1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by REPRESENTATIVE SALVADOR A. PLEYTO 
EXPLANATORY NOTE 
Water is a vital yet finite resource essential for life, economic development, and 
environmental sustainability.  While our country currently faces significant challenges in 
achieving water security, including the impacts of climate change, population growth, 
pollution, and fragmented governance, these obstacles also present us with an 
opportunity to innovate and collaborate. By addressing these issues proactively, we can 
develop strategies that ensure a sustainable water future for all. 
This proposed measure presents a valuable prospect to establish a comprehensive 
national framework for water resource management. By creating the Department of 
Water Resources (DMW) and the Water Regulatory Commission (WRC), we can promote 
the equitable, efficient, and sustainable management of our country's water resources, 
benefiting both the environment and our communities. 
This bill outlines a constructive roadmap to secure water as a shared national 
heritage. By centralizing authority within the DWR and WRC, we will harmonize policies, 
encourage sustainable practices, and uphold the right to water for all Filipinos. The timely 
passage of this legislation will not only help us prevent future water crises but also 
enhance our resilience to climate change and promote water justice for current and 
future generations. 
The Department will serve as the main entity within the Executive Branch of the 
government responsible for policy-making, planning, coordination, implementation, 
monitoring, and administration. Its focus will be on the comprehensive, sustainable, 
climate-resilient, and integrated development and management of the water resources 
in the Philippines. This includes the optimal allocation and use of these resources for 
domestic and municipal water supply, sanitation, irrigation, hydropower, industry, flood 
management, and recreational purposes. 
August 11, 2025
9:57 am
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By consolidating disconnected policies and agencies under a clear and unified 
national strategy, the Philippines could experience transformative benefits. This approach 
could lead to a more efficient and equitable distribution of water, enhance resilience to 
climate change-related disasters such as floods and droughts, and promote a sustainable 
future for the country's vital water resources. 
In view of the foregoing, the immediate consideration of this measure is hereby 
earnestly sought. 
SALVADOR A. PLEYTO, SR. 


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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by REPRESENTATIVE SALVADOR A. PLEYTO 
AN ACT 
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATE, 
POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER I 
GENERAL PROVISIONS 
Section 1. Short Title.- This Act shall be known as the “National Water 
Resources Management Act” 
Sec. 2. Declaration of Policy.- 
a. The State recognizes that water is fundamental to individual life, health, and
dignity, and that every person has a right to access safe and clean water for
personal and domestic use;
b. The State affirms that the right of all Filipinos to safe and clean drinking water
and sanitation is essential to the full enjoyment of life and all human rights and
hence, the attainment of a nationwide water supply and sanitation services at
reasonable rates must be pursued in an orderly, rational, efficient, and dynamic
manner;
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c. The State emphasizes that water is a public good subject to diverse use in 
economic, agricultural, and industrial activities, and is thus a scarce resource 
which must be carefully regulated to prevent resource depletion and to ensure 
its availability for future generations; 
d. The State also maintains that water is indispensable to the existence and 
sustainability of natural ecosystems, and as such its use must neither endanger 
the balance and health of the environment nor compromise the rhythm and 
harmony of nature; 
e. The State further maintains that water resources are interconnected with 
climate, soil condition, land use and land cover, forest cover, and other natural 
resources. As such, the management of water will require inter-sectoral and 
inter-agency collaboration as well as harmonization of laws, policies, 
institutions, and stakeholders; and 
f. Finally, while the State maintains that all water resources remain under its full 
ownership, control, and supervision, it emphasizes that it may enter into 
arrangements with the private sector, as well as with civil society and 
community-based organizations, on the basis of beneficial use, to ensure the 
efficient and affordable delivery of water supply, sanitation, and septage 
services to end-users. 
In accordance with these precepts, it is hereby declared the policy of the State 
to provide for the rational, evidence-based, and integrated management of all water 
resources in the country to ensure universal access to safe, adequate, and affordable 
water supply, sanitation, and septage services, through a policy and regulatory regime 
that encourages innovation and responsible private sector participation, while ensuring 
ecological preservation and environmental sustainability. 
Sec. 3. Definition of Terms.- The following terms are hereby defined as follows: 
(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 it for own consumption, such as industrial companies, 
or for sale or distribution by other water service providers; 
(b) Environmental services refer to qualitative functions of natural non-produced 
assets of land, water, and air, including related ecosystems, and their biota, 


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and which may be categorized into three basic types: (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 is not only hydrological 
uncertainties but also social, economic, and political uncertainties on account 
of human behavior and cultural dimensions of FRM; 
(e) Gender Equality refers to the principle of 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) 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; 


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(g) License refers to the water supply, sanitation, or septage management services 
operating license that the Water Regulatory Commission is authorized to grant 
and issue to service providers; 
(h) Licensee refers to the service provider to whom a license is granted or issued 
by the Water Regulatory Commission; 
(i) National Water Resources Management Plan (NWRMP) refers to a policy 
document that incorporates a framework to guide the development and 
management of all water resources in the Philippines, the general strategies 
and work to be pursued to ensure the sustainability of the resource and work 
towards the water security; and provides top-level direction on the utilization 
of existing water resources in line with national development plans, policies, 
and programs in accordance with the IWRM framework. The NWRMP shall also 
include a water infrastructure development program for all waters of the 
country as well as provide general guidance on how this shall be supported 
within an integrated financing framework that can draw on public, private and 
international development funding sources; 
(j) Regulatory Units refer to the regulatory offices of the Water Regulatory 
Commission established under this Act; 
(k) 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; 
(l) River Basin Organization (RBO) refers to multi-stakeholder organizations which 
plan, coordinate, and monitor activities within a river basin cluster; 
(m) Sanitation refers to the provision of facilities and services for the safe 
management of septage and sewage, from the collection to containment, and 
storage and treatment onsite or conveyance, treatment, and eventual safe end 
use or disposal, and includes the safe management of solid waste and animal 
waste; 
(n) Septage refers to the liquid and solid material pumped from a septic tank, 
cesspool, or other primary treatment source; 
(o) Septage Management refers to the provision of proper collection, treatment, 
and disposal of septage; 


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(p) Service Area refers to the area covered by the water supply, sanitation, 
sewerage, and septage management services; 
(q) Service Provider refers to any entity, natural or juridical, whether private or 
public, providing or intending to provide water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic, 
residential, institutional, industrial, or commercial use; 
(r) 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 water 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; 
(s) Sewerage refers to any system or network of sanitary pipelines, ditches, 
channels or conduits including pumping stations, lift stations and force mains, 
service connections including other infrastructure, devices or appliances 
appurtenant thereto, which includes the collection, transport, pumping and 
treatment of sewage to a point of disposal; 
(t) Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose sewage; 
(u) Social inclusion refers to the process of improving the terms for marginalized 
and disadvantaged individuals, indigenous peoples, and similar groups to take 
part in society; 
(v) Tariffs refer to such amounts which may be charged by licensees for their water 
supply, sewerage, sanitation, or septage services based on principles, 
standards, and guidelines established by the Department of Water Resources 
and determined and approved by the Water Regulatory Commission; 
(w) Water Demand Management 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; 


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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 of water 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. 
(x) Water District – refers to government-owned and controlled corporations 
organized under Presidential Decree No. 198, otherwise known as the 
"Provincial Water Utilities Act of 1973", as amended, created primarily to 
acquire, install, operate, maintain and improve water supply and distribution 
systems for domestic, industrial, and municipal uses of residents and to provide, 
maintain, and operate wastewater collection, treatment and disposal facilities 
within the boundaries of the district; 
(y) 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; 
(z) 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; 
(aa) Water resource allocation refers to the process of sharing the limited water 
resources between competing users. This consists of determining water 
availability and determining how the water should be shared among competing 
users. For the purpose of this Act, resource allocation shall also mean water 
resource allocation; 
(bb)Water Resources Regions refer to the contiguous clusters of river basins created 
under this Act which are grouped together according to the hydrological 
boundaries, physiographic features, and homogeneity in climate, whether or 
not they are located within the political boundaries of different local government 
units, for administrative purposes under the Department of Water Resources; 


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(cc) Water Resources Regional Offices (WRROs) refer to the field offices of the 
Department of Water Resources, as created under this Act, which are to be 
established in accordance with the identified water resources regions in the 
country; 
(dd) Water service cooperative refer to cooperatives organized primarily to own, 
operate, and manage water systems for the provision and distribution of 
potable water for the members and their households 
(ee) Water Service Providers (WSPs) refer to the water districts, any Local 
Government Unit (LGU)-run water utility, Barangay Waterworks and Sanitation 
Association, Rural Waterworks and Sanitation Association, water service 
cooperatives, and any public or private sector entities that provide water supply 
services to any given area; 
(ff) Water supply service refers to any activity comprising all levels of the water 
supply chain including, but not limited to the development of water sources, 
and the conveyance, treatment, or distribution of water. 
 
