media and a 
presence in social media; 
g. Coordinate the conduct of interviews and news conferences; 
h. Make public announcements on matters relating to the work 
and activities of the Department through the print and broadcast 
media, either through press releases or live interviews; 
i. 
Coordinate 
with 
various 
Department 
units, 
concerned 
government agencies, tri-media and other stakeholders on 
matters related to the above-enumerated functions; and 
j. 
Coordinate with the appropriate national government agencies 
involved in public information affairs. 
 
ii. 
Promote Participation 
 
a. Conduct public consultations and discussions; 
b. Develop and disseminate relevant and appropriate materials 
and programs for public information and education, as well as 
advocacy campaign; 
c. Conduct seminars and workshops involving the LGUs and the 
general public on current water issues and problems; and 
d. Conduct 
capability 
building 
seminars 
of 
various 
stakeholders to promote meaningful participation in the 
Department’s policy making, planning, development and 
implementation of various programs and projects. 
 
iii. 
Special Events 
a. Coordinate the organization and promotion of special events 
and water exhibits; 
b. Act as the focal office for all water related events; and 
c. Perform such functions and activities, as may be mandated by 
law, which are necessary for the effective performance of the 
abovementioned objectives. 
 
f. Bureaus. – The Department shall create bureaus which shall each be 
headed by a Bureau Director. The Bureau Director shall be responsible for 
the efficient and effective discharge of the functions of the Bureau 
concerned. The Bureau Director shall be assisted by one (1) Assistant 
Director. 
 
1. Bureau of Flood Control and Drainage shall plan and design flood control 
and drainage structures 
and 
facilities 
in 
accordance with 


 
25 
technical standards, guidelines and manuals. For this purpose, it shall 
have the following duties and responsibilities: 
 
i. 
Formulate policy, strategies and programs on flood risk 
management in the context of integrated flood management (IFM) 
which integrates water, land, coastal zone and multi-hazard 
management. In integrating land use planning and water 
management, the Department shall harmonize and synthesize plans 
to enable the sharing of information between land-use planning and 
water management authorities. In this regard, a holistic approach 
shall be adopted by making the IFM a part of a wider risk or multi-
hazard management system that includes earthquakes, landslides, 
fires, tsunami, and other calamities of the same gravity or nature; 
ii. 
Integrate climate change and disaster risk reduction and 
management in policies and plans; 
iii. 
Prepare master plans of flood management and drainage in river 
basins in coordination with the concerned water resources region 
and river basin organizations; 
iv. 
Prepare master plans for urban drainage in cities and municipalities; 
v. 
Prepare feasibility studies of recommended measures in the master 
plans; 
vi. 
Plan and design structural measures for flood control and drainage; 
vii. 
Implement and collaborate with concerned agencies on the 
formulation and adoption of non-structural measures for flood 
control and drainage; 
viii. 
Patrol and investigate rivers, and monitor stream flows; 
ix. 
Conduct post-disaster investigation and evaluation and damage 
assessment of flood infrastructures after extreme events; 
x. 
Conduct research and development on water and sediment-related 
disasters;  
xi. 
Develop design guidelines, criteria, and standards on flood 
control and drainage structures; 
xii. 
Provide technical assistance to other agencies, LGUs, and other 
stakeholders; 
xiii. 
Advise the Secretary on declaring flood control areas and 
recommend guidelines for flood plain management plans in these 
areas; and 
xiv. 
Perform such related activities which are necessary for the effective 
performance of its functions. 
 
2. Bureau of Water Quality Management shall supervise and exercise control 
over all aspects of water quality management to ensure the 
sustainability of the country’s water resources and the protection of the 
environment. It should take into account proper and integrated 
treatment of freshwater and wastewater within the whole process. For 
this purpose, the Bureau shall exercise the following functions: 
 
i. 
Establish water quality guidelines for freshwater and 
coastal or 


 
26 
marine waters as basis for classifying water bodies in the country. 
Specifically, develop water quality indices or composite metrics to 
measure the quality status and health of natural water bodies in 
relation to ecological integrity and function;  
ii. 
Establish effluent standards for point discharges to receiving bodies 
of water;  
iii. 
Establish internationally accepted procedures for sampling and 
analysis; 
iv. 
Prepare an integrated water quality management framework; 
v. 
Prepare the ten-year water quality management plans for each 
water quality management area as part of the River Basin Master 
Plans and in support of the NWRMP; 
vi. 
Classify groundwater sources and prepare a national groundwater 
vulnerability map;  
vii. 
Classify or reclassify all water bodies according to their beneficial 
usages using the established water quality guidelines established; 
viii. 
 Issue permits, clearances, and similar instruments pursuant to the 
Clean Water Act of 9 2004; 
ix. 
Collect the wastewater discharge fees for all permittees;  
x. 
Monitor the compliance of water discharge permittees with the 
effluent standards; 
xi. 
Regularly monitor the water quality of major water bodies in the 
country and analyze the data to identify possible sources of pollution; 
xii. 
Issue notices of violations and/or cease and desist orders for those 
found in violation; 
xiii. 
File the needed cases against violators with the Water Pollution 
Adjudication Board (WPAB); 
xiv. 
Serve as secretariat of the WPAB; and 
xv. 
Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
3. A Water Resources Regional Office (WRRO) shall be organized per water 
resources region and shall be responsible for implementing the 
mandates, powers and duties of the Department at the field level, 
except for policymaking which will be vested solely in the Department. 
The formulation of the master plan for the nearby river basins such 
as the Pasig-Marikina-Laguna Lake-Cavite, shall be the responsibility 
of the Department. Each WRRO shall perform the following duties and 
responsibilities: 
 
i. 
Formulate or update and coordinate the river basin master plans for 
river basins within its jurisdictions ensuring consistency with the 
National Water Resources Management Framework Plan; 
ii. 
Advocate and strongly support the creation and functioning of 
multi-stakeholder river basin organizations (RBOs) and serve as the 
secretariat of the said RBOs; 
iii. 
Undertake and evaluate the planning, design, and work supervision 


 
27 
functions of the Department for the water infrastructures within the 
region; 
iv. 
Ensure the implementation of laws, policies, programs, rules and 
regulations regarding the abovementioned infrastructure as well as 
public and private physical structures; 
v. 
Provide technical assistance related to the water-related functions 
of other agencies within the region especially the local government;  
vi. 
Coordinate with other departments, agencies, institutions and 
organizations, especially local government units within the region in 
the planning and implementation of the river basin master plans; 
vii. 
Conduct consultations with the local communities, take appropriate 
measures to ensure that the services of the Department are 
responsive, and recommend such appropriate actions as may be 
necessary; and 
viii. 
Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate Water 
Resources Regional Office unless otherwise determined by the Secretary for 
reasons of supra- regional scope, magnitude and multi-functional coverage. 
 
Each Water Resources Regional Office shall be headed by a Water Resources 
Regional Director who shall be responsible for efficiently and effectively 
carrying out the duties and responsibilities of the Office. Towards this end, the 
Water Resources Regional Director shall exercise functional and administrative 
supervision over all units within the region and is authorized to commit resources 
and assign personnel to integrated regional water resources management, water 
supply and sanitation management, and flood control and flood risk management 
initiatives. The Water Resources Regional Director shall also perform such other 
related duties and responsibilities as may be assigned or delegated by the Secretary 
or as may be required by law. 
 
The Water Resources Regional Director shall be assisted by two (2) Assistant 
Water Resources Regional Office Directors who shall exercise supervision over (1) 
the planning, project design and evaluation function and (2) technical assistance 
to the River Basin Organizations within the water resources region. 
 
SEC. 14. Water Pollution Adjudication Board. – There is hereby created a 
Water Pollution Adjudication Board under the Office of the Secretary. The Board 
shall be composed of the Secretary as Chairperson, two (2) Undersecretaries as may 
be designated by the Secretary, the Director of Water Quality Management Bureau, 
and three (3) other representatives from other stakeholders to be designated by 
the Secretary as members. 
 
The Board shall assume the powers and functions of the National 
Pollution Control Commission with respect to the adjudication of water pollution 


 
28 
cases under Republic Act No. 3931 entitled, An Act Creating The National Water And 
Air Pollution Control Commission, Presidential Decree 984 entitled Providing For The 
Revision Of Republic Act No. 3931, Commonly Known as the Pollution Control Law, And 
For Other Purposes, particularly with respect to Section 6 letters e, f, g, j, k and 
Republic Act No. 9275. The Bureau of Water Quality Management shall serve 
as the Secretariat of the Board. These powers and functions may be delegated to 
the field officers of the Department in accordance with rules and regulations to be 
promulgated by the Board. 
 
 
CHAPTER III 
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
 
SEC. 15. Interface and Institutional Arrangements with Other Agencies. –  
 
a. The Department of Health (DOH) shall continue to have primary authority 
and responsibility for setting and enforcing drinking water quality 
standards. The Department shall coordinate with the DOH in this aspect, 
and shall ensure consistency of standards and targets, as well as the 
compliance of permittees with mandated standards; 
 
b. The Department of Environment and Natural Resources (DENR) shall 
continue to have primary authority and responsibility for protecting 
the environment and managing the country’s watersheds; 
 
c. The Department of Energy (DOE) and the National Power Corporation 
(NPC) shall continue to have primary authority and responsibility for 
establishing and operating hydropower plants, but shall ensure that 
hydropower plant development plans are consistent with the National 
Water Development and Management Plan;  
 
d. The Department shall coordinate with the DA to ensure agricultural 
development that reduces long-term pollution for surface water and 
groundwater, and agricultural and industrial economic development 
that employs water efficiency, water recycling or reuse, and the 
appropriate treatment of wastewater; 
 
e. The Department shall coordinate with the National Disaster Risk 
Reduction Management Council (NDRRMC) to ensure that its plans 
and designs for flood control, flood risk management and drought risk 
management are aligned with the objectives and plans of the Department; 
 
f.  The Department shall coordinate with Climate Change Commission 
(CCC), Philippine Atmospheric, Geophysical and Astronomical Services 
Administration 
(PAGASA), 
and National Mapping and Resource 
Information Authority (NAMRIA) for scientific studies, integrated 
surveys, mapping, charting, and decision support systems; 


 
29 
 
g. The Department shall coordinate with the Department of Tourism (DOT) 
on recreational use of water resources; 
 
h. The Department shall coordinate with the Philippine Reclamation 
Authority and economic zone authorities on water resources development 
and water requirements within reclamation areas and economic zones, 
respectively; and 
 
i. The Department shall coordinate with relevant government agencies, 
including local government units (LGUs), with respect to development 
projects and shall ensure cross-cutting collaboration between and among 
all water subsectors and facilitate inter-agency subsector coordination, 
strategic 
development, 
planning, 
monitoring 
and 
provision 
of 
technical, institutional and financial capacity building support to their 
different stakeholders at the water subsector level. 
 