CHAPTER II 
DEPARTMENT OF WATER RESOURCES 
Sec. 4. Establishment of the Department of Water Resources. – There is hereby 
established the Department of Water Resources, hereafter referred to as the 
Department. 
Sec. 5. Mandate and Objectives. – The Department shall be the primary policy, 
planning, coordinating, implementing, monitoring, and administrative entity of the 
Executive Branch of the government responsible for the comprehensive, sustainable, 
climate-resilient, and integrated development and management of the water resources 
of the Philippines, and their optimal allocation and use for domestic and municipal 
water supply, sanitation, irrigation, hydropower, industry, flood management, and 
recreation. 
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 sewerage and sanitation 
services for all Filipinos. 


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Sec. 6. Powers and Functions. – The Department shall exercise the following 
powers and functions: 
I. 
Policy Making 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 agencies and stakeholders to meet the goals and objectives 
for water resource sustainability and protection, water allocation and 
water demand management, water supply, sanitation, sewerage, 
water quality, irrigation, hydropower, flood control, stormwater 
utilization, and urban drainage. Such policies shall, among other 
guidelines, integrate the relevant issues of water, sewerage, 
sanitation, food security, energy, environment, flood control, and 
climate change; 
(c) 
Formulate long-term policies to balance the sustainability and optimal 
multiple use of water resources, define the hydrologic boundaries of 
basins of the existing water supply sources, and develop or update 
existing River Basin Master or Comprehensive Plans which includes 
all aspects of water management and development such as water 
supply, sewerage, and sanitation, irrigation, flood control and storm 
water or urban drainage, drought risk management, water resource 
development systems and other public water works projects, 
including phasing of implementation; 
(d) 
Harmonize all relevant national river basin policies and serve as the 
national policy coordination office for LGUs and relevant stakeholders 
in the development and sustainability of river and catchment basins; 
(e) 
Identify, based on the river basin master plans, priority projects for 
water infrastructure development per river basin, including water 
supply, sanitation, irrigation, hydropower, flood control and storm 


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water or urban drainage, drought risk management, water resource 
development systems and other public works projects; 
(f) 
Evaluate and appraise all regional and inter-regional infrastructure 
water development plans and programs as to their feasibility and 
consistency with approved strategies and medium and long-term 
plans; 
(g) 
Formulate and develop policies and strategies to promote universal 
access to safe, adequate, affordable, and sustainable water supply, 
and improved sanitation services for all Filipinos; 
(h) 
Develop, in consultation with relevant agencies and stakeholders, the 
National Water Resources Management Plan (NWRMP) and ensure 
its integration into existing Comprehensive Land Use Plans and 
Provincial Development and Physical Framework Plans, within the 
context of a National Physical Framework Plan, to ensure the 
harmonization of planning of water, land, subsurface, and air 
resources, submit the NWRMP to the Economy and Development 
Council (ED Council) for approval and eventual adoption, and 
regularly update the NWRMP, every five years or as deemed 
necessary by the Department, in order to ensure its relevance to the 
times; 
To ensure the efficient and coordinated development of national 
water plans and programs, the ED Council shall adopt a streamlined 
process for the review and endorsement of the NWRMP and other 
water-related plans requiring approval. 
(i) 
Prepare, formulate, implement, and update a five (5) year national 
and regional septage management plans, which shall contain 
measures for the construction of wastewater treatment facilities and 
provision, 
installation, 
operation, 
maintenance 
and, 
where 
practicable, the integration of sewerage, septage management, other 
sanitation facilities, and storm water utilization and management, in 
accordance with Republic Act No. 9275, otherwise known as the 
"Philippine Clean Water Act of 2004". Compliance with the mandate 


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to implement septage management services and systems by any 
WSP pursuant to the Philippine Clean Water Act of 2004 shall be 
reckoned within five (5) years from the date of promulgation or 
publication of the septage management plan formulated by the 
Department. 
(j) 
Review and provide oversight over all water-related development 
plans and programs of any agency or LGU within the context of the 
NWRMP and overall national plans and programs; 
(k) 
Assist and provide the Department of Economy, Planning, and 
Development (DEPDev) 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 ED Council the adoption of general policies and guidelines for 
water resources development; 
(l) 
Strengthen and coordinate with relevant agencies on policy making 
and planning for flood management, integrated with stormwater or 
urban drainage and appropriate retention or retarding basins in order 
to harvest and reuse water, and to plan against, prevent, and 
minimize the detrimental and catastrophic effects of flooding; 
(m) 
Develop and implement, in coordination with other relevant agencies 
and stakeholders, effective codes, standards, benchmarks, and 
reasonable guidelines to ensure the safety of all public, and private 
water structures in the country, and assure efficiency and proper 
quality in the construction of water supply, sanitation, irrigation, 
hydropower, flood control, drainage, and other related water 
infrastructure; 
(n) 
Ensure that gender equality, social inclusion, environmental 
protection, climate resiliency and disaster risk reduction, and 
indigenous knowledge systems and practices are integrated into any 
water resources management planning, and policy making for the 
water sector; 


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(o) 
Act as the lead agency in ensuring the effective implementation of all 
laws and implementing rules and regulations on water resources, 
including but not limited to Presidential Decree No. 1067, otherwise 
known as “The Water Code of the Philippines”; 
(p) 
Review all water laws and implementing rules and regulations and 
propose amendments thereof to Congress, and advise any agency 
on the implications of government actions, policies, and programs to 
water supply, sewerage, and sanitation; 
(q) 
Authorize its representatives or any deputized agent to enter any 
property of public dominion or, with prior written notice to the owner 
or occupant, any private land, building or enclave, whether inhabited 
or not, or authorize a representative thereof, for the purpose of 
conducting hydrological surveys and investigations, including 
assessing and evaluating the conditions of water facilities installed; 
and 
(r) 
Issue and promulgate rules and regulations as may be necessary to 
implement and enforce its powers and functions under this Act. 
II. 
Data Collection and Evidence Gathering 
(a) 
Establish, operate, and maintain a centralized water resources data 
center necessary for the scientific survey and appraisal of surface 
and ground water potentials of the country and determine the annual 
renewable water available per water resources region; 
(b) 
Effect 
inter-sectoral, 
inter-agency 
and 
inter-departmental 
coordination on all aspects of data gathering and data sharing for 
water resources development planning and compel submissions of 
statistics and data on water management with the aim of 
operationalizing the IWRM framework; 
(c) 
Undertake river basin surveys, inventory and appraisal of water and 
related resources and develop comprehensive basin-wide plans of 
storage, retardation, and control to maximize conservation and 
multipurpose use of water in the basin in coordination with the river 
basin initiatives of relevant government entities; 


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(d) 
Collect, regularly update, monitor, and analyze water resources data 
including climatology, hydrologic, and other water-related data; 
(e) 
Establish, in coordination with agencies that generate water-related 
data, the guidelines, standards, methodologies, and protocols for 
data collection that will be officially recognized by the Department, 
and institute mechanisms for coordination with other agencies as 
regards their submission of water-related data to the Department; 
(f) 
Conduct continuing hydrological and hydrometeorological surveys 
and studies of the country’s renewable water supply, and establish, 
operate, and maintain observation station networks 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) 
Conduct and promote special studies and research on water 
economics and other aspects of water resources development and 
management as may be needed to support the policy and plan 
proposals of the Department, such as, but not limited to, impacts of 
climate change, weather modification, flood monitoring and 
modeling, environmental quality, and desalination; 
(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) 
Develop and continuously update a computerized decision support 
system that incorporates data management system 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; 


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(j) 
Promulgate rules on methods and standards for basic data collection 
and project identification, formulation and planning, and appropriate 
sanctions to be imposed for non-compliance; and 
(k) 
Promote Philippine participation in information sharing and education 
on best practices to achieve universal access to safe water and 
improved sanitation and the integration of water, energy, food 
security and environment. 
III. 
Water Resource Management and Allocation 
(a) 
Formulate, issue, and enforce rules and regulations on the following: 
(i) 
Abstraction, diversion, and development of the country’s 
water resources, taking into consideration their equitable 
distribution among competing demands and determine the 
standards of beneficial and priority uses of water in times of 
crises and national emergencies; 
(i) 
Equitable and optimal allocation of the country’s water 
resources for domestic and municipal water supply, irrigation, 
sanitation, irrigation, hydropower, fisheries, livestock raising, 
industrial, recreational, and other purposes; 
(ii) 
Through the Water Resources Allocation Board, the 
determination and granting of water rights, including 
adjudication in cases of conflicting water rights, amending for 
this purpose, Act No. 2152, otherwise known as “The 
Irrigation Act”, Presidential Decree No. 1067, otherwise known 
as “The Water Code”, and other laws relating to the 
appropriation and utilization of surface and groundwater; 
(iv) 
Such other coherent water protocols as may be necessary, 
including the operating rules of all existing and future water 
infrastructure, legal and technical mechanisms for intra- 
sectoral transfers; 
(v) 
Guidelines for the determination of tariffs, and costs and fees 
of all water rights , permits and licenses through a science- 
based method which will accurately reflect the current or 