SEC. 16. National Water Sector Policy Board. – The National Water Sector 
Policy Board (NWSPB) shall be created and shall be headed by the Secretary of the 
Department of Water Resources with the Secretary of the National Economic and 
Development Authority as the Vice-Chairperson, and the Secretaries of the DOH, 
DILG, DOE, DA, Department of Social Welfare and Development; DPWH; 
Department of Budget and Management (DBM); Office of the President, and DENR, 
and National Commission on Indigenous Peoples as members. The Department 
shall provide personnel to serve as Secretariat to the Board. 
 
SEC. 17. Powers and Functions of the National Water Sector Policy Board – 
The NWSPB shall perform policymaking, coordination, integration, supervision, 
monitoring and evaluation functions, and shall have the following responsibilities:  
 
a. Approve the NWRMP which shall serve as a principal guide to water 
management efforts in the country and shall be reviewed every five (5)-years 
interval, or as may be deemed necessary, in order to ensure its relevance to 
the times;  
 
b. Provide overall policy direction and recommend policies on water 
resources requiring Presidential decision; 
 
c.  Advise the President on the status of water management and supply, 
recommend to the President the declaration of a state calamity in areas 
affected by water supply, and submit proposals to restore normalcy in the 
affected areas; 
 
d. Ensure a multi-stakeholder participation in the development, updating, 
and sharing of information system as policy, planning and decision-
making tools consistent with IWRM. 
 
SEC.18. Transfer of Rights and Obligations. – The Department shall, by virtue 


 
30 
of this Act, be subrogated to all the rights and assume all the obligations of the 
government agencies and units whose powers and functions have been subsumed, 
absorbed, transferred or attached to the Department in accordance with the rules 
and regulations of the Commission on Audit, and the Civil Service Commission, 
and other applicable laws. The transfer of powers and functions as herein provided 
shall take effect within six (6) months of the effectivity of this Act. As such, all 
affected agencies, offices, units shall continue to function under their present 
mandates. 
 
 
CHAPTER IV 
WATER REGULATORY COMMISSION 
SEC.19. Water Regulatory Commission. – There is hereby created and 
established as an independent, quasi-judicial regulatory body to be known as 
the Water Regulatory Commission, hereinafter referred to as the Commission, 
which shall be organized within one hundred twenty (120) days after the effectivity 
of this Act. 
 
The Commission shall be placed under the administrative supervision of the 
Department as an attached agency.  
 
The Commission shall have a Board of Commissioners, and shall be vested 
with powers and functions, as conferred and set forth hereunder. 
 
SEC. 20. The Regulatory Units. – The regulatory units of the Commission shall 
be composed of the central regulatory unit and the regional regulatory units. 
 
The economic regulatory units and functions of the MWSS, NWRB, LWUA, 
SBMA, PEZA, and TIEZA are hereby transferred to the Commission, and shall 
collectively comprise its central regulatory unit for water supply and sanitation 
services that: (a) provide services to more than one province; and (b) are owned, 
operated and/or maintained by special economic zones and Metro Manila 
concessionaires. 
 
The regional regulatory units shall be established by the Commission in 
accordance with this Act and the rules, regulations, guidelines, and standards that 
the Commission shall issue. 
 
SEC. 21. Powers and Functions of the Commission. – The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether 
private or public, providing or intending to provide levels II & III water supply, 
including suppliers to subdivisions and /or other service providers, sewerage, 
and/or septage treatment and disposal services for domestic, residential, 
institutional, industrial or commercial use. 
 
The Commission shall exercise the following powers and functions: 
 
a. Issue and promulgate rules, regulations and guidelines as may be 


 
31 
necessary to implement and enforce its powers and functions under this Act; 
 
b. Promulgate and enforce just and reasonable technical standards, 
classifications and measurements of service; 
 
c. Establish rules and regulations to monitor, avoid, and provide remedies 
for any market power abuse or anti-competitive or discriminatory act or 
behavior by or against any participant in the water supply and sanitation 
sector. Upon finding that a market participant has engaged in, or has fallen 
victim to such act or behavior, the Commission shall act to stop or redress 
the same. Such remedies may, without limitation, include the imposition of 
price controls, issuance of injunctions, requirement of divestment or 
disgorgement of excess profits, invalidation of contracts and imposition of 
fines and penalties pursuant to this Act.  
 
d. Adopt and require that books, records, and accounts be kept and 
maintained in accordance with the prescribed uniform accounting system;  
 
e. Fix and determine proper and adequate rates of depreciation of properties 
and equipment used in water supply and sanitation services;  
 
f. Impose and collect annual levies determined as a percentage of gross 
revenue accruing in relation to the licensed activities, and reasonable fees 
and surcharges as may be necessary for achieving the purposes, powers and 
functions of the Commission;  
 
g. Require the submission reports of finances and operations, verified under 
oaths by the owner or president and secretary of the board of the licensee;  
 
h. Determine and require the monitoring and submission of such data, 
statistics and other information from the regulatory units and any or all 
licensees as may be necessary for the effective and efficient exercise of its 
duties, functions, powers and responsibilities. 
 
i. Investigate, motu propio or upon a written complaint, any matter concerning 
the operation of the service and issues on price manipulation and anti-
competitive behavior; 
 
j. Impose penalties and fines against any licensee or against its owners, 
directors, officers, agents or representatives for any violation of this Act or of 
the license, order, rule regulation or requirement issued by the Commission; 
 
k. Require any licensee to pay the actual expenses incurred by the 
Commission in any investigation if it shall be found that a licensee violated 
any provision of this Act or of the license, order, rule regulation or 
requirement issued by the Commission;  
 
l. Advise, apprise and coordinate with other relevant agencies of the 


 
32 
national or local government on any matter relating to water supply and 
sanitation services; 
 
m. Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
 
n. Appoint an interim or temporary management committee upon appeal 
and after due hearing, to ensure continuity of service in case a licensee 
fails to meet conditions of the license and the concerned Regulatory 
Unit fails or refuses to appoint an interim management committee as 
provided in the following section. 
 
o. Appoint, hire and maintain adequate staff and personnel, advisers, or 
consultants, with suitable qualifications and experience, as necessary; 
 
p. Exercise original and exclusive jurisdiction over all cases contesting rates, 
fees, fines and penalties imposed by the regulatory units in the exercise of 
their powers, functions and responsibilities, as provided under this Act, 
and over all cases involving disputes between and among participants or 
stakeholders in the water supply and sanitation services; and 
 
q. Such other incidental powers and functions as may be necessary to attain 
the objectives of this Act. 
 
SEC. 22. Powers and Functions of the Regulatory Units. – The regulatory 
units of the Commission shall have the following powers and functions: 
 
a. Issue licenses authorizing the operation of water supply and sanitation 
services in any specified area or areas within the Philippines. 
 
b. Impose fines, charges and other penalties upon any provider and/or 
its officers and stockholders who shall fail or refuse to register or obtain 
a license prior to operation or commencement of business, as provided 
hereunder. 
 
c. Review, determine, fix, and approve, consistent with the rules, guidelines, 
procedures and methodologies which the Commission shall provide, 
proposed water and sewerage and septage management tariffs, rates 
and charges that licensees may impose upon their consumers; 
 
d. Appraise and value property and equipment used by licensees in 
providing water supply and sanitation services. 
 
e. Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities; 
 
f. Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu propio price manipulation and 


 
33 
anti-competitive behavior; 
 
g. Investigate accidents directly or indirectly arising from or connected with 
the maintenance or operation of the service, and make such order or 
recommendation as the public interest may warrant; 
 
h. Require the review and/or approval of contracts or agreements that may 
impact on the tariff and rates of service provision entered into by service 
providers upon petition or motu propio where in its determination public 
interest so dictates; 
 
i. Require the submission of reports, plans, and other documents that define 
the performance targets of the licensees or utilities, and regular 
accomplishment reports; 
 
j. Impose and collect annual levies determined as a percentage of gross 
revenue accruing in relation to the licensed activities, and reasonable 
fees and surcharges as may be necessary for achieving the purposes, 
powers, and functions of the regulator; 
 
k. Conduct benchmarking and monitor the performance of licensees or 
utilities under their jurisdiction, and publish reports detailing the 
results thereof, as may be necessary or required by the Commission; 
 
l. Amend, modify, suspend, or revoke any license issued by them, after 
due notice and hearing, on any of the following grounds: 
 
1. when the facts and circumstances on the strength of which the license 
was issued have been materially misrepresented or have materially 
changed; 
2. where the licensee has failed to meet or comply with terms, conditions, 
and performance targets, including but not limited to service 
expansion, that may have been set in the license; 
3. where the licensee is found to be manifestly inefficient in the operation 
of or provision of water supply and sanitation services in its area; or 
4. when the licensee thereof has violated or willfully refused to comply 
with any order, rule or regulation of the Commission or any provision 
of this Act; 
 
m. Appoint an interim management committee to ensure continuity of 
service in case a licensee fails to meet the conditions of the license; and 
n. Submit performance plans and reports as required by the Commission. 
 