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future projected state of the water resource to be allocated: 
Provided, that the actual methodology for setting tariffs shall 
be the exclusive power of the Water Regulatory Commission; 
(vi) 
Treatment and utilization, in coordination with relevant 
agencies, of flood control, rain-water run-off, stormwater, and 
urban drainage. 
(b) 
Exercise 
original 
jurisdiction 
over 
all 
disputes 
relating 
to 
appropriation, utilization, exploitation, development, control, and 
conservation of all water resources, the adjudication of which shall 
be undertaken by the Water Resources Allocation Board; 
(c) 
Impose fees or charges, as may be deemed necessary for water 
resources conservation, in accordance with applicable rules and 
regulations on the imposition and increase of fees or charges, such 
as but not limited to: 
(i) 
Raw water price, which shall take into account, among others, 
the scarcity of water; and 
(i) 
Appropriate structures for payment of environmental services. 
(d) 
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. 
IV. 
Administration and Management 
(a) 
Develop guidelines, including rules governing the partnership and 
coordination between and among the Department, field offices of 
national government agencies, LGUs, and other stakeholders, in 
water resource management, facilitate the establishment of multi- 
stakeholder river basin organizations (RBOs) per river basin, and 
strengthen and support RBOs and existing sub-river basin 
organizations and monitor their activities; 
(b) 
Develop materials for capacity building and training on RBO 
development and conduct training and workshops for prospective 
RBOs; 


17 
 
(c) 
Provide technical assistance to water users including farmers, 
communities, LGUs, and WSPs whether directly or in coordination 
with other agencies on all aspects of IWRM; 
(d) 
Conduct a regular review of all institutions and agencies with water- 
related functions to ensure the efficient and rational use, allocation, 
and distribution of all water resources in the country and pursuant 
thereto; 
(e) 
Deputize any official or agency of the government to assist in the 
performance of any of the powers and functions of the Department, 
provided: that the Department shall not deputize any local 
government in its power to collect fees or charges; 
(f) 
Appoint, hire, and maintain adequate staff and personnel, advisers 
or consultants with suitable qualifications and experience, as 
necessary, in accordance with relevant laws, rules, and regulations. 
V. 
Coordination 
(a) 
Coordinate and rationalize the efforts of relevant government 
agencies and instrumentalities to ensure a whole-of-government 
approach to attaining water security; 
(b) 
Coordinate and integrate water resources development activities of 
the country within the context of national plans and policies for social 
and economic development; 
(c) 
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 with accompanying 
computerized decision tools for major water facilities; 
(d) 
Coordinate with the concerned and relevant agencies engaged in 
flood control, flood risk management, and drought risk management; 
and; 


18 
 
(e) 
Coordinate proactively with LGUs to ensure the integration of water 
resources development plans into their comprehensive land use 
plans, Comprehensive Development Plans, or Provincial Physical 
Framework and Development Plan. 
VI. 
Other Functions 
(a) 
Create, 
when 
necessary, 
water 
resource 
subsidiaries, 
instrumentalities, and entities to engage in water transmission, water 
distribution, waste water treatment and management, and sanitation 
in accordance with existing relevant laws, without prejudice to private 
entities capable of and willing to engage in the aforementioned 
activities through concession agreements, joint venture agreements, 
bulk water agreements, or service agreements or contracts. For this 
purpose, the Department shall ensure compliance with existing 
frameworks, rules, regulations and guidelines for private sector 
participation in water transmission, water distribution, waste water 
treatment and management, storm water management, and 
sanitation: provided, that the creation of water resource subsidiaries, 
instrumentalities or entities under this paragraph shall require the 
approval of the Governance Commission for Government-Owned-or-
Controlled Corporations as provided under Republic Act No. 10149 
and the National Water Sector Policy Council; 
(b) 
Promulgate guidelines on the minimum qualifications of members of 
the board of directors, general manager, and officers of local water 
districts; 
(c) 
Enter into contracts, joint venture agreements, public-private 
partnerships, and memorandum of agreement 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; 
(d) 
Review existing guidelines appropriate for private sector participation 
in the water sector and submit recommendations to the Public- 


19 
 
Private Partnership (PPP) Center and other concerned agencies to 
promote and enable more PPPs in the sector; and 
(e) 
Exercise such other powers and functions necessary or incidental to 
the effective administration and management of the country’s water 
resources. 
Sec. 7. Offices, Functions, and Personnel to be Completely Absorbed by the 
Department. – The following offices are hereby abolished, and their respective powers 
and functions, and the corresponding personnel, funds and appropriations, records, 
equipment, and property shall be absorbed by the Department: 
(a) 
National Water Resources Board, whose mandate, powers, and functions 
are provided in Presidential Decree No. 424 creating the National Water 
Resources Council, now NWRB, as amended: Provided, That its water 
utility regulation units and functions, vested under Commonwealth Act No. 
146, otherwise known as the “Public Service Act”, as amended, which shall 
be absorbed by the Water Regulatory Commission created under this Act, 
Provided, further, That its resource allocation or regulation units vested 
under Presidential Decree No. 1067 shall be absorbed by the Department 
under the Water Resources Allocation Board and the Resource Allocation 
Office, also created under this Act; 
(b) 
LWUA with its services, departments and divisions, whose mandate, 
powers and functions are provided for in Title III of Presidential Decree 
No. 198, as amended, otherwise known as the “Local Water Utilities 
Administration Law”: Provided, That its economic regulatory functions 
over local water districts shall be fully absorbed by the Water Regulatory 
Commission created under this Act: Provided, further, That its function to 
provide technical assistance to local water service providers shall be 
absorbed by the Department under the Local Water Service Providers 
Bureau, also created under this Act; and 
(c) 
Water Resource Management Office of the DENR whose mandate, 
powers, and functions are provided in Executive Order No. 22, series of 
2023. 


20 
 
Sec. 8. Powers and Functions to be Transferred to the Department. – The 
powers and functions of the following agencies, bureaus, and units and the 
corresponding personnel, funds and appropriations, records, equipment, and property 
are also hereby transferred to the Department: 
(a) The powers and functions of the Mines and Geosciences Bureau (MGB) of 
the DENR to conduct hydrological surveys and groundwater mapping; 
(b) The powers and functions of the Bureau of Design and Bureau of Research 
and Standards of the DPWH with regard to conduct of hydrological surveys 
monitoring of stream flow and other water data collection; 
(c) 
The powers and functions of the DPWH with regard to the planning, 
programming, administration, monitoring, and management of the 
National Sewerage and Septage Management Program and its powers and 
functions with regard to flood management planning 
(d) The powers and functions of the Laguna Lake Development Authority 
(LLDA) with regard to the issuance of any permit for the abstraction of 
water from the Laguna Lake and related bodies of water; 
(e) The mandate, powers and functions of the River Basin Control Office 
(RBCO) of the Department of Environment and Natural Resources (DENR) 
with respect to river basin infrastructure development, flood control, and 
integrated water resources management, as found in Executive Order No. 
510, series of 2006, and Executive Order No. 816, series of 2009, as 
amended, shall be transferred to the Department: Provided, that the other 
functions relating to environmental protection shall be retained with the 
DENR and it shall continue to have primary authority and responsibility for 
managing, protecting, preserving, conserving, and enhancing watersheds 
and other natural water systems: Provided, further, That the targeting of 
priority watershed areas shall be coordinated with the Department and; 
(f) 
The following functions of the Manila Bay Task Force per Executive Order 
No. 93, series of 2019: 
(i) 
Updating and leading in the overall implementation of the Pasig 
River Rehabilitation Master Plan; and 


21 
 
(i) 
Ensuring that the easements provided for in the Civil Code and other 
relevant laws are enforced, especially in all the esteros and 
waterways as well as abating the dumping of untreated wastewater 
and sewage into water systems, including all acts and omissions in 
violation of Presidential Decree No. 984, as amended, and other 
related laws. 
(g) The project development, management and monitoring functions of the 
Department of the Interior and Local Government with respect to water 
supply and sanitation. 
Sec. 9. Attached Agencies. – The Department shall exercise administrative 
supervision over the following agencies for purposes of policy and program 
coordination, monitoring, and evaluation: 
(a) 
The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandate, powers, and functions are defined under RA 6234, as amended 
entitled, “An Act Creating the Metropolitan Waterworks and Sewerage 
System and Dissolving the National Waterworks and Sewerage Authority, 
and For Other Purposes,” shall be transferred from the DENR 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, operate, and dispose its retained assets: Provided, further, That 
its regulatory arm, the MWSS – Regulatory Office, shall be fully absorbed 
by the Water Regulatory Commission created under this Act; 
(b) 
The National Irrigation Administration (NIA), whose mandates, powers 
and functions are defined under Republic Act No. 3601, otherwise known 
as "An Act Granting the National Irrigation Administration", as amended, 
is hereby transferred to the Department provided: that the DA and NIA 
shall be responsible for creating the irrigation master plan to be 
implemented by the NIA in collaboration with the Department. The DA 
masterplan shall identify the agricultural areas that shall receive majority 
allocation for water resources in the identified areas; and 


22 
 
(c) 
Any 
other 
agency 
performing 
water 
resources 
management, 
conservation, and protection functions may be transferred to the 
Department as the President deems necessary. 
The Secretary of Water Resources shall be the ex-officio Chairperson of the 
Governing Boards of the aforementioned government-owned and controlled 
corporations to be attached under the Department. In case existing laws, rules and 
regulations provide for a specific process in appointing the agency’s Chairperson, the 
Secretary of Water Resources shall serve as Co-Chairperson. 
Sec. 10. Organization. – The Department shall be composed of the Office of 
the Secretary, and the various bureaus and services, and regional offices. The Office 
of the Secretary shall house the Office of the Department Secretary, the Office of the 
Undersecretaries, the Office of the Assistant Secretaries, and their immediate support 
staff. 
Sec. 11. 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 be appointed by the President, 
subject to confirmation by the Commission on Appointments. The Secretary shall: 
(a) Provide executive direction, supervision, and control over the entire 
operations of the Department and exercise supervision over its attached 
agency for program and policy coordination; 
(b) Submit to the ED Council the Department’s recommendations on policies 
on water resources requiring presidential decision and advise the President 
on the promulgation of executive or administrative orders, and other 
issuances and on the formulation of necessary regulatory or legislative 
proposals on matters pertaining to the management of water resources, 
water supply, sanitation, and septage services; 
(c) 
Establish the policies and standards for the effective, efficient, and 
economical operation of the Department; 
(d) Advise the President on the status of water management and supply, 
recommend to the President the declaration of a state calamity in areas 


23 
 
affected by water supply, and submit proposals to restore normalcy in the 
affected areas; 
(e) Promulgate rules and regulations necessary to carry out the objectives, 
policies and functions of the Department; 
(f) 
Exercise control, supervision, and disciplinary powers, in accordance with 
law, over all officers and employees of the Department, including their 
investigation and the designation of a committee or officer to conduct such 
investigation; 
(g) Create regional offices and such other service units, bureaus, and divisions 
as may be necessary; 
(h) Designate and appoint officers and employees of the Department, 
excluding the Undersecretaries, Assistant Secretaries, Directors, Assistant 
Directors, and Regional and Assistant Regional Directors, in accordance 
with the civil service laws, rules and regulations; 
(i) 
Call upon and deputize any official, agent, employee, agency, or 
instrumentality of the national and local government for any assistance 
that it may deem necessary to carry out the purposes of this Chapter, 
subject to existing laws; 
(j) 
Delegate authority for the performance of any power or function, as 
defined herein to officials and employees under his direction as deemed 
appropriate, in accordance with existing laws; 
(k) Act as the ex-officio Chairperson of the governing board of the agencies 
attached to the Department; and 
(l) 
Perform such other duties and responsibilities as may be provided by law. 
The Secretary of Water Resources shall also serve as a voting member of the 
ED Council, the governing boards of the Climate Change Commission, the National 
Disaster Risk Reduction and Management Council (NDRRMC), and the National Land 
Use Committee. 
Sec. 12. Office of the Secretary. – The Office of the Secretary shall be composed 
of the Secretary and his/her immediate staff. 


24 
 
Sec. 13. The Offices of the Undersecretaries. – The Secretary shall be assisted 
by three (3) Undersecretaries and three (3) Assistant Secretaries, who shall all be 
appointed by the President upon the recommendation of the Secretary. 
The Secretary is hereby authorized to delineate and assign the respective 
functional areas of responsibility of the Undersecretaries and Assistant Secretaries: 
Provided, that such responsibility shall be with respect to the mandate and objectives 
of the Department: Provided further, that no Undersecretary shall be assigned 
primarily to administrative responsibilities. 
Sec. 14. Qualifications of the Department Secretary, Undersecretaries, and 
Assistant Secretaries. – 
(a) No person shall be appointed Secretary, unless he or she is of good moral 
character, of proven integrity and competence, and has extensive 
experience or expertise in the water, sanitation, or related sectors; 
(b) At least one (1) of the Undersecretaries and at least one (1) of the 
Assistant Secretaries shall be career officers; 
(c) 
No employee, officer, external auditor, accountant or legal counsel of any 
private company or enterprises primarily engaged in the water or 
sanitation industry or of any entity exercising control over, under common 
control with, or controlled by such private company or enterprise shall be 
eligible for appointment as Secretary, Undersecretary, or Assistant 
Secretary within two (2) years from his/her retirement, resignation, or 
separation therefrom; 
(d) The Secretary, Undersecretary and Assistant Secretary 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 of office. 
Sec. 15. The Water Resources Allocation Board. – There is hereby created a 
Water Resources Allocation Board, hereafter referred to as the Board, under the Office 


25 
 
of the Secretary. The water resources allocation and regulation functions of the 
National Water Resources Board are hereby transferred to the Board which shall 
supervise the effective appropriation and regulation of the water resources in the 
country in accordance with Presidential Decree No. 1067. The Board shall exercise the 
quasi-judicial powers granted to it under this Act. 
Sec. 16. Composition. – The Board shall be composed of a Department 
Undersecretary as Chairperson and four (4) representatives from stakeholders as 
members, who shall all be designated by the Secretary and whose terms of office and 
qualifications shall be determined in the Implementing Rules and Regulations of this 
Act. 
There is hereby created a Resource Allocation Office, hereinafter referred to as 
the Office, which shall serve as Secretariat to the Board and shall provide technical 
support to the Board towards the effective regulation of the country’s water resources. 
Sec. 17. Functions of the Board. – The Board shall perform the following 
functions: 
(a) 
Promulgate rules and regulations for the exploitation and optimum 
utilization of water resources, in accordance with Presidential Decree No. 
1067 and other existing laws, including the imposition on water 
appropriators of such fees or charges by the Department; 
(b) 
Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Resource Allocation Office; 
(c) 
Review and decide on requests for permits to extract or utilize the 
country’s water resources and grant the corresponding water rights, upon 
recommendation of the Office in accordance with Presidential Decree No. 
1067: Provided, That the water rights are exercised within three (3) years 
from granting of such rights or such other period as may be determined 
under the Implementing Rules and Regulations of this Act or Presidential 
Decree No. 1067: Provided, further, That applicants for water permits shall 
submit proof of land ownership of, or right to use the property where the 
water source is located: Provided, finally, That, if the applicant is currently 
using the water source being applied for domestic or municipal purposes 
upon the effectivity of this Act, such applicant may submit such proof of 


26 
 
prior use of possession of said property in lieu of ownership or right to 
use; 
(d) 
Exercise original jurisdiction over decisions in cases involving the 
following: 
(i) 
All disputes relating to the appropriation, utilization, exploitation, 
development, control, and conservation of waters; and 
(ii) 
Violations and disputes involving water permits, administrative 
allocation of water resources, and transfer of water rights and 
charges related thereto; 
(e) 
Issue subpoena duces tecum and subpoena ad testificandum; 
(f) 
Cite any person or party in contempt for refusal to appear, testify or 
comply with the lawful orders of the Board in relation to any matter subject 
to its investigation; 
(g) 
Administer oaths, hear, receive evidence, and decide on cases falling 
within its jurisdiction; 
(h) 
Impose the appropriate sanctions, including revocation of water permits, 
over violations committed by appropriators after due notice and hearing 
in accordance with Presidential Decree No. 1067 and other existing laws, 
rules and regulations as well as future rules and regulations which the 
Board shall promulgate; 
(i) 
Review, update, and revise all fees, charges, and penalties imposed on all 
water appropriators as stated under Chapter VII and VIII of Presidential 
Decree No. 1067, upon recommendation by the Secretariat, and based on 
scientific and evidence-based studies, subject to the approval of the 
Secretary; 
(j) 
Promulgate its own rules and procedures, subject to the approval of the 
Secretary; and 
(k) 
Exercise such other powers as may be necessary to carry out its duties 
and responsibilities under this law. 
Sec. 18. Resource Allocation Office. – The Office shall perform the following 
functions: 


27 
 
(a) Advise the Board on all matters relating to resource allocation and 
regulation; 
(b) Formulate rules and regulation for the exploitation and optimum utilization 
of surface water, groundwater, and seawater extraction and use, for the 
approval of the Board, and for implementation by the Office, including the 
processes for the application of water permits, in accordance with 
Presidential Decree No. 1067 and other existing laws; 
(c) 
Process applications for rights to utilize water resources for the 
appropriate, optimal and sustainable use of surface and ground water, for 
the approval of the Board or its Executive Director, as may be delegated 
by the Board; 
(d) Upon approval by the Board, issue water permits granted to water 
appropriators: Provided, that no other government agency, body, or 
instrumentality shall have jurisdiction over matters relating to the grant of 
water rights and water permits except as otherwise delegated by the 
Board with the approval of the Secretary as provided under this Section; 
(e) Monitor performance and conduct audits on water rights grantees 
including, among others, review of compliance by grantees with the terms 
of the permits granted; 
(f) 
Investigate, motu proprio or upon complaint, violations of water rights and 
Presidential Decree No. 1067; 
(g) In the case of violations and conflicts between and among users, file the 
necessary cases for the decision of the Board; 
(h) Enforce the decisions promulgated by the Board, and as may be delegated 
by the Board; 
(i) 
Coordinate with other relevant units of the Department regarding the 
generation, updating, managing, and sharing of water data; 
(j) 
Respond to complaints relating to water rights; and 
(k) Perform such other related functions and activities which are necessary 
for the effective regulation of water-related services. 
The Office shall be headed by an Executive Director and shall be assisted by 
one (1) Deputy Executive Director. 