SEC. 23. Composition of the Water Regulatory Commission. – 
 
a. The Commission shall be a collegial body composed of five (5) full-time 
members consisting of a Chairperson and four (4) members, who shall all 
be appointed by the President of the Philippines. All members of the 


 
34 
Commission must be citizens and residents of the Philippines, at least thirty 
five (35) years of age, and of good moral character, of recognized integrity 
and competence in the field of law, business, commerce, finance, 
accounting 
or 
public administration, water or utility economics, 
management, physical or engineering services, hydrology and other 
related services, with at least three (3) years of actual and distinguished 
experience in their respective fields of expertise: Provided, That out of the 
four (4) members of the Commission, at least one (1) shall be a member of 
the Philippine Bar with at least ten (10) years of experience in the active 
practice of law, and at least one (1) shall be a certified public accountant 
with at least ten (10) years of experience in active practice. 
 
b. The term of office of each member of the Commission shall be seven (7) 
years: Provided, That among the members first appointed, the Chairperson 
shall serve for a period of seven (7) years, two (2) members shall serve for 
five (5) years and the other two (2) members shall serve for three (3) years: 
Provided further, That any member whose term has expired as specified 
herein shall serve as such until a successor shall have been appointed and 
qualified: Provided furthermore, That any appointment to fill a vacancy in the 
Commission arising from death, removal, retirement or resignation shall 
be made only for the unexpired term: Provided, finally, That in no case 
shall any member serve for more than seven (7) years in the Commission.  
 
c. The Commission shall meet as often as may be necessary on such day 
or days as the Chairperson may fix. The presence of at least three (3) 
members of the Commission shall constitute a quorum, which shall be 
necessary for the transaction of any business. The affirmative vote of 
majority of the members of the Commission where a quorum is present 
shall be necessary for the adoption of any order, resolution, decisions, or 
other act of the Commission in the exercise of its quasi-judicial functions: 
Provided, That in promulgating rules, regulations, guidelines and in 
exercising its quasi-legislative functions, an affirmative vote of three (3) 
members shall be required. 
 
d. The Chairperson of the Commission shall exercise general executive control 
and supervision over the Commission and its members, staff and 
personnel, agents and representatives. Within three (3) months from the 
creation of the Commission and the appointment of all Members  of  the  
Commission,  the  Chairperson  shall  determine  and  establish  the 
organizational structure and plantilla positions necessary to carry out 
the powers and functions of the Commission, including those of the 
central and provincial regulatory units subject to the review and approval 
of the DBM. 
 
e. The plantilla positions of the Commission shall be filled by regular 
appointments in accordance with Civil Service laws, rules, and regulations. 
Members of the Commission shall enjoy security of tenure and shall not be 
suspended or removed from office except for just cause as specified by law. 


 
35 
 
f. The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or 
common law, shall be prohibited from holding any interest whatsoever, 
either as investor, stockholder, officer or director, in any company or entity 
engaged in provision of water supply and distribution, septage management 
and sewerage services and must, therefore, divest through sale or legal 
disposition of any and all interests in the water sector upon assumption to 
office. 
 
SEC. 24. Secretariat of the Commission. – The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
including the following: 
 
a. Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions; 
 
b. Coordinate with Regulatory Units to ensure proper implementation of the 
rules, regulations and guidelines promulgated by the Commission; 
 
c. Monitor and assess activities of the Regulatory Units vis-à-vis their 
respective annual performance plans and targets; 
 
d. Maintain a database on the water supply and sanitation subsector; and 
 
e. Coordinate with other relevant agencies of the national or local 
government on any matter relating to water supply and sanitation. 
 
SEC. 25. Executive Director. – The Commission shall appoint an Executive 
Director who shall head the Commission Secretariat, keep and maintain the official 
records of the Commission, render a report on the proceedings of the Commission, 
and administer oaths in all matters falling within the jurisdiction of the 
Commission. 
 
The Executive Director shall be responsible for the effective implementation 
of the policies, plans, programs, rules, regulations and directives of the 
Commission; coordinate and supervise the activities of the different operating units 
under the Commission; and perform such functions as may be assigned by the 
Chairperson and/or other members of the Commission. 
 
SEC. 26. Compensation and Other Emoluments. – The compensation of the 
members of the Commission and its staff shall conform to provisions of Republic Act 
No. 6758 as amended, otherwise known as the Compensation and Position 
Classification Act of 1989. 
 
 
CHAPTER V 
REGISTRATION AND LICENSING 


 
36 
SEC. 27. Registration and Licensing of All Water Supply and Sanitation 
Services. – All water supply and sanitation service providers, including bulk water 
suppliers and those providing services to subdivisions and other service providers, 
shall register with the Commission and, subject to such rules, guidelines, procedures 
and other issuances of the Commission, obtain a license to operate from the 
appropriate regulatory units. 
 
The Commission shall ensure that the grant and revocation of licenses are 
carried out fairly, transparently, and without discrimination. Issuances of the 
Commission shall specify, among others, the qualifications, requirements, and 
procedure for the grant and revocation of licenses including the standards and 
performance targets that shall continuously be complied with to keep the licenses 
valid. 
 
Unless otherwise provided in this Act or by the Commission, no public 
water supply and sanitation service provider shall commence or conduct the 
business of providing water supply and sanitation services without first obtaining 
a license.  
 
Concession agreements and other contracts for water supply provision and 
water sanitation and treatment services currently existing shall remain valid and 
enforceable unless otherwise terminated, after due notice and hearing for reasons 
provided in the existing terms and conditions under the concession or service 
agreement or contract, or when invalidated by the Commission, after due notice and 
hearing, where national security, national emergency or public interest so dictates. 
 
SEC 28.  Conditions of License. – The Commission or the concerned 
regulatory unit, may impose such conditions on the licensee as it may deem 
necessary, such as: 
 
a. Tariffs, rates and charges that may be imposed from its customers or 
consumers. 
 
b. Term fixing the duration of the privilege. 
 
c. Grounds for modification, suspension or cancellation of the License. 
 
d. Minimum technical performance and service level standards. 
 
e. Expansion targets and service level improvements over time. 
 
f. Restrictions or conditions for transferability of the business or controlling 
interest in the business. 
 
g. Reportorial requirements and obligations of the grantee. 
 
h. Submission to annual performance audit by the Commission or its 
duly authorized representative(s). 


 
37 
 
The Commission shall specify the requirements and procedure for existing 
holders of A Certificate of Public Convenience (CPC), Certificates of Public 
Convenience and Necessity (CPCN) issued by NWRB, or Certificate of 
Conformance (CoC) issued by LWUA, to convert their existing certificates into 
licenses to operate in accordance with Sec. 27 herein. 
 
All existing providers of water supply and sanitation services without a 
legal and valid Certificate of Public Convenience, Certificate of Public Convenience 
and Necessity, or Certificate of Conformance shall register with the Commission and 
apply for a license within six (6) months from the effectivity of this Act. 
 
SEC. 29. Rights and Duties of Licensees. – 
 
a. Any person granted a license under this Act shall have the obligation to 
ensure that licensed activities are conducted to further public interest and, 
in particular: 
 
1. Foster the maintenance and development of efficient, coordinated, and 
viable operation of their licensed activities; 
2. Ensure that their water supply and sanitation services are provided 
in a diligent, conscientious and workman like manner, in accordance 
with applicable laws rules and regulations issued by the Commission 
and the generally accepted standards and practices of the water supply 
and sanitation industry; and 
3. Comply with drinking water quality requirements and standards that 
may be established by the Commission. 
 
b. Any person granted a license under this Act shall, to the extent allowed by 
law and specified in the license, has the right to acquire or lease land, lay or 
repair water or sanitation main lines and other relevant facilities in public 
ways to fulfill the terms and conditions under the license. 
 
c. Subject to any condition or limitation laid down in the license, a licensee may 
discontinue water supply and sanitation services to a customer if such 
customer defaults in the payment of fees due to the licensee for the water 
supplied or sanitation services provided, or for acts of pilferage pursuant to 
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the 
Water Crisis Act of 1995. 
 
d. Any license issued under this Act shall contain provisions designed to 
ensure that licensees: 
 
1. Publish the Tariff and other charges approved by and the terms and 
conditions imposed by the Commission for the provision of water 
supply and sanitation services. 
2. Prepare, within three (3) months from the issuance of a license, in 
consultation with its customers, a Customer Service Code specifying 


 
38 
the manner and procedure for: (a) metering, billing, and collection 
of the licensee’s approved tariff and other charges, (b) disconnection 
or suspension of service in case of non-payment of tariffs and/or 
other charges, or acts of pilferage, and (c) recommendation and recovery 
of arrears in tariffs and other charges; 
3. Maintain financial accounts in accordance with the manner and 
procedure specified in the license and as may be required by the 
Commission; and 
4. Maintain and upon request by anyone during regular office hours, 
promptly make available for scrutiny and inspection such data, statistics 
and other information, as may be required by the Commission. 
 
SEC. 30. Setting Tariffs, Rates, and Other Charges. – Regulatory units shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure 
economic viability and a fair return on investments. 
 
Tariffs, rates and charges shall be based on and consistent with a rate-setting 
methodology that the Commission shall, after due consultation, define and publish, 
taking into account the following, among others: 
 
a. Reasonable and prudent capital and recurrent costs of providing the 
service including a reasonable rate of return on capital; 
 
b. Efficiency of the service; 
 
c. Incentives for enhancement of efficiency; 
 
d. Willingness to pay of the customers/consumers; 
 
e. Equity considerations; and  
 
f. Administrative simplicity. 
 
Tariffs, rates, and charges set by the regulatory units shall be presumed valid 
and reasonable unless a protest or contest is filed with the Commission. 
 
SEC.31. Direct Access. - Fifty-one (51) percent of the registered water 
consumers in a municipality, city or province may petition for direct access to water 
from any water service provider subject to concurrence by the service provider and 
approval by the Commission. The Commission shall promulgate rules and 
procedures for this mode of service. 
 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of 
Systems. – The Commission shall promote innovative schemes such as the 
consolidation or integration of water supply and sanitation services, or providers 
in the same service area, where it shall result in improved efficiency, service 
expansion and lower costs. 
 


 
39 
To this end, the Commission shall establish and issue such rules and 
guidelines as may be necessary to (a) create incentives to encourage efficiency and 
service expansion; (b) establish the standards and targets that service providers are 
required to meet; and (c) define the fines and penalties that shall be imposed for 
failure to meet such standards and targets. 
 
 
CHAPTER VI 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
 
SEC. 33. Proceedings Before the Commission. – For the purpose of any 
investigation, inquiry or proceeding, the Commission shall: 
 
a. Issue subpoena duces tecum and subpoena ad testificandum; 
 
b. Appoint hearing officers to hear and receive evidence on behalf of the 
Commission; 
 
c. Cite any person or party for contempt for refusal to appear, testify, or comply 
with an order of the Commission on any matter that is the subject of 
investigation, inquiry or proceeding before the Commission. 
 