28 
 
The functions of the Board and the Resource Allocation office under Sections 
17 and 18 of this Act may be delegated by the Board, upon approval of the 
Secretary, to regional water resource allocation boards to be created by the 
Secretary, provided further, that the approving authority in such regional boards 
shall be a collegial body composed of not less than five (5) members, to be chaired 
by the Regional Director of the Water Resource Regional Office, provided finally, 
that the adjudication of conflicts over water rights shall remain within the 
jurisdiction of the Board. 
The term of office, qualifications, and manner of appointment of the other 
members of such regional boards shall be determined in the Implementing Rules 
and Regulations of this Act. Such regional boards shall be assisted by the Water 
Resource Regional Offices. 
Sec. 19. Orders and Decisions. – Every order or decision rendered by the Board 
shall be in writing and shall state clearly and distinctly the facts and the law on which 
it is based. The Board shall decide each case or application within thirty (30) days 
following its formal submission for resolution. All decisions and final orders in the 
adjudication of contested cases or applications shall be published and made available 
for public inspection. 
Sec. 20. Appeals Procedure and Prohibition Against Injunction. – 
(a) 
The orders, rulings, and decisions of any regional board constituted by the 
Secretary shall become final and executory after fifteen (15) days from 
receipt of such order, ruling, or decision, unless, prior to the lapse of this 
period, an appeal was made with the Board; 
(b) 
The orders, rulings, and decisions of the Board shall become final and 
executory after fifteen (15) days from receipt of such order, ruling, or 
decision, unless, prior to the lapse of this period, an appeal was made with 
the Court of Appeals; 
(c) 
All decisions where the penalty imposed is a fine shall be immediately 
executory, except upon the filing of a bond equivalent to the fine imposed 
or as may be fixed by the Board; 
(d) 
Except for the Supreme Court, no temporary restraining order, preliminary 
injunction, or preliminary mandatory injunction may be issued by any 


29 
 
court to restrain any proceeding before, or the implementation or 
execution of any order, ruling, or decision of the Board. 
Sec. 21. Bureaus and Services. – The Department shall have the following 
Bureaus and Services under it such as, but not limited to: 
(a) 
The Local Water Service Providers Bureau shall provide technical 
assistance and personnel training for the creation, application for grants 
and the socialized credit program, and operation of local water service 
providers, and shall effect system integration, joint investment and 
operation, merger, consolidation, annexation and de-annexation of local 
water districts, in accordance with Section 50 of Presidential Decree No. 
198; and 
(b) 
The Bureau of Flood Control and Drainage shall plan flood control and 
drainage structures and facilities in accordance with technical standards, 
guidelines and manuals. 
The Bureaus and Services of the Department shall be headed by a Director who shall 
be responsible for efficiently and effectively carrying out the functions of the Bureau 
concerned. Each Director shall be assisted by one (1) Assistant Director. 
Sec. 22. The Water Resources Regional Offices. – Water Resources Regional 
Offices, which shall be organized per water resources region and, shall be responsible 
for implementing the mandates, powers, and duties of the Department at the field 
level, except for policymaking which will be vested solely in the Department. 
The Department shall establish the water resources regions which shall be 
grouped together according to the hydrological boundaries, physiographic features, 
and homogeneity in climate, whether or not they are within the political boundaries of 
different LGUs. 
The regional offices shall have, within their respective water resources region, 
the following functions: 
(a) 
Formulate or update and coordinate the river basin master plans for river 
basins within its jurisdictions ensuring consistency with the NWRMP; 
(b) 
Advocate and strongly support the creation and functioning of multi- 
stakeholder RBOs and serve as the secretariat of the said RBO, and 
restructure, consolidate or merge any RBOs; 


30 
 
(c) 
Undertake and evaluate the planning functions of the Department for the 
water infrastructure within the region, and recommend the necessary 
water infrastructure therein; 
(d) 
Ensure the implementation of laws, policies, programs, rules, and 
regulations regarding the abovementioned infrastructure as well as public 
and private physical structures; 
(e) 
Provide technical assistance for the water-related functions of other 
agencies within the region especially the local government; 
(f) 
Coordinate with other departments, LGUs, agencies, institutions and 
organizations within the region in the planning and implementation of the 
river basin master plans; 
(g) 
Conduct continuing consultations with the local communities, take 
appropriate measures to make the services of the Department responsive 
to stakeholders and recommend such appropriate actions as may be 
necessary; and 
(h) 
Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives. 
Each regional office shall be headed by a Regional Director who shall be 
responsible for efficiently and effectively carrying out the duties and responsibilities of 
the office. The Regional Director shall be assisted by one (1) Assistant Regional 
Director. The Regional Directors and Assistant Regional Directors shall be appointed 
by the President. 
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate Regional 
Director, unless otherwise determined by the Secretary. 
Sec. 23. Structure and Staffing Pattern. – Subject to the approval of the 
Department of Budget and Management (DBM), the Secretary shall determine the 
organizational structure and create new divisions or units as may be necessary, and 
appoint officers and employees of the Department in accordance with the civil service 
laws, rules and regulations. The remuneration structure of the position in the staffing 
pattern shall strictly conform to the Salary Standardization Law. 


31 
 
CHAPTER III 
SOCIALIZED CREDIT AND SUPPORT FOR LOCAL WATER SERVICE 
PROVIDERS 
Sec. 24. Socialized Credit Program. – There shall be a Socialized Credit Program 
established by the National Government and made available through Government 
Financial Institutions (GFIs), for capital expenditures necessary for the maintenance, 
addition, expansion, or improvement of the services of the water service providers, 
such as but not limited to, capital expenditure for water distribution, water 
conservation, water treatment, water sanitation, water testing, and other related 
activities and ancillary services: Provided, That the loans shall be available to water 
service providers duly registered with the Commission: Provided, further, That no loan 
shall be granted for the purpose of funding operational costs or expenses. 
Sec. 25. Support Program for Local Water Service Providers. – The Department, 
the Department of Finance, and the Department of Budget and Management shall 
issue guidelines in the award and disbursement of any grants from any source, and 
subsidy, such as but not limited to non-tax incentives, from the National Government: 
Provided, That the Department shall be the implementing agency for this purpose. 
 
CHAPTER IV 
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
Sec. 26. Interface And Institutional Arrangements With Other Agencies. – 
(a) 
The DENR shall continue to have primary authority and responsibility for 
managing, protecting, preserving, conserving, and enhancing watersheds 
and other natural water systems: Provided, That the Department shall 
coordinate with the DENR regarding the establishment of protocols for 
management of all water-related data being collected by the DENR; 
(b) 
The DOH shall continue to have primary authority and responsibility for 
setting and enforcing drinking water quality standards: Provided, That 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; 


32 
 
(c) 
The DOE and the National Power Corporation (NPC) shall ensure that any 
hydropower plant development plans are consistent with the NWRMP; 
(d) 
The Department shall coordinate with the DA to ensure agricultural 
development that reduces sources of long-term pollution for surface water 
and groundwater, and agricultural and industrial economic development 
that employs water efficiency, water recycling or reuse and the 
appropriate treatment of wastewater: Provided, That the Department shall 
coordinate with the DA and its Bureau of Soils and Water Management 
(BSWM) regarding the establishment of protocols for management of all 
water-related data being collected by DA, as well as the outputs of 
research and studies by BSWM which may serve as input to policy 
formulation by the Department; 
(e) 
The Department shall coordinate with the 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 Philippine Atmospheric, Geophysical 
and Astronomical Services Administration, Climate Change Commission, 
and National Mapping and Resource Information Authority for scientific 
studies, integrated surveys, mapping, charting and decision support 
systems; 
(g) 
The Department shall coordinate with the Department of Tourism (DOT) 
on recreational use of water resources; 
(h) 
The Department shall coordinate with the Tourism Infrastructure and 
Enterprise Zone Authority, Philippine Reclamation Authority, and economic 
zone authorities on water resources development and water requirements 
within tourist zones, reclamation areas and economic zones, respectively; 
(i) 
The Department shall coordinate with relevant government agencies, 
including LGUs with respect to development projects and to 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 


33 
 
capacity building support to their different stakeholders at the water 
subsector level; 
(j) 
The Department shall coordinate with the Bangsamoro Autonomous 
Region in Muslim Mindanao (BARMM), specifically its Economic and 
Development Council, Disaster Risk Reduction and Management Council, 
and Ministry of Environment, Natural Resources and Energy, regarding the 
preparation of master plans of river basins that overlap with the inland 
waters within the BARMM’s jurisdiction, and ensure the alignment of these 
plans with the NWRMP and the Bangsamoro Development Plan and other 
related regional plans of BARMM; 
(k) 
The Department shall coordinate with the DPWH as regards the 
construction of water projects including flood control and other related 
projects within the purview of the DPWH: Provided, That the flood 
management plans are aligned with the NWRMP, and that flood waters be 
considered and harnessed as potential water source: Provider, further, 
That the Department shall coordinate with the DPWH regarding the 
establishment of protocols for management of all water-related data being 
collected by the DPWH; 
(l) 
The Department shall coordinate with the Department of Human 
Settlements and Urban Development in planning, monitoring and 
enforcing integrated land use and water resources management in the 
Comprehensive Land Use Development Plans and Zoning Ordinances of 
the LGUs to ensure, among others, the protection of water sources and 
that water availability is factored in proposed land use development plans 
and projects; 
(m) 
The Department shall coordinate with the LLDA with respect to matters 
concerning Laguna Lake and related bodies of water. The Secretary of the 
Department shall be a member of the governing board of the LLDA and 
shall act as it’s co-chair; 
(n) 
The Department shall coordinate with the Bureau of Fisheries and Aquatic 
Resources with respect to matters concerning fisheries and aquaculture; 
and 


34 
 
(o) 
All other departments and agencies of the government implementing 
water-related functions and projects shall ensure that the programs and 
projects are consistent with the national water management plan of the 
Department. 
 
CHAPTER V 
THE WATER REGULATORY COMMISSION 
Sec. 27. Establishment. – There is hereby created and established an 
independent, quasi-judicial regulatory body to be known as the Water Regulatory 
Commission, hereinafter referred to as the Commission. 
Sec. 28. The Regulatory Units. – The Regulatory Units of the Commission shall 
be composed of the Regional Regulatory Units and the Central Regulatory Unit. The 
economic regulatory units and functions of the MWSS, NWRB, and LWUA are hereby 
transferred to its Central Regulatory Unit. 
Regulatory Units shall be established by the Commission in accordance with the 
rules, regulations, guidelines, and standards that the Commission shall issue, and as 
provided in this Act. The Commission may reorganize the Central and Regional 
Regulatory Units as may be necessary to implement the provisions of this Act. 
Sec. 29. 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 water supply, including suppliers 
to subdivisions, bulk water suppliers, and other providers for sewerage, and septage 
treatment and disposal services for domestic, residential, institutional, industrial, or 
commercial use, provided, that economic zone authorities with jurisdiction over water 
and sanitation service providers within their respective economic zones shall continue 
to exercise such jurisdiction, provided further, that such economic zone authorities 
shall coordinate with the Commission to harmonize standard setting and rate-setting 
methodology, where applicable. 
The Commission shall exercise the following powers and functions: 
(a) 
Issue and promulgate rules, regulations and guidelines as may be 
necessary to implement and enforce its powers and functions under this 
Act; 


35 
 
(b) 
Issue rules and regulations on terms and conditions prescribing minimum 
and mandatory terms for concession agreements, joint venture 
agreements, bulk water supply agreements, management agreements, 
service contracts or other contractual arrangements that may be entered 
into by government entities including local water utilities and local 
government units and private sector entities or other water service 
providers for the provision of water or sanitation services, such as the (i) 
the term, scope and total cost of the activity, which may be subdivided 
into phases; (ii) committed contributions and corresponding performance 
security requirements in accordance with any agreed phased 
implementation of the activity; and (iii) cost recovery schemes and 
percentage of the parties’ share in the profits and losses, among others; 
(c) 
Issue licenses authorizing the operation of water supply, sanitation, and 
sewerage services in any specified area or areas within the Philippines; 
(d) 
Set, regulate, review, and monitor the tariffs, rates, charges, and fees for 
water services, sanitation services, and septage services, which may be 
delegated to the Regulatory Units; 
(e) 
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 targets, 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, sanitation, sewerage or 
septage 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; 


36 
 
(f) 
Promulgate and enforce just and reasonable technical standards, 
classifications and measurements of service; 
(g) 
Promulgate and enforce technical, financial, and other performance 
standards set by the Commission for licensees or utilities; 
(h) 
Conduct benchmarking and monitor the performance of licensees or 
utilities under their jurisdiction, and publish reports detailing the results 
thereof; 
(i) 
Constitute, appoint, exercise supervision and control, remove, reorganize, 
or abolish the Central and Regional Regulators; 
(j) 
Coordinate with the Philippine Competition Commission (PCC) and 
provide technical support in the PCC’s exercise of authority and 
jurisdiction to establish rules and enforce regulations to monitor, 
investigate, provide remedies for, and provide inputs in the PCC’s 
hearings and deliberations on cases involving any market power abuse or 
anti-competitive or discriminatory act or behavior by or against any 
participant in the water supply and sanitation sector, including in respect 
of the determination of whether any merger, acquisition, joint venture or 
other transaction, agreement or arrangement by, between or among 
water service providers or any participant in the water supply and 
sanitation sector is anti-competitive or will substantially prevent, restrict 
or lessen competition in the relevant market. Without prejudice to the 
actions that the PCC, pursuant to RA 10667, may undertake on its own, 
the Water Regulatory Commission may be directed by the PCC, upon 
finding that a market participant has engaged in, or fell victim to such act 
or behavior, to stop or redress the same within the functions and powers 
granted to the Commission under this Act; 
(k) 
Require that books, records, and accounts be kept and maintained in 
accordance with a uniform accounting system prescribed by the 
Commission; 
(l) 
Fix and determine proper and adequate rates of depreciation of properties 
and equipment used in water supply, sanitation and/or septage service/s; 


37 
 
(m) 
Impose and collect annual levies and reasonable fees and surcharges as 
may be necessary for achieving the purposes, powers, and functions of 
the Commission: Provided, That the rate of annual levies and fees shall 
be determined strictly on a cost recovery basis for the reasonable and 
actual cost of regulation in accordance with applicable rules and 
regulations on the imposition and increase of charges; 
(n) 
Require the submission of plans, reports on finances and operations, 
performance targets, and accomplishments verified under oaths by the 
owner, if a natural person, or president and other relevant officers of the 
licensee, as may be required by the Commission; 
(o) 
Obtain information on contracts or agreements entered into by service 
providers, and when necessary, require the review or approval of 
contracts or agreements that may impact on the tariff and rates of service 
provision entered into by service providers upon petition or motu proprio 
when in its determination public interest so dictates; 
(p) 
Determine and require the monitoring and submission of such data, 
statistics and other information from any or all licensees as may be 
necessary for the effective and efficient exercise of its duties, functions, 
powers and responsibilities: Provided, that such data, statistics, and other 
information shall also be submitted to the Department for integration in 
the centralized database on water resources. 
(q) 
Investigate, motu proprio or upon complaint in writing, any matter 
concerning the operation of a service provider and violations of Chapters 
VI, VII, and VIII of this Act; 
(r) 
Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate violations motu proprio; 
(s) 
Investigate accidents directly or indirectly arising from or connected with 
the maintenance or operation of a service provider, and make such order 
or recommendation as the public interest may warrant; 
(t) 
Impose penalties and fines, which may include, but are not limited to, 
rebates, refunds, and credits to affected consumers, against any licensee 
or against its owners, directors, officers, agents or representatives for 


38 
 
any violation of this Act or of the license, order, rule regulation or 
requirement issued by the Commission; 
(u) 
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 conditions of its license, order, rule 
regulation or requirement issued by the Commission; 
(v) 
Advise, apprise, and coordinate with the Department, the National Water 
Sector Policy Council, and other relevant agencies of the national or local 
government on any matter relating to water supply, sanitation, and 
sewerage services; 
(w) 
Deputize any official or agency of the government to assist in the 
performance of any of the powers and functions of the Commission; 
(x) 
Appoint an interim or temporary management committee upon appeal 
and after due hearing, to ensure continuity of service in cases a licensee 
fails to meet conditions of the license; 
(y) 
Appoint, hire and maintain adequate staff and personnel, advisers, and/or 
consultants, with suitable qualifications and experience, as necessary; 
(z) 
Exercise original and exclusive jurisdiction over all cases contesting rates, 
fees, fines and penalties imposed by the Regulatory Units in the exercise 
of their powers, functions and responsibilities, as provided under this Act, 
and over all cases involving disputes between and among participants or 
stakeholders in the water supply sanitation, and sewerage services; 
provided, that disputes concerning water rights and water permits shall 
exclusively vested in the Water Resource Allocation Board; and 
(aa) Such other incidental powers and functions as may be necessary to attain 
the objectives of this Act. 
Sec. 30. Composition of the Water Regulatory Commission. – 
(a) 
The Commission shall be a collegial body composed of five (5) full-time 
members consisting of a Chairperson and four (4) members, who shall all 
be appointed by the President of the Philippines. All members of the 
Commission must be citizens and residents of the Philippines, at least 
thirty five (35) years of age, and of good moral character, recognized 


39 
 
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 actual and distinguished 
experience in their respective fields of expertise: Provided, that out of the 
four members of the Commission, at least one (1) shall be a member of 
the Philippine Bar with at least ten years of experience in the active 
practice of law, at least one (1) shall be a certified public accountant with 
at least ten years of experience in active practice; and at least one (1) 
shall be a licensed engineer with at least ten (10) years of experience in 
the water supply, sewerage, or septage management sector; 
(b) 
The term of office of the Chairperson and each member of the 
Commission shall be five (5) years: Provided, that among the members 
first appointed, the Chairperson shall serve for a period of five (5) years, 
two (2) members shall serve for four (4) years and the other two (2) 
members shall serve for three (3) years: Provided further, that any 
member whose term has expired as specified herein shall serve as such 
until his successor shall have been appointed and qualified: Provided 
furthermore, that any appointment to fill a vacancy in the Commission 
arising from death, removal, retirement or resignation shall be made only 
for the unexpired term: Provided, finally, that in no case shall any 
member serve for more than five (5) years in the Commission; 
(c) 
The Commission shall meet as often as may be necessary on such day or 
days as the Chairperson may fix. The presence of at least three (3) 
members of the Commission shall constitute a quorum, which shall be 
necessary for the transaction of any business. The affirmative vote of 
majority of the members of the Commission where a quorum is present 
shall be necessary for the adoption of any order, resolution, decisions, or 
other act of the Commission in the exercise of its quasi-judicial functions: 
Provided, That in promulgating rules, regulations, guidelines and in the 
exercise of its quasi-legislative functions, an affirmative vote of three (3) 
members shall be required; 


40 
 
(d) 
The Chairperson of the Commission shall exercise general executive 
control and supervision of the Commission and its members, staff and 
personnel, agents, and representatives. Within three (3) months from the 
creation of the Commission and the appointment of all members of the 
Commission, the Chairperson shall submit for the approval by the 
President of the Philippines the new organizational structure and 
personnel positions necessary to carry out the powers and functions of 
the Commission, subject to the review and approval of the DBM. The 
personnel positions of the Commission shall be filled by regular 
appointments in accordance with civil service laws, rules, and regulations; 
(e) 
The Chairperson and members of the Commission shall enjoy security of 
tenure and shall not be suspended or removed from office except for just 
cause as specified by law; 
(f) 
The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or 
common law, shall be prohibited from holding any interest whatsoever, 
either as investor, stockholder, officer or director, in any company or 
entity engaged in provision of water supply and distribution, septage 
management and sewerage services and must, therefore, divest through 
sale or legal disposition of any and all interests in the water sector upon 
assumption to office; 
(g) 
The Chairperson and members of the Commission shall not, during their 
tenure, hold any other office or employment. They shall not, during their 
tenure, directly or indirectly practice any profession, except in a teaching 
capacity, participate in any business which, in any way, may be affected 
by the functions of his office, or be financially interested in any contract 
with, or any franchise, or special privileges granted by the government 
or any subdivision, agency, or instrumentality thereof, including 
government-owned and -controlled corporations or their subsidiaries. 
They shall strictly avoid conflict of interest in the conduct of their office. 
They shall not be allowed to appear or practice as counsel or agent on 


41 
 
any matter pending before the Commission for two (2) years following 
their cessation from office; and 
(h) 
No spouse or relative by consanguinity or affinity within the fourth civil 
degree of any of the Chairperson or the members of the Commission may 
appear as counsel nor agent on any matter pending before the 
Commission or transact business directly or indirectly therein during 
incumbency and within two (2) years from cessation of office. 
Sec. 31. Secretariat of the Commission. – The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
such as, but not limited to the following: 
(a) 
Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions; 
(b) 
Coordinate with, monitor, and assess the activities of the Regulatory Units 
to ensure proper implementation of the rules, regulations, and guidelines 
promulgated by the Commission; 
(c) 
Maintain a database on the water supply sanitation, septage, and 
sewerage subsector; and 
(d) 
Coordinate with other relevant agencies of the national or local 
government on any matter relating to water supply, septage, sanitation, 
and sewerage. 
Sec. 32. The Staff. – The Commission shall appoint an Executive Director who 
shall have relevant experience in any of the fields of law, water or utility economics, 
commerce, management, finance, engineering, hydrology or other related fields for at 
least ten (10) years. The Executive Director shall head the Commission Secretariat, 
keep and maintain the official records, and report of the proceedings of the 
Commission, and administer oaths in all matters falling within the jurisdiction of the 
Commission. 
The Executive Director shall be responsible for the effective implementation of 
the policies, plans, programs, rules, regulations, and directives of the Commission; 
coordinate and supervise the activities of the different operating units under the 
Commission; and perform such functions as may be assigned by the Chairperson and 
other members of the Commission. 


42 
 
The Commission shall appoint, fix the compensation, and determine the status, 
qualifications, and duties of the staff of the Commission. The members of the technical 
staff, except those performing purely clerical functions, shall possess at least a 
Bachelor’s Degree in any of the following lines of specialization: law, public 
administration, economics, finance, engineering, accounting, or management. 
Sec. 33. Enhancement of Technical Competence. – The Commission shall 
establish rigorous training programs for its staff for the purpose of enhancing the 
technical competence of the Commission in the following areas: evaluation of technical 
performance and monitoring compliance with service and performance standards, 
performance-based rate-setting reform, environmental standards and such other 
areas as will enable the Commission to adequately perform its duties and functions. 
 
CHAPTER VI 
REGISTRATION AND LICENSING 
Sec. 34. Registration and Licensing of All Water Supply and/or Sanitation 
Services. – All water supply, sanitation, sewerage, and septage service providers, 
including bulk water suppliers and those providing services to subdivisions and other 
service providers, shall register with the Commission and, subject to its rules, 
guidelines, procedures and other issuances of the Commission, obtain a license to 
operate from the appropriate regulatory units: Provided, That the Commission shall 
act on the application for the issuance or the conversion of such licenses and renewals 
thereof within the maximum period of one (1) year as provided under this Act or by 
RA 11032, otherwise known as the "Ease of Doing Business and Efficient Government 
Service Delivery Act of 2018". 
The Commission shall also 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. 
The Commission shall specify the requirements and procedure for existing 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience 


43 
 
and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (COC) issued 
by LWUA, to convert their existing certificates into licenses to operate. 
All local water utilities, existing water service providers or holders of CPCN or 
COC shall be duly prioritized in the issuance of the licenses to operate over the areas 
where they currently operate or as may be covered by their franchises. The submission 
of the CPC, CPCN, provisional authority, or the COC issued by the NWRB or LWUA 
shall be sufficient basis for the issuance of the new and converted or updated licenses 
to operate required and contemplated under this Act; provided, that the existing water 
service provider or holder of CPC, CPCN, provisional authority or the COC has rendered 
satisfactory service and has shown the necessary technical and/or financial capacity 
to continue providing the service to the consumers. 
To ensure continuity of service, the Commission shall complete the issuance of 
such converted or updated licenses not later than six (6) months from the effectivity 
of the implementing rules and regulations issued by the Commission pursuant to this 
Act. 
Unless otherwise provided in this Act or by the Commission, no water supply, 
septage, sanitation, and sewerage service provider shall commence or conduct the 
business of providing water supply, sewerage, septage, 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 invalidated by the Commission, after due notice and 
hearing, where national security, national emergency, or public interest so dictates. 
Sec. 35. Conditions of License. – The Commission may impose such conditions 
in the issued license, as it may deem necessary, such as but not limited to: 
(a) 
Tariffs, rates, and charges that may be imposed on its customers or 
consumers; 
(b) 
Term fixing the duration of the privilege; 
(c) 
Grounds for modification, suspension, or cancellation of the license; 


44 
 
(d) 
Minimum technical performance and service level standards, such as but 
not limited to: (1) water pressure; (2) minimum flow rates; (3) 
connections; (4) sewerage discharge, billing, and metering requirements, 
and sanctions for failure to comply with the standards set; 
(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; and 
(i) 
Such other conditions relevant for the efficient provision of water or 
sanitation services by a licensee. 
Sec. 36. Rights and Duties of Licensees. – 
(a) 
Any person granted a license under this Act or with existing rights under 
concession agreements and related agreements 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, septage, sanitation, and sewerage 
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 in the water supply, sanitation, and sewerage 
industry; 
(3) 
Comply with drinking water quality requirements and standards 
that may be established by the Commission, the Department, and 
the DOH; and 
(4) 
Ensure that provision of services shall not be discontinued without 
notice to, and approval by, the Commission. 
(b) 
Any person granted a license under this Act shall, to the extent allowed 
by law and specified in the license, have the right to acquire or lease land, 


45 
 
lay or repair water or sanitation mains, and other relevant facilities in 
public ways to fulfill the terms and conditions under the license; 
(c) 
Subject to any condition or limitation laid down in the license, a licensee 
may discontinue water supply, sanitation, and sewerage services to a 
customer if such customer defaults in the payment of fees due to the 
licensee for the water supplied or sanitation services provided, or for acts 
of pilferage pursuant to Sections 8, 9, 10, and 11 of Republic Act No. 
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 and prospective customers within 
the service area, a customer service code specifying the manner 
and procedure for: 
(i) 
Metering, billing, and collection of the licensee’s approved 
tariff and other charges; 
(ii) 
Disconnection or suspension of service in case of non- 
payment of tariffs and/or other charges, or acts of pilferage; 
and 
(iii) 
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. 


46 
 
Sec. 37. Setting Tariffs, Rates and Other Charges. – The Commission shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure 
environmental sustainability, economic viability, and a fair return on investments. 
Service providers may apply for the setting of tariffs, rates, and charges based 
on and consistent with a scientific and evidence-based 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) 
Capacity to pay of consumers; 
(e) 
Equity considerations; 
(f) 
Environmental sustainability; 
(g) 
Administrative simplicity; 
(h) 
In cases involving valid and subsisting concession agreements prior to 
the enactment of this Act, the methodology provided under the 
concession agreement; 
(i) 
To the fullest extent practicable, the terms and conditions of the tariffs, 
rates or other price-setting mechanisms set forth in any concession 
agreement, joint venture agreement or other similar agreement for the 
provision of water, septage, or sanitation services by an existing service 
provider. 
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid 
and reasonable unless invalidated by the Commission, after due notice and hearing, 
acting on a protest or contest duly filed with the Commission. 
To ensure continuity of service, applications for setting of tariffs, rates and 
other charges that have not been decided within a period of ninety (90) days from the 
date of filing thereof shall result in a provisional approval of such tariffs, rates, or 
charges. 
Sec. 38. Direct Access. – Fifty-one percent (51%) of the registered water 
consumers in a service area, municipality, city or province may petition for direct 


47 
 
access to water from any water service provider subject to concurrence by and 
reasonable compensation to the service provider and approval by the Commission. If 
the petition for direct access from any water service provider is approved by the 
Commission, the new water service provider shall reimburse the existing service 
provider for, as applicable, either the book value or the market value as determined 
by an independent appraiser accredited by the Commission, whichever is higher, of 
the water source, water supply or water distribution or transmission facilities, pipelines 
and other equipment which shall be transferred to or utilized by the new water service 
provider. The Commission shall promulgate the implementing rules and procedures 
for this mode of service, which shall include, among others, financial and technical 
capability of the new service provider. 
Sec. 39. Innovative Schemes to Improve Efficiency and Management of 
Systems. – The Commission shall promote innovative schemes such as the 
consolidation or integration of water supply, sanitation, and sewerage services, or 
providers in the same service area, where it shall result in improved efficiency, service 
expansion and lower costs. 
To this end, the Commission shall establish and issue such rules and guidelines 
as may be necessary to (a) create performance-based and time-bound 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 VII 
PROCEEDINGS BEFORE THE COMMISSION 
Sec. 40. Proceedings Before the Commission. – For the purpose of any 
investigation, inquiry or proceeding, the Commission shall: 
(a) 
Administer oaths, hear, receive evidence, and decide on cases falling 
within its jurisdiction; 
(b) 
Issue subpoena duces tecum and subpoena ad testificandum; 
(c) 
Appoint hearing officers to hear and receive evidence on behalf of the 
Commission; 


48 
 
(d) 
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. 41. Orders and Decisions of the Commission. – Any order, resolution, or 
decision of the Commission shall be promulgated promptly, expeditiously, reasonably, 
and in writing, and shall state clearly and distinctly the facts and law on which it is 
based. The Commission shall publish and make available for public inspection, all 
decisions and final orders in the adjudication of cases or applications. 
Sec. 42. Appeals Procedure and Prohibition Against Injunction. – 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. 
Sec. 43. Prohibition Against Injunctions. – Except for the Supreme Court, no 
temporary restraining order, preliminary injunction, or preliminary mandatory 
injunction may be issued by any court to restrain any proceeding before, or the 
implementation or execution of any order, ruling, or decision of the Commission. 
 
CHAPTER VIII 
TRANSITORY PROVISIONS 
Sec. 44. Transition Period.– The Department shall, by virtue of this Act be 
subrogated to all the rights and assume all the functions of the government agencies 
and units whose powers and functions have been subsumed, absorbed, transferred or 
attached to the Department. The Commission shall also, by virtue of this Act, be 
subrogated to all the rights, and assume all the functions, 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 in accordance with the rules 
and regulations of the Civil Service Commission (CSC). 


49 
 
The transfer of powers and functions to the Department or the Commission of 
the concerned agencies as herein provided for, shall be deemed completed within two 
(2) years after the effectivity of this Act. 
All agencies transferred, subsumed and attached to the Department or the 
Commission, shall continue to function under their present mandates until the two- 
year transition period mandated under this Act shall have lapsed. The transfer of 
powers and functions shall include all applicable funds, personnel, records, property 
and equipment, as may be necessary. The heads of the affected agencies shall 
continue to serve until replaced. All affected agencies shall not hire any new personnel 
during such transition period except when authorized by the Department or 
Commission, as may be appropriate. 
All rights and functions of the affected agencies are hereby transferred to and 
assumed by the Department or 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. 
During the transition period, any pending applications for adjustment of tariffs, 
rates, and other charges of water and/or sanitation services providers may be 
provisionally approved by the agency or unit concerned. The Commission may, motu 
proprio within two (2) years from the promulgation of its rules and regulations, amend, 
modify, revise, or disapprove such tariffs, rates, and other charges, upon due notice 
and hearing. 
Sec. 45. Absorption or Separation from Service of Employees of the Subrogated 
Agencies. – The current employees of all government agencies and units whose 
powers and functions have been transferred to, absorbed or subsumed by the 
Department or Commission shall enjoy security of tenure, in accordance with their 
staffing pattern and the selection process as prescribed under RA 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 


50 
 
to retire and be entitled to all benefits under existing retirement laws, subject to 
existing rules and regulations of the Commission on Audit. 
Sec. 46. Interim Responsibility of LWUA. - The LWUA shall cease to engage in 
any lending activities under Presidential Decree No. 198, as amended, such as but not 
limited to, credit and background investigation and loan documentation, evaluation, 
award, negotiation, collection, and restructuring, after the effectivity of this Act, except 
for those provided below. 
The LWUA shall continue to collect and monitor the compliance of all financial 
assistance contracts and loan agreements with its debtors contracted before the 
effectivity of this Act and during the transition period as provided under this Chapter; 
provided, further, that the LWUA may restructure these existing financial assistance 
contracts and loan agreements but the such restructuring shall not involve any 
increase in the principal loan amount and/or increase in amount to be disbursed. 
The LWUA shall assign and/or transfer any or all of its financial assistance 
contracts and loan agreements to GFIs, subject to the approval requirements and 
consent of the Parties and the Secretary. 
The LWUA shall assign and transfer to the Department all the grants and 
subsidies extended to the Water Districts. Upon effectivity of the Act, the LWUA shall 
cease to engage in any activities relating to such grants or subsidies, except for the 
collection and monitoring compliance with the terms and conditions of the same; after 
the end of the transitory period, the same shall be transferred to the Department. 
The LWUA shall prepare a list of all existing loans or obligations and their 
respective status and submit the same to the Department within thirty (30) days from 
the effectivity of the IRR of this Act, and an updated list on a quarterly basis. 
The LWUA shall also cease to issue any new COC. All existing COCs issued by 
LWUA shall remain valid, unless the Commission revokes the said COC. The corporate 
existence and juridical personality of water districts shall continue to be recognized 
unless revoked by the DWR. 
 
CHAPTER IX 
FINAL PROVISIONS 


51 
 
Sec. 47. 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. 48. Appropriations. – The amount necessary for the initial implementation 
of this Act shall be charged against the currents year’s appropriations of the agencies, 
entities, divisions, sections or units subsumed or transferred to the Department. 
Thereafter, such amount shall be included in the annual General Appropriations Act. 
Sec. 49. Implementing Rules and Regulations. – A committee composed of the 
Department, the Commission, DEPDev, DOF, DBM, DENR, DA, CSC, and the National 
Commission on Indigenous Peoples, in consultation with other stakeholders, shall 
promulgate the initial rules and regulations necessary for the effective implementation 
of this Act within one hundred eighty (180) days after its effectivity; and 
Sec. 50. 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. 51. Repealing Clause. – 
(a) 
The following provisions are hereby repealed: 
(i) 
The provision with respect to fixing of water rates and sanitation 
service fees of Section 3 (h) and Section 12, and regulation of 
waterworks and deep wells of Section 3 (n), regulation of 
waterworks 
and 
sanitation 
systems 
in 
privately 
owned 
subdivisions of Section 3 (p) of Republic Act 6234; 
(i) 
Section 62 on regulation and Section 63 on rate review 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”, 
Executive Order No. 124-A, , 30 January 1987 - “Reorganization 
Act of the Ministry of Public Works and Highways”, and Executive 


52 
 
Order No. 123, 30 January 1987 - “Reorganization Act of Ministry 
of Social Services and Development”, is hereby repealed or 
modified accordingly; and 
(ii) 
Executive Order No. 22, series of 2023, creating the Water 
Resources Management Office of the DENR. 
(b) 
Section 154, Article V, Chapter I, Title One, Book II of Republic Act No. 
7160 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 is hereby amended accordingly. 
(c) 
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. 52. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,