SEC. 34. Orders and Decisions of the Commission. – Any order, resolution, or 
decisions of the Commission shall be promulgated promptly, expeditiously, 
reasonably, and in writing, and shall state clearly and distinctly the facts and law on 
which it is based. 
 
The Commission shall publish and make available for public inspection, all 
decisions and final orders in the adjudication of contested cases or applications. 
 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. – 
 
a. The orders, rulings, and decisions of the Commission are final and 
executory unless appealed to the Court of Appeals within fifteen (15) days 
from receipt of notice of such order, ruling or decision: Provided, That 
orders, rulings, and decisions of the Commission approving tariffs, shall be 
immediately executory and may be suspended only upon appeal and filing 
of a bond, in an amount to be fixed by the Commission, to answer for 
damages occasioned by the suspension or stay of execution of such orders, 
rulings, and decisions. 
 
b. No injunction may be issued by any court or administrative agency 
to restrain any proceeding before, or the implementation or execution of 
any order, ruling, or decision of the Commission, except on the basis of a 
question of law brought before the Supreme Court on certiorari. 
 
c. Any act or decision of the Commission shall not be invalidated merely 
because of a defect or irregularity in, or in connection with, the 


 
40 
appointment or vacancy in the Office of the Chairperson or any other 
member of the Commission. 
 
 
CHAPTER VII 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
 
SEC. 36. Interface with Other Sector Regulators. – 
 
a. The DENR shall continue to exercise primary jurisdiction over 
programs aimed at protecting the environment and the quality of water 
sources from waste and pollution, and shall promulgate rules, regulations, 
and standards in this regard. The Department of Health (DOH) shall 
continue to exercise primary jurisdiction over the determination and 
enforcement of standards for quality drinking water and sanitation. 
 
b. The Commission shall coordinate with the: 
 
1. DOH to ensure that the standards and targets for quality drinking 
water and sanitation are consistently complied with; 
2. LGUs for development projects relating to water supply and sanitation; 
and 
3. Department of Public Works and Highways for flood control and 
harnessing and impounding of water. 
 
SEC. 37. Transfer of Rights and Obligations. – The Commission shall, by 
virtue of this Act, be subrogated to all the rights, and assume all the obligations, of 
the Water Utilities Division of the NWRB, the regulatory offices of MWSS and 
LWUA, the regulatory units of all special economic zones, and all other government 
agencies and units whose powers and functions have been transferred to the 
Commission. 
 
The transfer of powers and functions to the Department of the concerned 
agencies as herein provided for, shall be deemed completed within six (6) months 
after the effectivity of this Act. The transfer of powers and functions shall include 
all applicable funds, personnel, records, property and equipment, as may be 
necessary. The same shall apply to agencies which have been attached to the 
Department by virtue of this Act. 
 
All agencies transferred, subsumed and attached to the Department, shall 
continue to function under their present mandates until the six-month transition 
period mandated under this Act shall have lapsed. The heads of the affected agencies 
shall continue to serve until replaced. 
 
All rights and obligations of the affected agencies are hereby transferred to and 
assumed by the Commission, and shall be acted upon in accordance with the rules 
and regulations of the Commission on Audit and other pertinent laws, rules, and 
regulations. 


 
41 
 
SEC. 38. Absorption or Separation from Service of Employees of the 
Subrogated Agencies. – The current employees of the Water Utilities Division of the 
NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of all special 
economic zones, and all other government agencies and units whose powers and 
functions have been transferred to the Commission shall enjoy security of tenure, 
and shall be absorbed by the Department, in accordance with their staffing pattern 
and the selection process as prescribed under Republic Act No. 6656 or the 
Government Reorganization Law. 
 
Employees opting to be separated from the service as a consequence of the 
consolidation, and reconstitution under the provisions of this Act shall, within one 
(1) month from their separation or phase out from the service, receive separation 
benefits in accordance with existing laws, and those who are qualified to retire shall 
be allowed to retire and be entitled to all benefits under existing retirement laws. 
 
SEC. 39. Water Trust Fund. – There is hereby created a Water Trust Fund in 
the Bureau of Treasury. All non-tax revenues, including raw water pricing, permit 
fees, registration fees, supervision and regulation enforcement fees, filing fees, 
testing fees, and other service income from the use of water resources shall be 
remitted to the Water Trust Fund. The trust fund shall be accounted separately from 
the government’s general revenues and shall be automatically appropriated to the 
Department. Proceeds from the trust fund shall be utilized for water development, 
water sanitation and waste water treatment and management, and water 
sustainability programs and projects authorized under this Act: Provided, That a 
maximum of ten percent (10%) of the total income generated from raw water 
extraction shall be given as share of the concerned local government unit or 
indigenous peoples (IP) community who own the specific areas or land where the 
raw water was sourced. 
 
 
CHAPTER VIII 
FINAL PROVISIONS 
 
Sec. 40. Applicability of Ease of Doing Business Law. – The prescribed 
processing time provided under Section 9.b of Republic Act No. 11032, otherwise 
known as the Ease of Doing Business and Efficient Government Service Delivery Act of 
2018, shall be applicable to all agencies and LGUs covered under this Act particularly 
on accessing government services. 
 
Sec. 41. Transitory Provisions. – Performance audit of all water-related 
agencies and institutions, including LWUA and water districts, MWSS, MWSS-RO 
and its concessionaires, LGU-run utilities, Tourism Infrastructure and Enterprise 
Zone Authority, Philippine Economic Zone Authority, Bases Conversion and 
Development Authority, Subic Bay Metropolitan Authority, DILG, and NIA, shall 
be conducted by the Department. 
 
SEC. 42. Appropriations – The amount necessary to cover the initial 


 
42 
implementation of this Act shall be charged against the currents year’s 
appropriations of the agencies and offices transferred and subsumed by the 
Department and the Commission in the General Appropriations Act. Thereafter, 
such sums as may be necessary for the continued implementation of the Act shall 
be included in the annual GAA. 
 
SEC. 43. Implementing Rules and Regulations. – Within one hundred eighty 
(180) days from the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, 
in consultation with concerned government agencies, the Presidential Legislative 
Liaison 
Office 
shall 
promulgate 
rules 
and regulations for the effective 
implementation of this Act. 
 
SEC. 44. Separability Clause. – If any reason, any portion or provision of this 
Act shall be held unconstitutional or invalid, the remaining provisions not affected 
thereby shall continue to be in full force and effect. 
 
SEC. 45. Repealing Clause. –  
 
a. The following provisions are hereby repealed: 
 
1. Section 3 (h) and Section 12 on the provision with respect to fixing of 
water rates and sanitation service fees, Section 3 (n) on the provision 
with respect to regulation of waterworks and deep wells, and Section 3 
(p) on the provision with respect to regulation of waterworks and 
sanitation systems in privately owned subdivisions of Republic Act 
6234 entitled, An Act Creating The Metropolitan Waterworks And 
Sewerage System And Dissolving The National Waterworks And Sewerage 
Authority, And For Other Purposes, as amended. 
2. Title III on Local Water Utilities Administration Law of Presidential 
Decree No. 198 otherwise known as the Provincial Water Utilities Act of 
1973, as amended by Letter of Instruction No. 700 - Providing Measures 
To Control And Regulate Increase In Water Rates, Letter of Instruction No. 
744 - Relative To Reliable Water Supply At Reasonable Rates In The Countryside 
on the, Executive Order No. 124, 30 January 1987 - Reorganization Act of 
the Ministry of Public Works and Highways, Executive Order No. 123, 30 
January 1987 - Reorganization Act of Ministry of Social Services and 
Development. 
3. Republic Act No. 3601 as amended by Presidential Decree No. 552 and 
Presidential Decree No. 1702 pertaining to the creation of the National 
Irrigation Administration; 
4. Section 1 of Executive Order No. 124-A S. 1987 Amending Executive 
Order No. 124, dated 30 January 1987, Reorganizing the Department of 
Public Works and Highways, Redefining Its Powers and Functions, and For 
Other Purposes on renaming and reorganizing the National Water 
Resources Council into the National Water Resources Board. 
 
b. The following provisions are hereby amended accordingly: 
 


 
43 
1. Section 3 paragraph 3 Commonwealth Act No. 146, as amended, 
otherwise known as the Public Service Act pertaining to all cases 
involving the fixing of rates;  
2. Section 154, Article V, Chapter I, Title One, Book II of Republic Act No. 
7160, as amended, otherwise known as the “Local Government Code of 
1991”, and its implementing rules and regulations on the power of the 
local government units to fix the rates of water utilities owned, 
operated and maintained by them within their jurisdiction is hereby 
repealed or modified accordingly.  
3. Section 13 (b) on the regulation of enterprises within the Economic 
Zone under Republic Act No. 7916 as amended, otherwise known as 
“The Special Economic Zone Act of 1995”; 
4. Section 69 of Republic Act No. 9593 otherwise known as “The Tourism 
Act of 2009” and its implementing rules and regulations which mandate 
the Tourism Infrastructure and Enterprise Zone Authority to grant 
franchises, supervise the operation of public utilities, and register, 
monitor and regulate enterprises within Tourism Enterprise Zones, are 
hereby repealed or modified accordingly; 
5. Sections 7 and 8 on the adjudication of water pollution cases under 
Republic Act No. 3931 entitled, An Act Creating The National Water And 
Air Pollution Control Commission, particularly with respect to Section 6 
letters e, f, g, j, k Presidential Decree 984 entitled, Providing for the 
Revision of Republic Act No. 3931, Commonly Known as the Pollution Control 
Law, and For Other Purposes; 
6. Sections 4(1) and 7 of Republic Act No. 9275, otherwise known as the 
“Philippine Clean Water Act of 2004”;  
7. Articles 3(d) and 79 of Presidential Decree No. 1067, otherwise known 
as The Water Code of the Philippines; 
8. Sections 9, 10, 11, 12 and 13, Chapter II of Presidential Decree No. 856, 
otherwise known as the “Code on Sanitation of the Philippines”; and 
9. Section 3.2 (b) of Executive Order No. 149 Series of 1993 transferring 
the Laguna Lake Development Authority from the Office of the 
President to the Department of Environment and Natural Resources. 
 
All other laws, presidential decrees, executive orders, presidential 
proclamations, rules and regulations, or parts thereof which are inconsistent with 
the provisions of this Act are hereby repealed or amended accordingly. 
 
SEC. 46. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved,