Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
Water is life’s most critical resource and is intrinsically considered a fundamental human right. 
Article II, Section 15 of the 1987 Constitution mandates the State to protect and promote the 
right to health of the people and instill health consciousness among them. Yet in many parts 
of the Philippines, people endure inadequate and intermittent access to water supply and 
sanitation services.  
The World Health Organization estimates that around 1 in 10 Filipinos do not have access to 
improved water sources.1 Meanwhile, data from a global non-profit organization revealed that 
“more than 3 million people in the Philippines depend on unsafe and unsustainable water 
sources, and 7 million lack access to improved sanitation,”2 making diarrhea one of the leading 
causes of death in the country.3 
Population growth, rapid urbanization, and climate change hazards such as heat waves, 
drought, storm surges, and floods will continuously exacerbate pressures on our water 
resources. These entail compounding ramifications to the general welfare of the public and 
national development. There is therefore an urgent need to put in place a system that would 
effectively address the critical weaknesses of our water and sanitation management (WSM) 
sector including challenges arising from the multiple and fragmented institutions governing it. 
The current institutional regulatory framework of our WSM sector is weak in terms of 
coherence and clarity of purpose. At present, management of water resources in the 
Philippines is shared by more than 30 agencies both at the national and local levels such as 
the National Water Resources Board (NWRB), Local Water Utilities Administration (LWUA), 
Metropolitan Waterworks and Sewerage System (MWSS), National Irrigation Administration 
(NIA), among others. Such has resulted in duplication of functions, constrain in planning, 
overlapping policies, imbalance in water resource distribution, and even conflicts in 
implementing programs and policies which ultimately affect the efficiency of the delivery of 
water and sanitation services to our people.  
The goal of the bill is to provide an integrated and interdisciplinary approach to address the 
issues plaguing our WSM. This bill proposes to rationalize the regulation of water resources 
by the creation of the Department of Water Resources which shall be the primary agency 
1 https://www.who.int/philippines/news/feature-stories/detail/water-shortage-in-the-philippines-threatens-
sustainable-development-and-health 
2 https://water.org/our-impact/where-we-work/philippines/ 
3 https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.544.3015&rep=rep1&type=pdf 
September 27, 2022
10:31 am
5177


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responsible for the comprehensive and integrated identification and mapping of all water 
resources. The Department shall be responsible for planning, policy formulation, and 
management of the ownership, appropriation, utilization, exploitation, development, and 
protection of water resources in the Philippines in accordance with the Integrated Water 
Resources Management (IWRM) Framework. The bill also encourages responsible 
participation of the private sector as an alternative source for financing our water utilities and 
promotes the establishment of innovative infrastructure and public works that address the 
challenges of climate change and accelerate universal access to safe, adequate, affordable, 
and sustainable water supply and improved sanitation services. 
In view of the foregoing, the approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 


3
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT  
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, 
POWERS AND FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “National Water Act”. 
SEC. 2. Declaration of Policy. – Access to water is a basic human right. All water 
belongs to the State which shall govern its development and utilization for the people. 
It is hereby declared the policy of the State to ensure the provision of safe, adequate, 
affordable, and sustainable water supply and improved sanitation services, while 
maintaining the protection, preservation, and revival of the quality of the country’s 
water resources and ecological balance. 
In pursuit of this policy, this Act shall have the principal objective of ensuring and 
accelerating universal access to water supply and sanitation services, in a regulatory 
regime that encourages responsible private sector participation, and shall foster and 
prioritize the establishment   of infrastructure and public works that adopt innovative 
solutions and international best practices to address the challenges of climate change. 
Further, all water and water treatment infrastructure projects are hereby declared as 
projects imbued with national interest. 
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SEC. 3. Definition of Terms. – As used in this Act: 
a.
Bulk water supplier refers to any entity, natural or juridical, whether public or
private, supplying or intending to supply large quantities of raw or treated water
to buyers who will use these for their own consumption, such as industrial
companies, or for retail distribution to consumers such as water service providers
or real estate developers managing their own distribution network.
b.
Environmental services refer to qualitative functions of natural non- produced
assets of land, water, and air, including related ecosystems, and their biota, and
which may be categorized into three basic types: (a) disposal services which
reflect the functions of the natural environment as an absorptive sink for
residuals; (b) productive services which reflect the economic functions of
providing natural resource inputs and space for production and consumption, and
(c) consumer or consumption services which provide for physiological as well as
recreational and related needs of human beings. 
c.
Flood Control refers to methods, acts, and protocols to be observed in order to
prevent and reduce the detrimental and catastrophic effects of flood waters which
include sediment-laden or turbid flows, and hyper- concentrated flows or debris
flows.
d.
Flood Risk Management (FRM) refers to such acts of defining and determining
the appropriate methods, acts, and protocols aimed at preventing and reducing
the risk of incurring loss of both life and property due to flood waters. Flood risk
management consists of a cycle of prevention, mitigation, adaptation,
preparedness and early warning, and response and recovery. The elements of
FRM include: integrating land-use planning and coastal zone management into
water management; adopting a holistic approach so that FRM is part of wider
risk or multi- hazard management of earthquakes, landslides, and storm surges;
managing risk and uncertainty as a whole so it not only mitigates hydrological
uncertainties but also social, economic and political uncertainties on account of
human behavior and the cultural dimensions of FRM.


 
5
e. 
Gender Equality refers to the principle asserting the equality of men and women 
and their right to enjoy equal conditions realizing their full human potentials to 
contribute to and benefit from the results of development, and with the State 
recognizing that all human beings are free and equal in dignity and rights. 
 
f. 
Infrastructure and public works refer only to wholly or primarily water- related 
projects and does not include projects that do not fall within the purview of the 
objectives, power and duties of the Department of Water Resources created 
under this Act. 
 
g. 
Integrated Water Resource Management (IWRM) refers to a systematic, 
collaborative, and multi-stakeholder process which promotes the coordinated 
development and management of water, land, and related resources within 
geophysical boundaries in order to maximize the resultant economic and social 
welfare in an equitable manner, and without compromising the sustainability of 
vital ecosystems. 
 
h. 
Levels of water supply refer to communal sources of water described according 
to location and size of the recipient human settlement as follows: 
1. 
Level I or the point source is a protected well or a developed spring with an 
outlet but without any distribution system, generally adaptable to rural and 
upland areas where houses are thinly scattered, and is a facility which 
usually serves an average of 15 households. 
2. 
Level II or the communal faucet system or stand posts is a system 
composed of a water source, a reservoir, a piped distribution network, and 
communal faucets where one faucet serves 4 to 6 households and is 
generally suitable for rural and urban fringe areas where houses are 
clustered densely to justify a simple piped system. 
3. 
Level III or the waterworks system or individual house connections is a 
system with a water source, a reservoir, a piped distribution network and 
household taps, suitable for densely populated urban areas. 
 


6
i.
License refers to the Water Supply and/or Sanitation Services Operating License
that the Water Regulatory Commission is authorized to grant and issue to service
providers.
j.
Licensee refers to a service provider to whom a license is granted or issued by
the Water Regulatory Commission.
k.
Missionary Water Services refer to water supply or services to areas that have
no existing safe water supply and services due to geographic limitation or
absence of economic and market viability.
l.
National Water Resources Management Plan (NWRMP) refers to a policy
document that contains a framework to guide the development and management
of all the water resources in the Philippines, the general strategies and work to
be pursued to ensure the sustainability of the resource towards water security,
and top-level direction on the utilization of existing water resources in line with
national development plans, policies, and programs in accordance with the
IWRM framework. The NWRMP shall also include a water infrastructure
development program or all waters of the country as well as provide general
guidance on how this shall be supported within an integrated financing
framework that can draw from public, private, and international development
funding sources.
m.
Net Waste Load refers to the difference of the initial waste load of the abstracted
water and the waste load of the final effluent discharge of an industry.
n.
Regulatory Units refer to the offices established under Section 20 of this Act
which issue licenses authorizing the operation of Water Supply and Sanitation
Services, and provide, review, determine, fix, and approve water and sewerage
tariffs, rates, and charges that licensees may impose.
o.
River basin refers to an area of land drained by a stream or body of fixed water
and its tributaries which have a common outlet for surface run-off.


 
7
p. 
River Basin Organization (RBO) refers to multi-stakeholder organizations which 
plan, coordinate, and monitor activities within a river basin cluster. 
 
q. 
Sanitation refers to the provision of facilities and services for the safe 
management of human excreta, from toilet to containment, and storage and 
treatment onsite or conveyance, treatment and eventual safe end use or 
disposal, and includes the safe management of solid waste and animal waste. 
 
r. 
Sediment management refers to control of sediment erosion and deposition in 
rivers, reservoirs, and coastal zones through non-structural and structural 
measures and control works. 
 
s. 
Sustainable Development Goals (SDGs) also known as the 17 Global Goals refer 
to the universal call to action to end poverty, protect the planet and ensure that 
all people enjoy peace and prosperity by 2030 adopted by all United Nations 
Member States in 2015. 
 
t. 
Septage is the liquid and solid material pumped from a septic tank, cesspool, or 
other primary treatment source. 
 
u. 
Septage Management refers to the provision of proper collection, treatment, and 
disposal of septage. 
 
v. 
Service Area refers to the area covered by the water distribution system, 
sewerage, and /or septage management services. 
 
w. 
Service Provider refers to any entity, natural or juridical, whether private or public, 
providing or intending to provide levels II & III water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic, 
residential, industrial, or commercial use. 
 
x. 
Sewage refers to water borne human or animal wastes, excluding oil or oil waste, 
removed from residences, buildings, institutions, and industrial and commercial 
establishments together with such groundwater, surface water and storm waters 


8
as may be present including such waste from vessels, offshore structures, other 
receptacles intended to receive or retain waste or other places or the combination 
thereof. 
y.
Sewerage refers to any system or network of pipelines, ditches, channels or
conduits including pumping stations, lift stations and force mains, service
connections including other infrastructure, devices, or appliances appurtenant
thereto, which include the collection, transport, pumping and treatment of
sewage to a point of disposal.
z.
Sewers refer to pipes or such other works or structures which are built and
constructed to carry, transport, and dispose sewage.
aa. Social inclusion refers to the process of improving the terms for disadvantaged 
individuals and groups to take part in society. 
bb. Tariffs refer to such amounts which may be charged by licensees for their water 
supply and sanitation services based on principles, standards, and guidelines 
established by the Department of Water Resources. 
cc.
Water Demand Management (WDM) refers to any method, whether technical,
economic, administrative, financial, or social that will accomplish one or more of
the following:
1.
Reduce the quantity or quality of water required to accomplish a specific
task;
2.
Adjust the nature of the task or the way it is undertaken so that it can be
accomplished with less water or with lower quality water;
3.
Reduce the loss in quantity or quality of water as it flows from source,
through use, to disposal;
4.
Shift the timing of use from peak to off-peak periods; and
5.
Increase the ability of the water system to continue to serve society during
times when water is in short supply.


 
9
dd.  Water Districts refer to government-owned and controlled corporations organized 
under Presidential Decree No. 198, as amended, created primarily to acquire, 
install, operate, maintain, and improve water supply and distribution systems for 
domestic, industrial and municipal uses of residents and to provide, maintain and 
operate waste water collection, treatment and disposal facilities within the 
boundaries of the district. 
 
ee.  Water pollution refers to any alteration of the physical, chemical, biological, or 
radiological properties of a body of water resulting in the impairment of its purity 
or quality. 
 
ff.  
Water Resource refers to water under the ground or groundwater, water above 
the ground such as surface water, run-offs, floods, stormwater and urban 
drainage, treated wastewater, water in the atmosphere or rain water, and the 
waters of the sea within the territorial jurisdiction of the Philippines. 
 
gg.  Water Resources Regions refer to the contiguous clusters of river basins which 
are grouped together according to the hydrological boundaries, physiographic 
features, and homogeneity in climate, whether or not they straddle different local 
government units, for administrative purposes under the Department of Water 
Resources. 
 
hh.  Water Service Provider (WSP) refers to the water district, any Local Government 
Unit (LGU) - run water utility, Barangay Waterworks and Sanitation Association 
(BWSA), Rural Waterworks Sanitation Association (RWSA), cooperative and 
private sector entity that provides water supply services to any given area. 
 
ii.  
Water supply service refers to any activity comprising Levels I, II and III water 
supply including bulk suppliers, suppliers to subdivisions, and other water service 
providers. 
 
CHAPTER II 
THE DEPARTMENT OF WATER RESOURCES 
 


 
10
SEC. 4. The Department of Water Resources. – There is hereby created and 
established the Department of Water Resources, hereinafter referred to as the 
Department. 
 
SEC. 5. Mandate of the Department. –The Department shall be the primary agency 
responsible for the comprehensive and integrated identification and mapping of all 
water resources, planning, policy formulation, and management of the ownership, 
appropriation, utilization,   exploitation, development, and protection of water 
resources in the Philippines to ensure the optimal use thereof for domestic and 
municipal water supply, sanitation, irrigation, hydropower, industry, navigation, flood 
management, and recreation except fisheries or aquaculture. 
 
The Department shall also be the primary agency responsible for the planning and 
policy formulation towards the attainment of universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sanitation services for all 
Filipinos. 
 
The Department shall be the primary national agency to enforce Presidential Decree 
No. 1067 otherwise known as The Water Code of the Philippines and Republic Act 
No. 9275, otherwise known as the Philippine Clean Water Act of 2004. 
 
The Department shall exercise the powers and functions of the defunct Pasig River 
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and 
abolished under Executive Order No. 93 Series of 2019, specifically the following roles 
that were transferred to the Manila Bay Task Force and DENR through the latter EO: 
a. 
Update and take the lead in the overall implementation of the Pasig River 
Rehabilitation Master Plan, which shall harness the Pasig River’s potential for 
transportation, recreation and tourism purposes while undertaking the 
rehabilitation and restoration of its maritime life; and 
  
b. 
Ensure that the easements provided for in the Civil Code and other relevant 
laws are enforced, especially in all the esteros and waterways that drain into 
the Pasig River as well as abate the dumping of untreated industrial 
wastewater and sewerage into the river, including all acts and omissions in 


 
11
violation of Presidential Decree (PD) No. 984, s. 1976, as amended entitled, 
Providing For The Revision Of Republic Act No. 3931, Commonly Known As 
The Pollution Control Law, And For Other Purposes, PD No. 274, s. 1973 
entitled, Pertaining To The Preservation, Beautification, Improvement And 
Gainful Utilization Of The Pasig River, Providing For The Regulation And 
Control Of Pollution Of The River And Its Banks In Order To Enhance Its 
Development, Thereby Maximizing Its Utilization For Socio- Economic 
Purposes, and other related laws. 
 
SEC. 6. Guiding Principles. – In the pursuit of its mandate, the Department shall be 
guided by the following key principles: 
a. 
The concept of good water governance for water security and sufficiency shall 
be adopted across all levels of governance by stakeholders such as the 
national government, local government, non-government organizations, 
private organizations, individuals, even global societal actors, and in various 
sectors such as water supply, irrigation, fisheries, hydropower, navigation, 
ecosystem services, flood management, climate change, and recreation. It 
shall entail publicly transparent, socially accountable, and multi-stakeholder 
participatory water policy planning, management, and decision-making 
processes. 
 
b. 
Access to safe water supply and improved sanitation is a human right that 
needs to be fulfilled and protected. 
 
c. 
Integrated Water Resource Management (IWRM) shall be adopted as the 
basic framework which is the coordinated development and management of 
water, land, and related resources within hydrological boundaries to optimize 
economic and social welfare without compromising the sustainability of vital 
ecosystems. The IWRM Framework shall include an enabling environment 
that utilizes proper policies, legal instruments, and institutional frameworks for 
effective implementation, participatory and collaborative water policy and 
management decisions, and management instruments for efficient use of 
updated and accurate data, science-based decision support systems, proper 
information, education, communication (IEC) programs, assessment and 


12
allocation tools, or regulatory functions. It shall observe the mutual 
accountability mechanism among stakeholders at the national, regional, and 
global levels reinforcing multi-stakeholder decision-making following a 
framework with specific, measurable, attainable, relevant, and timely actions. 
d.
Each river basin has its unique characteristics relating to the physical, socio
cultural, and other aspects, and water management shall be performed at
river-basin level, involving all the stakeholders at that particular river basin.
e.
Integrated and accurate data collection and analysis and the use of scientific
decision support systems shall be undertaken in water resources
management including flood modeling and warning systems that are essential
for an effective, efficient, and sustainable water resources management
system.
f.
The development of water resources shall include strategies for the mitigation
of water-related hazards and climate change adaptation.
g.
Water resources and services should be provided where they are intended
and most needed so that water is fairly and sustainably managed.
h.
The proper operation and maintenance of waterworks systems resulting in the
uninterrupted and adequate supply and distribution of potable water for
domestic and other purposes, and the proper operation and maintenance of
sewerage systems which are essential services to public health and safety,
are to be ensured at all times. The State shall therefore supervise and control
the establishment, operation, and maintenance of such systems.
SEC 7. Objectives of the Department. – The Department shall: 
a.
Promote and adopt water demand management as a national policy to ensure
that water is optimized, that water efficiency and conservation become a way
of life, that the recycling and reuse of water and treated wastewater are widely
practiced, that water is properly priced to encourage efficient use and


 
13
conservation and that rainwater, flood waters, and run-offs are captured or 
harvested, stored and treated for future use; 
 
b. 
Prioritize and seek the immediate attainment of universal access to safe, 
adequate, affordable and sustainable water supply and improved sanitation 
services for all Filipinos in a manner consistent with the protection, 
preservation, and revival of the quality of the country’s water resources, and 
to adopt all needed measures to advance the right of the people to a balanced 
and healthful ecology in accord with the rhythm and harmony of nature. 
 
c. 
Strengthen and coordinate integrated water resources management planning 
and policy making to ensure sustainable and fair allocation and efficient use 
of water resources among competing uses and users; 
 
d. 
Ensure that integrated water resources management is strongly coordinated 
with land use and coastal and multi-hazard planning and management; 
 
e. 
Develop sustainably, and manage water sources and water resources toward 
water security, taking into consideration water, land, and related resources 
aimed at increasing water dependability for different uses, optimizing 
economic benefits and social welfare without compromising the sustainability 
of vital environmental systems; 
 
f. 
Strengthen and coordinate policy making and planning towards ensuring the 
availability of water for food security and energy security, as well as towards 
the protection of communities and environments against flood and other water 
induced hazards including sediment hazards; 
 
g. 
Ensure that the strategy for water resources development and conservation is 
participatory, and that planners, policymakers and users including community 
members are involved at all levels; 
 
h. 
Develop a standardized pricing framework for water use that accounts for 
environmental externalities; and 


 
14
 
i. 
Ensure that all sources of water, including surface water, groundwater, 
rainwater and floodwater are identified, mapped, monitored, conserved and 
managed for productive use and the resulting wastewater is managed 
properly, reused, and responsibly disposed of following approved 
environmental standards. 
 
SEC. 8. Powers and Functions of the Department. – The Department shall have 
the following powers and functions: 
 
I. 
Policymaking and Planning 
a. 
Ensure that Integrated Water Resources Management (IWRM) is adopted as 
the strategic framework for water management policymaking and planning in 
the country and coordinate the implementation, promotion, revision and 
enhancement of IWRM plans; 
 
b. 
Formulate policies, strategies, and targets in coordination with other relevant 
entities to meet the goals and objectives for water supply and sanitation, water 
quality, irrigation, hydropower, flood control, stormwater utilization, and urban 
drainage. Such policies shall, among other guidelines, integrate the issues of 
water and sanitation, food security, energy, environment and flood control, and 
climate change; 
 
c. 
Formulate and develop policies to promote universal access to safe, 
adequate, affordable, and sustainable water supply, and improved sanitation 
services for all Filipinos; 
 
d. 
Regularly update, every five years or as deemed necessary by the 
Department, and in consultation with other agencies and stakeholders, the 
NWRMP following the IWRM framework and integrate therein a national land 
use plan; 
  
e. 
Undertake river basin survey, inventory and appraisal of water and related 
resources, and develop comprehensive basin-wide plans of storage, 


 
15
retardation, and control to maximize conservation and multipurpose use of 
water in the basin; 
 
f. 
Conduct continuing hydrological and hydrometeorological surveys and studies 
of the country’s renewable water supply, and establish, operate, and maintain 
observation station networks with a view towards formulating long-term 
policies to balance the sustainability and optimal multiple use of water 
resources, defining the hydrologic boundaries of basins of the existing water 
supply sources and developing or updating and implementing countrywide 
comprehensive basin-wide master plans; 
 
g. 
Strengthen and coordinate policy making and planning for flood management, 
integrated with stormwater or urban drainage and appropriate retention or 
retarding basins in order to harvest and reuse water, and to plan against, 
prevent, and minimize the detrimental and catastrophic effects of flooding; 
 
h. 
Assist and provide the National Economic and Development Authority (NEDA) 
with the required data and input from the water sector in the formulation of the 
country’s short-term and long-term strategic development plans and actions, 
and recommend to the NEDA Board the adoption of general policies and 
guidelines for water resources development; 
 
i. 
Review, approve, and provide oversight over all water-related development 
plans and programs of any agency within the context of the NWRMP, and 
overall national plans and programs; 
 
j. 
Develop and implement, in coordination with other relevant agencies, effective 
codes, standards, benchmarks, and reasonable guidelines to ensure the 
safety of all public and private water structures in the country, and assure 
efficiency and proper quality in the construction of water, sanitation, irrigation, 
hydropower, flood control and drainage infrastructure; 
 
k. 
Ensure that gender equality, social inclusion, environmental protection, 
climate resiliency, and disaster risk reduction are integrated into any water 


 
16
resource management planning, policy making, and the design and 
construction of water infrastructure; 
 
l. 
Ensure that the planning and design of water infrastructure considers the 
highest efficiency and most appropriate technology and quality, in accordance 
with national development objectives; 
 
m. 
Review existing guidelines appropriate for private sector participation in the 
water sector and submit recommendations to the Public-Private Partnership 
(PPP) Center of NEDA and other concerned agencies to promote and enable 
more PPPs in the sector; 
 
n. 
Build a central repository of water data and effect inter-sectoral, inter- agency, 
and inter-departmental coordination on all aspects of data gathering and 
management for water resources development planning and compel the 
submission of statistics and data on water utilization with the aim of 
operationalizing the integrated approach to water resources management; 
 
o. 
Ensure the effective implementation of all the provisions of Republic Act No. 
9275, Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter 
II of Presidential Decree No. 856, otherwise known as the Code on Sanitation 
of the Philippines; 
 
p. 
Promote Philippine participation in information sharing and education on best 
practices in support of international efforts to achieve universal access to safe 
water and improved sanitation; and the integration of water, energy, 
environment and food security; and 
 
q. 
Issue and promulgate rules, regulations and guidelines as may be necessary 
to implement and enforce its powers and functions under this Act. 
 
II. 
Resource Regulation 
a. 
Manage and conserve the country’s water resources to ensure the optimal 
use thereof for domestic water supply, sanitation, irrigation, hydropower, 


 
17
navigation, flood control, and recreation purposes, and enhance and maintain 
water quality, conserve watersheds, control water pollution, and restore the 
environment, without compromising the natural ecosystem functions and 
services; 
 
b. 
Regulate and control the utilization, abstraction, diversion and development of 
water resources, taking in consideration their equitable distribution among 
competing demands and determine the standards of beneficial and priority 
uses of water in times of crisis and national emergencies; 
 
c. 
Formulate, promulgate, and enforce rules and regulations for the development 
and optimum use of water resources and its administration and management, 
including coherent water protocols, operating rules of all existing and future 
water infrastructure; general criteria, methods and standards for basic data 
collection and project identification, formulation and planning, and appropriate 
sanctions to be imposed for non-compliance; 
 
d. 
Regularly review regulations prescribed by any government agency pertaining 
to water use, exploitation, development, and conservation or protection of 
waters, water resources, and watershed or basin areas with respect to this 
Act; 
 
e. 
Impose fees or charges, as may be deemed necessary for water resources 
conservation and protection, such as: 
1. 
Polluter’s Fee, which shall be based on the net waste load depending on 
the wastewater charge formula pursuant to Republic Act No. 9275; 
2. 
Raw water price, which shall take into account, among others, the 
scarcity of water; and 
3. 
Appropriate payment structures for environmental services: 
 
f. 
Deputize LGUs to collect the national fees or charges for resource regulation 
within their respective jurisdictions; 
 


 
18
g. 
Collect, regularly update, monitor, and analyze water resources data including 
climatology, hydrological and other water-related data and ensure that such 
data is easily accessible by relevant and authorized users; 
 
h. 
Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and appraisal 
of surface and groundwater potentials of the country, and determine the 
annual renewable water available per water resources region; 
 
i. 
Maintain a database that will contain updated relevant information on water 
data which will be accessible by relevant and authorized users; 
 
j. 
Develop and continuously update a computerized decision support system 
that incorporates data management systems relating to acquisition and 
database, model base in terms of physical design, planning and decision 
models, and user-friendly interface concerning graphical and visualization 
tools; 
 
k. 
Conduct and promote special studies and research on water economics and 
other water resources development and management issues and concerns 
such as climate change, weather modification, flood monitoring and modeling, 
environmental quality, and desalination; and 
 
l. 
Raise public awareness through information, education and communications 
programs, and build capacities for informed participation in water resources 
management at the national and river-basin level. 
 
III. 
Institutional Arrangement with Public Water Organizations 
a. 
Develop guidelines including rules of partnership, between and among the 
Department, field offices of national government agencies, LGUs and other 
stakeholders in water resource management, and facilitate the establishment 
of multi-stakeholder river basin organizations (RBOs) per river basin, and 
strengthen and support existing RBOs and monitor their activities; 
 


 
19
b. 
Develop materials for capacity building and training of prospective RBOs; 
 
c. 
Authorize its representatives or any deputized agent to enter any property of 
public dominion with or without prior notice and consent, any private land, 
building or enclave, whether inhabited or not, for the purpose of conducting 
hydrologic surveys and investigations, including assessing and evaluating the 
conditions of water facilities installed, and determining compliance with water 
laws and standards; 
 
d. 
Provide technical assistance to water users including farmers, communities, 
and LGUs and other water service providers (WSP) whether directly or in 
coordination with other agencies on all aspects of integrated water resources 
management; 
 
e. 
Respond to consumer complaints, and ensure the adequate promotion of 
consumer interests; 
 
f. 
Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Department; 
 
g. 
Appoint, hire, and maintain adequate staff and personnel, advisers or 
consultants with suitable qualifications and experience, as necessary, subject 
to existing rules and regulations. 
 
IV. 
Coordination 
a. 
Coordinate and integrate water resources development activities of the 
country within the context of national plans and policies for social and 
economic development; 
 
b. 
Coordinate with other government agencies, universities, academe and 
private professional groups in all aspects of data gathering, the conduct of 
special studies and research on all related aspects of water resources 
management and development such as climate change, environmental 
quality, desalination, and the development of operating strategies, 


 
20
procedures, and protocols and accompanying computerized decision tools for 
major water facilities; 
 
c. 
Coordinate with the concerned and relevant agencies engaged in flood 
control, flood risk management, and drought risk management; and 
 
d. 
Coordinate proactively with LGUs to ensure the integration of water resources 
development plans into their comprehensive land use plans (CLUPs), 
Comprehensive 
Development 
Plans 
(CDPs) or Provincial Physical 
Framework and Development Plan (PPFDP). 
  
V. 
Other Functions 
a. 
Create when necessary, water resource subsidiaries, instrumentalities, and 
entities to engage in water transmission, water distribution, waste water 
treatment and management, and sanitation in accordance with existing 
relevant laws. 
 
b. 
Enter into contracts, joint venture agreements or understanding, public- 
private partnerships, and memorandum of agreements or understanding, 
either domestic or foreign, relating to investment and financing water- related 
projects, under such terms and conditions as the Department may deem 
proper and reasonable subject to existing laws. 
 
c. 
Exercise such other powers and functions necessary or incidental to the 
effective administration and management of the country’s water resources. 
 
SEC. 9. Secretary of the Department of Water Resources. – The authority and 
responsibility for the exercise of the mandate of the Department and for the discharge 
of its powers and functions shall be vested in the Secretary of the Department, 
hereinafter referred to as the Secretary, who shall: 
a. 
Advise the President on the promulgation of executive or administrative 
orders, regulations, proclamations and other issuances relative to matters 
under the jurisdiction of the Department; 
 


 
21
b. 
Establish the policies and standards for the operation of the Department 
pursuant to the President’s guidelines; 
 
c. 
Promulgate rules and regulations necessary to carry out the objectives, 
policies, and functions of the Department; 
 
d. 
Exercise supervision and control over all bureaus and offices under the 
Department; 
 
e. 
Supervise all attached agencies and corporations in accordance with law; 
 
f. 
Represent the Department in contracts, awards, and other similar 
agreements; 
 
g. 
Delegate authority for the performance of any power or function, as defined 
herein to officials and employees under his direction as deemed appropriate; 
 
h. 
Act as the Chairperson of the governing board of the attached agencies of the 
Department; 
 
i. 
Designate and appoint officers and employees of the Department, excluding 
the Undersecretaries, Assistant Secretaries, and Regional and Assistant 
Regional Directors, in accordance with the civil service laws, rules and 
regulations; and 
 
j. 
Perform such other duties and responsibilities as may be provided by law. 
 
SEC. 10. Office of the Secretary. – The Office of the Secretary shall be composed 
of the Secretary, Undersecretary, Assistant Secretary and the Secretary’s immediate 
staff. 
 
SEC. 11. Undersecretaries. – The Secretary shall be assisted by not more than five 
(5) Undersecretaries, who shall be appointed by the President upon the 
recommendation of the Secretary namely: Undersecretary for Resource Regulation 


 
22
and Governance, Undersecretary for Inland Waters and Water for Agriculture, 
Undersecretary for Resource Development, Undersecretary for Planning and Policy 
and Undersecretary for Missionary Water, Indigenous People, and Special Concerns. 
 
The Secretary is hereby authorized to delineate and assign the respective functional 
areas of responsibility of the Undersecretaries in accordance with the mandate and 
objectives of the Department: Provided, That no Undersecretary shall be assigned 
purely to administrative responsibilities. Within their respective functional areas of 
responsibility, the Undersecretaries shall: 
a. 
Advise and assist the Secretary in the formulation and implementation of the 
policies, plans, programs and projects of the Department; 
 
b. 
Supervise all the operational activities of the assigned units for which the 
Undersecretary is responsible to the Secretary; and 
 
c. 
Perform such other functions deemed necessary as may be assigned or 
delegated by the Secretary to promote efficiency and effectiveness in the 
delivery of public services or as may be required by law: Provided, That the 
Undersecretary for Planning and Policy shall, in coordination with the Planning 
and Policy Service, be primarily responsible for advancing current efforts in 
attaining the ultimate goal of universal access to water supply and sanitation 
systems, and sustainable management of water resources under the SDGs, 
and the integration of water, energy, environment and food security. 
 
SEC. 12. Assistant Secretaries. – The Secretary shall be assisted by six (6) Assistant 
Secretaries to be appointed by the President of the Philippines upon the 
recommendation of the Secretary: one each for Planning and Policy Service, Decision 
Support System Service, Resource Regulatory Service, Comptrollership and Financial 
Management Service, Legal and Legislative Service, and Administrative and Human 
Resources Management Service. 
 
No person shall be appointed Secretary, Undersecretary and Assistant Secretary of 
the Department unless the person is a citizen and resident of the Philippines, of good 
moral character, of proven integrity, competence and expertise in water resource 


 
23
management: Provided, That at least one (1) of the Undersecretaries and at least two 
(2) of the Assistant Secretaries shall be career officers. 
 
SEC. 13. Organizational Structure. – The Department shall be composed of the 
following organizational units: 
a. 
Department Proper. – The Department shall consist of the Office of the 
Secretary, the Offices of the Undersecretaries and Assistant Secretaries, the 
Internal Audit Office, the Public Affairs Office, the Water Pollution Adjudication 
Board, the Planning and Policy Service, Decision Support System Service, 
Administrative and Human Resources Service, Legal and Legislative Service, 
Comptrollership and Financial Management Service, Resource Regulation 
Service, and the Water Resources Regional Offices. 
 
b. 
Attached agencies. – The Department shall exercise administrative 
supervision over the following agencies for purposes of policy and program 
coordination, monitoring, and evaluation: 
1. The Local Water Utilities Administration (LWUA), whose mandate, powers, 
and functions are defined in Presidential Decree No. 198, otherwise known 
as the Public Water Utilities Act of 1973, as amended, shall be transferred 
from the Department of Public Works and Highways and attached to the 
Department. It shall continue to primarily function as a specialized lending 
institution for the promotion, development, and financing of local water 
utilities. In the implementation of its functions, the LWUA shall: 
i. 
Prescribe minimum standards and regulations in order to assure 
acceptable standards of construction materials and supplies, 
maintenance, operation, personnel training, accounting and fiscal 
practices for local water utilities; 
ii. Furnish technical assistance and personnel training programs for local 
water utilities; 
iii. Monitor and evaluate local water standards; and 
iv. Effect system integration, joint investment and operation, district 
annexation and de-annexation whenever economically warranted as 
amended by Sec. 22, Presidential Decree No. 768. 


 
24
2. The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandate, powers, and functions are defined under Republic Act No. 6234, 
as amended entitled, An Act Creating The Metropolitan Waterworks And 
Sewerage System And Dissolving The National Waterworks And Sewerage 
Authority; And For And For Other Purposes, shall be transferred from the 
DPWH and attached to the Department: Provided, That the MWSS shall 
continue to facilitate the exercise by the concessionaires of their 
responsibility; carry out accounting and notification functions; monitor, 
report, and administer loans; perform related functions in connection with 
existing projects; manage and dispose its retained assets; and manage and 
operate the Umiray-Angat Transbasin Project. 
3. The National Irrigation Administration (NIA), whose mandate, powers, and 
functions are defined under Republic Act No. 3601 as amended by 
Presidential Decree No. 552 and Presidential Decree No. 1702; 
4. The Laguna Lake Development Authority (LLDA), whose mandate, powers 
and functions are defined under Republic Act No. 4850, as amended 
entitled, An Act Creating The Laguna Lake Development Authority, 
Prescribing Its Powers, Functions And Duties, Providing Funds Therefor, 
And For Other Purposes shall be transferred from the DENR and attached 
to the Department. 
 
The LLDA shall continue to serve as the lake management and 
development authority similar to a multi-stakeholder river basin 
organization and shall ensure the implementation of the Laguna Lake 
Master Plan which shall be updated by the Department to ensure alignment 
with the NWRMP. 
 
Any other agency performing water resources management, conservation 
and protection functions may be transferred to the Department as the 
President deems necessary. 
 
c. 
Offices, Functions and Personnel to be Completely Subsumed under the 
Department. – The following offices with their powers, functions, personnel, 


 
25
applicable funds and appropriations, records, equipment and property shall be 
subsumed under the Department: 
1. The National Water Resources Board (NWRB) with all its divisions and 
sections, whose mandate, powers and functions are provided in 
Presidential Decree No. 424, as amended; 
2. The River Basin Control Office (RBCO) of the DENR whose mandate, 
powers and functions are provided in Executive Order No. 510 and 
Executive Order No. 816, as amended; 
3. The Manila Bay Coordinating Office (MBCO) of the DENR which was 
strengthened by virtue of DENR Administrative Order (DAO) 2011-01 to 
coordinate the efforts of the fourteen (14) national agencies covered by the 
Mandamus Order of the Supreme Court to rehabilitate Manila Bay; 
4. The Water Resources Management Division of the Bureau of Soils and 
Water Management of the Department of Agriculture (DA); 
5. The Water Supply and Sanitation Unit of the Department of the Interior and 
Local Government (DILG); and 
6. The Water Quality Management Section of the Environmental Management 
Bureau (EMB) of the DENR. 
 
d. 
Functions to be Transferred to the Department. – The following functions of 
the respective agencies, bureaus, and units shall be transferred to the 
Department: 
1. The hydrological surveys and groundwater mapping function of the Mines 
and Geosciences Bureau (MGB) of the DENR; 
2. The hydrological surveys monitoring of stream flow and water data 
collection function of the Bureau of Design and Bureau of Research and 
Standards of the DPWH; 
3. The protection and conservation of natural wetlands such as lakes, 
marshes, swamps of the Biodiversity Management Bureau of the DENR; 
4. The planning, programming, administration, monitoring, management of 
the National Sewerage and Septage Management Program (NSSMP) by 
the DPWH. 
5. The flood management planning and sediment management function of the 
Flood Control Management Cluster of the DPWH; 


 
26
6. The Water Resource Management Division and the water research 
functions of the Soils and Water Research Division of the Bureau of Soils 
and Water Management under the DA. All soil-related functions shall be 
retained under the Bureau which shall be renamed as the Bureau of Soils. 
 
e. 
Support Services. – The Department shall create the following support 
services: 
1. The Planning and Policy Service shall provide the Department with the 
capability to undertake water infrastructure development planning and 
programming, and shall exercise the following functions: 
i. 
Advise the Secretary on all matters relating to water resources 
planning; 
ii. Assist the Undersecretary for Planning and Policy on all matters related 
to the specific functions of the position; 
iii. Formulate strategies and priorities for water resources management 
and development consistent with national development objectives, and 
initiate or undertake relevant surveys for development planning; 
iv. Develop and regularly update a comprehensive and integrated National 
Water Resources Management Plan and ensure its integration into 
existing land use plans; 
v. Coordinate river-basin planning following the integrated water 
resources management framework and the river-basin approach; 
vi. Formulate or update existing River Basin Master or Comprehensive 
Plans which includes all aspects of water management and 
development such as water supply and sanitation, irrigation, flood 
control and stormwater or urban drainage, drought risk management, 
water resource development systems and other public water works 
projects, including phasing of implementation; 
vii. Identify, based on the river basin master plan, priority packages for 
water infrastructure development per river basin, including water 
supply, sanitation, irrigation, flood control   and   stormwater or urban 
drainage, drought risk management, water resource development 
systems and other public works projects, package project proposals for 
funding and prioritize project implementation and the allocation of funds 


 
27
and other resources and undertake or supervise and evaluate the 
conduct of feasibility studies and project preparation thereof; 
viii. Evaluate and appraise all regional and inter-regional infrastructure 
water development plans and programs as to their feasibility and 
consistency with approved strategies and medium and long -term 
plans; 
ix. Gather, analyze, and organize needed statistical data and information; 
x. Provide technical assistance related to its functions to the other 
services, bureaus and the regional offices as needed; 
xi. Conduct hydrological and hydraulic surveys and assessments of 
surface waters; 
xii. Develop general criteria and standards on project investigation, 
formulation, planning; 
xiii. Develop guidelines and standards on social inclusion in water 
resources management and ensure policies, programs and plans are 
compliant with the gender and development framework of the 
government; 
xiv. Coordinate closely with PAGASA for rainfall and other climate data 
which shall be considered in the planning for water resources 
development and management and for various water infrastructure; 
and 
xv. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective attainment of the abovementioned 
objectives. 
 
2. The Decision Support System Service shall provide the Department with 
water resource management tools and computerized decision support 
system that incorporates a data management system relating to acquisition 
and database and model base in terms of physical design, planning and 
decision models including services related to networking, data 
management, and information and knowledge or learning management 
systems for administrative and non-technical support It shall provide the 
Secretary timely reports on the status of various Department projects and 
activities. For this purpose, it shall exercise the following functions: 


 
28
i. 
Provide the Secretary the necessary data and processed information 
to aid in policy and management decisions under the mandate of the 
Department; 
ii. Publish available real-time raw water data as well as verified or 
validated water data in print or electronic form using latest internet 
technology; 
iii. Conduct and publish in print and/or electronic form, standard data 
analysis such as basic statistical analysis, trend analysis, analysis of 
runs, and cluster analysis; 
iv. Develop and continuously update water resource management, 
computerized decision support systems (DSS) that incorporate data 
management systems relating to acquisition and database, model base 
in terms of physical, design, planning and decision models, and user-
friendly interface such as graphical and visualization tools. The DSS is 
composed of: 1) a measurement or data acquisition system; 2) 
information or database management system; 3) analytical and 
numerical models for design, planning, decision or evaluation 
purposes, and 4) a user-friendly interface which includes graphical 
interface or visualization tools. 
v. Develop and maintain specific models to include the following: 
a. long-term climatologic and weather forecasting model; 
b. watershed models and river-flood plain models; 
c. groundwater models and coupled to surface water models; 
d. flood forecasting model for major rivers; 
e. optimization-simulation 
management 
models for watershed 
conservation, conjunctive surface and groundwater use, irrigation 
scheduling, normal and emergency operations of multi-purpose 
reservoirs; and 
f. 
water quality and ecological models. 
 
vi. Develop and administer the management information system and 
knowledge systems of the Department to: 
a. Retrieve, process, and monitor information on all projects and 
activities in the web portal; 


 
29
b. Conduct and apply systems and process engineering, software 
development, software configuration management; 
c. Develop and manage its corporate database, unified database for 
water industry, data warehouse, other water information resources, 
library services and document management and archiving 
services; 
d. Develop and manage its Information and Communications 
Technology (ICT) infrastructure and ICT related-services including 
computer networking and voice communications services and data 
exchange, and 
e. Manage the literacy and training services of the Department on 
various ICT and, Knowledge Management (KM) tools and 
applications, including information and knowledge management. 
 
vii. Perform such other related functions and activities which are necessary 
for the effective administration of the management information and 
knowledge systems of the Department. 
 
3. The Administrative and Human Resource Service shall provide the 
Department with services relating to human resources development, 
personnel records, facilities maintenance, medical and dental, security, 
property and procurement services, and shall exercise the following 
functions: 
i. 
Advise the Secretary on all matters relating to internal administration 
and human resources management; 
ii. Prepare and implement an integrated personnel development plan that 
shall include provisions for merit promotions, performance evaluation, 
job rotation, incentive awards systems, and health and welfare 
services; 
iii. Provide services related to human resource training, education and 
development including manpower, career planning and forecasting, 
and development of indigenous training materials; 
iv. Develop, establish, and maintain an efficient and cost-effective property 
procurement system and facilities and coordinate or otherwise interface 


 
30
with relevant agencies, whether government or private, for the purpose 
of developing or upgrading the system; 
v. Develop, establish, and maintain an efficient and effective security 
system covering, among others, personnel, physical installations, 
facilities, equipment, documents and materials including the conduct of 
security investigations; 
vi. Coordinate with the appropriate government agencies for a more 
efficient conduct of administrative processes; 
vii. Develop, establish, and maintain an efficient records system; 
viii. Provide assistance in its area of specialization to the Department 
Proper, bureaus and regional and water district offices and, when 
requested, to the government agencies and corporations attached to 
the Department; and Perform such other related functions and activities 
which are necessary for the effective management of the resources of 
the Department, including its human resources. 
 
4. The Legal and Legislative Research Service shall provide the Department 
with services on such legal affairs as contract letting and litigation, legal and 
legislative research, complaints and investigation, legal counselling and 
other matters of law, and shall exercise the following functions: 
i. 
Advise the Secretary on all matters relating to legal and legislative 
affairs; 
ii. Prepare Department contracts and legal instruments, review and 
interpret all contracts and agreements entered into by the Department 
and evaluate all legal proposals; 
iii. Conduct administrative investigation and the review of administrative 
charges against officers and employees of the Department; 
iv. Exercise functional jurisdiction over the legal staffs of Regional Offices; 
v. Provide legal assistance to the Department Proper, the bureaus and 
regional offices and when requested, the attached corporations; 
vi. Develop 
and 
prepare 
the 
Department’s 
Legislative 
Agenda, 
recommend presidential certification of the urgency of priority water 
bills, and other water-related legislation; 


 
31
vii. Coordinate and maintain linkages between and among the various 
offices, bureaus, regional offices and attached agencies to the 
Department along with other government agencies on policy matters 
affecting the Department’s mandate in relation to legislation; 
viii. Perform liaison and networking activities in relation to the enactment of 
related laws relating to water resources issues in legislative 
policymaking bodies such as the Senate of the Philippines, the House 
of Representatives, and the various Sanggunians; 
ix. Monitor the progress of the Department’s priority or certified bills to 
ensure their passage; and 
x. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
5. The Comptrollership and Financial Management Service shall provide the 
Department with coordinated services relating to financial   systems and 
procedures, budget, cash, accounting and all financial housekeeping 
matters, and shall exercise the following functions: 
i. 
Advise the Secretary on all matters relating to the accounting of 
government 
expenditures 
and 
receipts, 
budgeting 
and 
cash 
management, project finances and financial systems and procedures; 
ii. Prepare budget proposals and pursue formal budget authorizations, 
undertake budget execution, and prepare and submit all appropriate 
reports to the proper offices; 
iii. Develop and maintain accounting, financial and assets management 
systems, procedures and practices in the Department Proper, Bureaus 
and Regional Offices; 
iv. Review and appraise systems and procedures, organizational 
structure, assets management practices, accounting, and other 
records, reports, and performance standards such as budgets and 
standard costs of the Department, bureaus, and regional offices; 
v. Provide assistance in its area of specialization to any unit of the 
Department and, when requested, to government corporations and 
councils attached to the Department; and 


 
32
vi. Perform such other related functions and activities which are necessary 
for the effective financial management of the Department. 
 
6. The Resource Regulation Service shall provide the Department with 
services for the effective regulation of all water-related services and 
activities and shall exercise the following functions: 
i. 
Advise the Secretary on all matters relating to resource regulations; 
ii. Determine, grant and regulate water rights for the appropriate, optimal 
and sustainable use of surface and ground water; 
iii. Determine and evaluate waterworks and sewerage licenses, and 
submit evaluation results to the Water Regulatory Commission for the 
latter’s consideration in granting of licenses; 
iv. Investigate violations of the water rights and the Water Code, and 
impose the appropriate sanctions in accordance with existing laws, 
rules and regulations as well as future rules and regulations which the 
Department shall promulgate; 
v. Adjudicate water use conflicts; and 
vi. Perform such other related functions and activities which are necessary 
for the effective regulation of water-related services. 
 
7. The Internal Audit Service shall regularly conduct a comprehensive audit of 
various Department activities and shall exercise the following functions: 
i. 
Advise the Secretary on all matters relating to management control and 
operations audit; 
ii. Conduct a performance audit of the management and operations of the 
Department, its activities, the performance of all units, and determine 
the degree of compliance of all operating units with established 
objectives, policies, standards, methods and procedures, government 
regulations and contractual obligations of the Department; 
iii. Review and appraise systems and procedures, organizational 
structure, assets management practices, accounting and other records, 
and performance standards such as budgets and standard costs of the 
Department Proper, bureaus and regional offices; 


 
33
iv. Analyze and evaluate management deficiencies and recommend 
realistic courses of action; and 
v. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
8. The Public Affairs Service shall enhance relations with all stakeholders 
including the media, for the effective dissemination of information relating 
to water-related issues, including important announcements on policies and 
activities of the department that is of interest to the general public. It shall 
ensure that women, men, elderly, and people with disabilities shall be 
consulted, organized and take active part in all aspects of water resources 
development and management activities. It shall also lead the planning and 
organizing of special events, and shall exercise the following functions: 
i. 
Public Awareness 
a. Advise the Secretary on matters pertaining to public affairs; 
b. Develop and supervise the implementation of comprehensible 
communications programs on relevant policies, programs and plans of 
the Department; 
c. Produce and supervise the dissemination of communication materials 
in line with the priorities of the Department and national government 
public information programs; 
d. Conduct public opinion and attitude surveys to identify the interests and 
concerns of the stakeholders of the Department; 
e. Establish policies on the presentation and publication of the content of 
the communication materials for dissemination to print and broadcast 
media; 
f. 
Establish and maintain linkages with the tri-media and a presence in 
social media; 
g. Coordinate the conduct of interviews and news conferences; 
h. Make public announcements on matters relating to the work and 
activities of the Department through the print and broadcast media, 
either through press releases or live interviews; 


 
34
i. 
Coordinate with various Department units, concerned government 
agencies, tri-media and other stakeholders on matters related to the 
above-enumerated functions; and 
j. 
Coordinate with the appropriate national government agencies involved 
in public information affairs. 
 
ii. Promote Participation 
a. Conduct public consultations and discussions; 
b. Develop and disseminate relevant and appropriate materials and 
programs for public information and education, as well as advocacy 
campaign; 
c. Conduct seminars and workshops involving the LGUs and the general 
public on current water issues and problems; and 
d. Conduct capability building seminars of various stakeholders to 
promote meaningful participation in the Department’s policy making, 
planning, development and implementation of various programs and 
projects. 
 
iii. Special Events 
a. Coordinate the organization and promotion of special events and water 
exhibits; 
b. Act as the focal office for all water related events; and 
c. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
f. 
Bureaus. – The Department shall create bureaus which shall each be headed 
by a Bureau Director. The Bureau Director shall be responsible for the efficient 
and effective discharge of the functions of the Bureau concerned. The Bureau 
Director shall be assisted by one (1) Assistant Director. 
1. Bureau of Flood Control and Drainage shall plan and design flood control 
and drainage structures and facilities in accordance with technical 
standards, guidelines and manuals. For this purpose, it shall have the 
following duties and responsibilities: 


 
35
i. 
Formulate policy, strategies and programs on flood risk management 
in the context of integrated flood management (IFM) which integrates 
water, land, coastal zone and multi-hazard management. In integrating 
land use planning and water management, the Department shall 
harmonize and synthesize plans to enable the sharing of information 
between land-use planning and water management authorities. In this 
regard, a holistic approach shall be adopted by making the IFM a part 
of a wider risk or multi- hazard management system that includes 
earthquakes, landslides, fires, tsunami, and other calamities of the 
same gravity or nature; 
ii. Integrate climate change and disaster risk reduction and management 
in policies and plans; 
iii. Prepare master plans of flood management and drainage in river basins 
in coordination with the concerned water resources region and river 
basin organizations; 
iv. Prepare master plans for urban drainage in cities and municipalities; 
v. Prepare feasibility studies of recommended measures in the master 
plans; 
vi. Plan and design structural measures for flood control and drainage; 
vii. Implement and collaborate with concerned agencies on the formulation 
and adoption of non-structural measures for flood control and drainage; 
viii. Patrol and investigate rivers, and monitor stream flows; 
ix. Conduct post-disaster investigation and evaluation and damage 
assessment of flood infrastructures after extreme events; 
x. Conduct research and development on water and sediment-related 
disasters; 
xi. Develop design guidelines, criteria, and standards on flood control and 
drainage structures; 
xii. Provide technical assistance to other agencies, LGUs, and other 
stakeholders; 
xiii. Advise the Secretary on declaring flood control areas and recommend 
guidelines for flood plain management plans in these areas; and 
xiv. Perform such related activities which are necessary for the effective 
performance of its functions. 


 
36
 
2. Bureau of Water Quality Management shall supervise and exercise control 
over all aspects of water quality management to ensure the sustainability 
of the country’s water resources and the protection of the environment. It 
should take into account proper and integrated treatment of freshwater and 
wastewater within the whole process. For this purpose, the Bureau shall 
exercise the following functions: 
i. 
Establish water quality guidelines for freshwater and coastal or marine 
waters as basis for classifying water bodies in the country. Specifically, 
develop water quality indices or composite metrics to measure the 
quality status and health of natural water bodies in relation to ecological 
integrity and function; 
ii. Establish effluent standards for point discharges to receiving bodies of 
water; 
iii. Establish internationally accepted procedures for sampling and 
analysis; 
iv. Prepare an integrated water quality management framework; 
v. Prepare the ten-year water quality management plans for each water 
quality management area as part of the River Basin Master Plans and 
in support of the NWRMP; 
vi. Classify groundwater sources and prepare a national groundwater 
vulnerability map; 
vii. Classify or reclassify all water bodies according to their beneficial 
usages using the established water quality guidelines established; 
viii. Issue permits, clearances, and similar instruments pursuant to the 
Clean Water Act of 9 2004; 
ix. Collect the wastewater discharge fees for all permittees; 
x. Monitor the compliance of water discharge permittees with the effluent 
standards; 
xi. Regularly monitor the water quality of major water bodies in the country 
and analyze the data to identify possible sources of pollution; 
xii. Issue notices of violations and/or cease and desist orders for those 
found in violation; 


 
37
xiii. File the needed cases against violators with the Water Pollution 
Adjudication Board (WPAB); 
xiv. Serve as secretariat of the WPAB; and 
xv. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
3. A Water Resources Regional Office (WRRO) shall be organized per water 
resources region and shall be responsible for implementing the mandates, 
powers and duties of the Department at the field level, except for 
policymaking which will be vested solely in the Department. The formulation 
of the master plan for the nearby river basins such as the Pasig-Marikina-
Laguna Lake-Cavite, shall be the responsibility of the Department. Each 
WRRO shall perform the following duties and responsibilities: 
i. 
Formulate or update and coordinate the river basin master plans for 
river basins within its jurisdictions ensuring consistency with the 
National Water Resources Management Framework Plan; 
ii. Advocate and strongly support the creation and functioning of multi-
stakeholder river basin organizations (RBOs) and serve as the 
secretariat of the said RBOs; 
iii. Undertake and evaluate the planning, design, and work supervision 
functions of the Department for the water infrastructures within the 
region; 
iv. Ensure the implementation of laws, policies, programs, rules and 
regulations regarding the abovementioned infrastructure as well as 
public and private physical structures; 
v. Provide technical assistance related to the water-related functions of 
other agencies within the region especially the local government; 
vi. Coordinate with other departments, agencies, institutions and 
organizations, especially local government units within the region in the 
planning and implementation of the river basin master plans; 
vii. Conduct consultations with the local communities, take appropriate 
measures to ensure that the services of the Department are responsive, 
and recommend such appropriate actions as may be necessary; and 


 
38
viii. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives. 
 
The Department shall retain existing Project Management Offices as may be required, 
which shall be under the supervision and control of the appropriate Water Resources 
Regional Office unless otherwise determined by the Secretary for reasons of supra- 
regional scope, magnitude and multi-functional coverage. 
 
Each Water Resources Regional Office shall be headed by a Water Resources 
Regional Director who shall be responsible   for   efficiently   and   effectively carrying 
out the duties and responsibilities of the Office. Towards this end, the Water 
Resources Regional Director shall exercise functional and administrative supervision 
over all units within the region and is authorized   to commit resources and assign 
personnel to integrated regional water resources management, water supply and 
sanitation management, and flood control and flood risk management initiatives. The 
Water Resources Regional Director shall also perform such other related duties and 
responsibilities as may be assigned or delegated by the Secretary or as may be 
required by law. 
 
The Water Resources Regional Director shall be assisted by two (2) Assistant Water 
Resources Regional Office Directors who shall exercise supervision over (1) the 
planning, project design and evaluation function and (2) technical assistance to the 
River Basin Organizations within the water resources region. 
 
SEC. 14. Water Pollution Adjudication Board. – There is hereby created a Water 
Pollution Adjudication Board under the Office of the Secretary. The Board shall be 
composed of the Secretary as Chairperson, two (2) Undersecretaries as may be 
designated by the Secretary, the Director of Water Quality Management Bureau, and 
three (3) other representatives from other stakeholders to be designated by the 
Secretary as members. 
 
The Board   shall   assume   the   powers   and   functions   of   the   National Pollution 
Control Commission with respect to the adjudication of water pollution cases under 


 
39
Republic Act No. 3931 entitled, An Act Creating The National Water And Air Pollution 
Control Commission, Presidential Decree 984 entitled Providing For The Revision Of 
Republic Act No. 3931, Commonly Known as the Pollution Control Law, And For Other 
Purposes, particularly with respect to Section 6 letters e, f, g, j, k and Republic Act No. 
9275.  The Bureau of Water Quality Management shall serve as the Secretariat of the 
Board. These powers and functions may be delegated to the field officers of the 
Department in accordance with rules and regulations to be promulgated by the Board. 
 
CHAPTER III 
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
 
SEC. 15. Interface and Institutional Arrangements with Other Agencies. – 
a. 
The Department of Health (DOH) shall continue to have primary authority and 
responsibility for setting and enforcing drinking water quality standards. The 
Department shall coordinate with the DOH in this aspect, and shall ensure 
consistency of standards and targets, as well as the compliance of permittees 
with mandated standards; 
 
b. 
The Department of Environment and Natural Resources (DENR) shall continue 
to have primary authority and responsibility for protecting the environment and 
managing the country’s watersheds; 
 
c. 
The Department of Energy (DOE) and the National Power Corporation (NPC) 
shall continue to have primary authority and responsibility for establishing and 
operating hydropower plants, but shall ensure that hydropower plant 
development plans are consistent with the National Water Development and 
Management Plan; 
 
d. 
The Department shall coordinate with the DA to ensure agricultural development 
that reduces long-term pollution for surface water and groundwater, and 
agricultural and industrial economic development that employs water efficiency, 
water recycling or reuse, and the appropriate treatment of wastewater; 
 


 
40
e. 
The Department shall coordinate with the National Disaster Risk Reduction 
Management Council (NDRRMC) to ensure that its plans and designs for flood 
control, flood risk management and drought risk management are aligned with 
the objectives and plans of the Department; 
 
f. 
 The Department shall coordinate with Climate Change Commission (CCC), 
Philippine Atmospheric, Geophysical and Astronomical Services Administration 
(PAGASA), and National Mapping and Resource Information Authority 
(NAMRIA) for scientific studies, integrated surveys, mapping, charting, and 
decision support systems; 
 
g. 
The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources; 
 
h. 
The Department shall coordinate with the Philippine Reclamation Authority and 
economic zone authorities on water resources development and water 
requirements within reclamation areas and economic zones, respectively; and 
 
i. 
The Department shall coordinate with relevant government agencies, including 
local government units (LGUs), with respect to development projects and shall 
ensure cross-cutting collaboration between and among all water subsectors and 
facilitate inter-agency subsector coordination, strategic development, planning, 
monitoring and provision of technical, institutional and financial capacity building 
support to their different stakeholders at the water subsector level. 
 
SEC. 16. National Water Sector Policy Board. – The National Water Sector Policy 
Board (NWSPB) shall be created and shall be headed by the Secretary of the 
Department of Water Resources with the Secretary of the National Economic and 
Development Authority as the Vice-Chairperson, and the Secretaries of the DOH, 
DILG, DOE, DA, Department of Social Welfare and Development; DPWH; Department 
of Budget and Management (DBM); Office of the President, and DENR, and National 
Commission on Indigenous Peoples as members. The Department shall provide 
personnel to serve as Secretariat to the Board. 
 


 
41
SEC. 17. Powers and Functions of the National Water Sector Policy Board. – The 
NWSPB shall perform policymaking, coordination, integration, supervision, monitoring 
and evaluation functions, and shall have the following responsibilities: 
a. 
Approve the NWRMP which shall serve as a principal guide to water 
management efforts in the country and shall be reviewed every five (5)-years 
interval, or as may be deemed necessary, in order to ensure its relevance to 
the times; 
 
b. 
Provide overall policy direction and recommend policies on water resources 
requiring Presidential decision; 
 
c. 
Advise the President on the status of water management and supply, 
recommend to the President the declaration of a state calamity in areas 
affected by water supply, and submit proposals to restore normalcy in the 
affected areas; 
 
d. 
Ensure a multi-stakeholder participation in the development, updating, and 
sharing of information system as policy, planning and decision- making tools 
consistent with IWRM. 
  
SEC.18. Transfer of Rights and Obligations. – The Department shall, by virtue of 
this Act, be subrogated to all the rights and assume all the obligations of the 
government agencies and units whose powers and functions have been subsumed, 
absorbed, transferred or attached to the Department in accordance with the rules and 
regulations of the Commission on Audit, and the Civil Service Commission, and other 
applicable laws. The transfer of powers and functions as herein provided shall take 
effect within six (6) months of the effectivity of this Act. As such, all affected agencies, 
offices, units shall continue to function under their present mandates. 
 
CHAPTER IV 
WATER REGULATORY COMMISSION 
 
SEC.19. Water Regulatory Commission. – There is hereby created and established 
as an independent, quasi-judicial regulatory body to be known as the Water 


 
42
Regulatory Commission, hereinafter referred to as the Commission, which shall be 
organized within one hundred twenty (120) days after the effectivity of this Act. 
 
The Commission shall be placed under the administrative supervision of the 
Department as an attached agency. 
 
The Commission shall have a Board of Commissioners, and shall be vested with 
powers and functions, as conferred and set forth hereunder. 
 
SEC. 20. The Regulatory Units. – The regulatory units of the Commission shall be 
composed of the central regulatory unit and the regional regulatory units. 
 
The economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, 
PEZA, and TIEZA are hereby transferred to the Commission, and shall collectively 
comprise its central regulatory unit for water supply and sanitation services that: (a) 
provide services to more than one province; and (b) are owned, operated and/or 
maintained by special economic zones and Metro Manila concessionaires. 
 
The regional regulatory units shall be established by the Commission in accordance 
with this Act and the rules, regulations, guidelines, and standards that the Commission 
shall issue. 
 
SEC. 21. Powers and Functions of the Commission. – The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether 
private or public, providing or intending to provide levels II & III water supply, including 
suppliers to subdivisions and /or other service providers, sewerage, and/or septage 
treatment and disposal services for domestic, residential, institutional, industrial or 
commercial use. 
 
The Commission shall exercise the following powers and functions: 
a. 
Issue and promulgate rules, regulations and guidelines as may be necessary 
to implement and enforce its powers and functions under this Act; 
 


 
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b. 
Promulgate and enforce just and reasonable technical standards, 
classifications and measurements of service; 
 
c. 
Establish rules and regulations to monitor, avoid, and provide remedies for 
any market power abuse or anti-competitive or discriminatory act or behavior 
by or against any participant in the water supply and sanitation sector. Upon 
finding that a market participant has engaged in, or has fallen victim to such 
act or behavior, the Commission shall act to stop or redress the same. Such 
remedies may, without limitation, include the imposition of price controls, 
issuance of injunctions, requirement of divestment or disgorgement of excess 
profits, invalidation of contracts and imposition of fines and penalties pursuant 
to this Act. 
 
d. 
Adopt and require that books, records, and accounts be kept and maintained 
in accordance with the prescribed uniform accounting system; 
 
e. 
Fix and determine proper and adequate rates of depreciation of properties and 
equipment used in water supply and sanitation services; 
 
f. 
Impose and collect annual levies determined as a percentage of gross 
revenue accruing in relation to the licensed activities, and reasonable fees and 
surcharges as may be necessary for achieving the purposes, powers and 
functions of the Commission; 
 
g. 
Require the submission reports of finances and operations, verified under 
oaths by the owner or president and secretary of the board of the licensee; 
 
h. 
Determine and require the monitoring and submission of such data, statistics 
and other information from the regulatory units and any or all licensees as may 
be necessary for the effective and efficient exercise of its duties, functions, 
powers and responsibilities. 
 


 
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i. 
Investigate, motu propio or upon a written complaint, any matter concerning 
the operation of the service and issues on price manipulation and anti- 
competitive behavior; 
 
j. 
Impose penalties and fines against any licensee or against its owners, 
directors, officers, agents or representatives for any violation of this Act or of 
the license, order, rule regulation or requirement issued by the Commission; 
 
k. 
Require any licensee to pay the actual expenses incurred by the Commission 
in any investigation if it shall be found that a licensee violated any provision of 
this Act or of the license, order, rule regulation or requirement issued by the 
Commission; 
  
l. 
Advise, apprise and coordinate with other relevant agencies of the national or 
local government on any matter relating to water supply and sanitation 
services; 
 
m. 
Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
 
n. 
Appoint an interim or temporary management committee upon appeal and 
after due hearing, to ensure continuity of service in case a licensee fails to 
meet conditions of the license and the concerned Regulatory Unit fails or 
refuses to appoint an interim management committee as provided in the 
following section. 
 
o. 
Appoint, hire and maintain adequate staff and personnel, advisers, or 
consultants, with suitable qualifications and experience, as necessary; 
 
p. 
Exercise original and exclusive jurisdiction over all cases contesting rates, 
fees, fines and penalties imposed by the regulatory units in the exercise of 
their powers, functions and responsibilities, as provided under this Act, and 
over all cases involving disputes between and among participants or 
stakeholders in the water supply and sanitation services; and 


 
45
 
q. 
Such other incidental powers and functions as may be necessary to attain the 
objectives of this Act. 
 
SEC. 22. Powers and Functions of the Regulatory Units. – The regulatory units of 
the Commission shall have the following powers and functions: 
a. 
Issue licenses authorizing the operation of water supply and sanitation 
services in any specified area or areas within the Philippines. 
 
b. 
Impose fines, charges and other penalties upon any provider and/or its officers 
and stockholders who shall fail or refuse to register or obtain a license prior to 
operation or commencement of business, as provided hereunder. 
 
c. 
Review, determine, fix, and approve, consistent with the rules, guidelines, 
procedures and methodologies which the Commission shall provide, 
proposed water and sewerage and septage management tariffs, rates and 
charges that licensees may impose upon their consumers; 
 
d. 
Appraise and value property and equipment used by licensees in providing 
water supply and sanitation services. 
 
e. 
Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities; 
 
f. 
Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu propio price manipulation and anti-
competitive behavior; 
 
g. 
Investigate accidents directly or indirectly arising from or connected with the 
maintenance or operation of the service, and make such order or 
recommendation as the public interest may warrant; 
 
h. 
Require the review and/or approval of contracts or agreements that may 
impact on the tariff and rates of service provision entered into by service 


 
46
providers upon petition or motu propio where in its determination public 
interest so dictates; 
 
i. 
Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment 
reports; 
 
j. 
Impose and collect annual levies determined as a percentage of gross 
revenue accruing in relation to the licensed activities, and reasonable fees and 
surcharges as may be necessary for achieving the purposes, powers, and 
functions of the regulator; 
 
k. 
Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof, as 
may be necessary or required by the Commission; 
 
l. 
Amend, modify, suspend, or revoke any license issued by them, after due 
notice and hearing, on any of the following grounds: 
1. when the facts and circumstances on the strength of which the license was 
issued have been materially misrepresented or have materially changed; 
2. where the licensee has failed to meet or comply with terms, conditions, and 
performance targets, including but not limited to service expansion, that 
may have been set in the license; 
3. where the licensee is found to be manifestly inefficient in the operation of 
or provision of water supply and sanitation services in its area; or 
4. when the licensee thereof has violated or willfully refused to comply with 
any order, rule or regulation of the Commission or any provision of this Act; 
 
m. 
Appoint an interim management committee to ensure continuity of service in 
case a licensee fails to meet the conditions of the license; and 
 
n. 
Submit performance plans and reports as required by the Commission. 
 
SEC. 23. Composition of the Water Regulatory Commission. – 


 
47
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, of recognized integrity and competence 
in the field of law, business, commerce, finance, accounting or public 
administration, water or utility economics, management, physical or 
engineering services, hydrology and other related services, with at least three 
(3) years of actual and distinguished experience in their respective fields of 
expertise: Provided, That out of the four (4) members of the Commission, at 
least one (1) shall be a member of the Philippine Bar with at least ten (10) 
years of experience in the active practice of law, and at least one (1) shall be 
a certified public accountant with at least ten (10) years of experience in active 
practice. 
 
b. 
The term of office of each member of the Commission shall be seven (7) years: 
Provided, That among the members first appointed, the Chairperson shall 
serve for a period of seven (7) years, two (2) members shall serve for five (5) 
years and the other two (2) members shall serve for three (3) years: Provided 
further, That any member whose term has expired as specified herein shall 
serve as such until a successor shall have been appointed and qualified: 
Provided furthermore, That any appointment to fill a vacancy in the 
Commission arising from death, removal, retirement or   resignation shall be 
made only for the   unexpired term: Provided, finally, That in no case shall any 
member serve for more than seven (7) years in the Commission. 
 
c. 
The Commission shall meet as often as may be necessary on such day or 
days as the Chairperson may fix. The presence of at least three (3) members 
of the Commission shall constitute a quorum, which shall be necessary for the 
transaction of any business. The affirmative vote of majority of the members 
of the Commission where a quorum is present shall be necessary for the 
adoption of any order, resolution, decisions, or other act of the Commission in 
the exercise of its quasi-judicial functions: Provided, That in promulgating 


 
48
rules, regulations, guidelines and in exercising its quasi-legislative functions, 
an affirmative vote of three (3) members shall be required. 
 
d. 
The Chairperson of the Commission shall exercise general executive control 
and supervision over the Commission and its members, staff and personnel, 
agents and representatives. Within three (3) months from the creation of the 
Commission and the appointment of all Members of the Commission, the 
Chairperson shall determine and establish the organizational structure and 
plantilla positions necessary to   carry   out the powers and functions of the 
Commission, including those of the central and provincial regulatory units 
subject to the review and approval of the DBM. 
 
e. 
The plantilla positions of the Commission shall be filled by regular 
appointments in accordance with Civil Service laws, rules, and regulations. 
Members of the Commission shall enjoy security of tenure and shall not be 
suspended or removed from office except for just cause as specified by law. 
 
f. 
The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or common 
law, shall be prohibited from holding any interest whatsoever, either as 
investor, stockholder, officer or director, in any company or entity engaged in 
provision of water supply and distribution, septage management and 
sewerage services and must, therefore, divest through sale or legal disposition 
of any and all interests in the water sector upon assumption to office. 
 
SEC. 24. Secretariat of the Commission. – The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
including the following: 
a. 
Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions; 
 
b. 
Coordinate with Regulatory Units to ensure proper implementation of the 
rules, regulations and guidelines promulgated by the Commission; 
 


 
49
c. 
Monitor and assess activities of the Regulatory Units vis-à-vis their respective 
annual performance plans and targets; 
 
d. 
Maintain a database on the water supply and sanitation subsector; and 
 
e. 
Coordinate with other relevant agencies of the national or local government 
on any matter relating to water supply and sanitation. 
 
SEC. 25. Executive Director. – The Commission shall appoint an Executive Director 
who shall head the Commission Secretariat, keep and maintain the official records of 
the Commission, render a report on the proceedings of the Commission, and 
administer oaths in all matters falling within the jurisdiction of the Commission. 
 
The Executive Director shall be responsible for the effective implementation of the 
policies, plans, programs, rules, regulations and directives of the Commission; 
coordinate and supervise the activities of the different operating units under the 
Commission; and perform such functions as may be assigned by the Chairperson 
and/or other members of the Commission. 
 
SEC. 26. Compensation and Other Emoluments. – The compensation of the 
members of the Commission and its staff shall conform to provisions of Republic Act 
No. 6758 as amended, otherwise known as the Compensation and Position 
Classification Act of 1989. 
 
CHAPTER V 
REGISTRATION AND LICENSING 
 
SEC. 27. Registration and Licensing of All Water Supply and Sanitation 
Services. – All water supply and sanitation service providers, including bulk water 
suppliers and those providing services to subdivisions and other service providers, 
shall register with the Commission and, subject to such rules, guidelines, procedures 
and other issuances of the Commission, obtain a license to operate from the 
appropriate regulatory units. 
 


 
50
The Commission shall ensure that the grant and revocation of licenses are carried out 
fairly, transparently, and without discrimination. Issuances of the Commission shall 
specify, among others, the qualifications, requirements, and procedure for the grant 
and revocation of licenses including the standards and performance targets that shall 
continuously be complied with to keep the licenses valid. 
 
Unless otherwise provided in this Act or by the Commission, no public water supply 
and sanitation service provider shall commence or conduct the business of providing 
water supply and sanitation services without first obtaining a license. 
 
Concession agreements and other contracts for water supply provision and water 
sanitation and treatment services currently existing shall remain valid and enforceable 
unless otherwise terminated, after due notice and hearing for reasons provided in the 
existing terms and conditions under the concession or service agreement or contract, 
or when invalidated by the Commission, after due notice and hearing, where national 
security, national emergency or public interest so dictates. 
 
SEC 28. Conditions of License. – The Commission or the concerned regulatory unit, 
may impose such conditions on the licensee as it may deem necessary, such as: 
a. 
Tariffs, rates and charges that may be imposed from its customers or 
consumers. 
 
b. 
Term fixing the duration of the privilege. 
 
c. 
Grounds for modification, suspension or cancellation of the License. 
 
d. 
Minimum technical performance and service level standards. 
 
e. 
Expansion targets and service level improvements over time. 
 
f. 
Restrictions or conditions for transferability of the business or controlling 
interest in the business. 
 
g. 
Reportorial requirements and obligations of the grantee. 


 
51
 
h. 
Submission to annual performance audit by the Commission or its duly 
authorized representative(s). 
 
The Commission shall specify the requirements and procedure for existing holders of 
A Certificate of Public Convenience (CPC), Certificates of Public Convenience and 
Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by 
LWUA, to convert their existing certificates into licenses to operate in accordance with 
Sec. 27 herein. 
 
All existing providers of water supply and sanitation services without a legal and valid 
Certificate of Public Convenience, Certificate of Public Convenience and Necessity, or 
Certificate of Conformance shall register with the Commission and apply for a license 
within six (6) months from the effectivity of this Act. 
 
SEC. 29. Rights and Duties of Licensees. – 
a. 
Any person granted a license under this Act shall have the obligation to ensure 
that licensed activities are conducted to further public interest and, in 
particular: 
1. Foster the maintenance and development of efficient, coordinated, and 
viable operation of their licensed activities; 
2. Ensure that their water supply and sanitation services are provided in a 
diligent, conscientious and workman like manner, in accordance with 
applicable laws rules and regulations issued by the Commission and the 
generally accepted standards and practices of the water supply and 
sanitation industry; and 
3. Comply with drinking water quality requirements and standards that may be 
established by the Commission. 
 
b. 
Any person granted a license under this Act shall, to the extent allowed by law 
and specified in the license, has the right to acquire or lease land, lay or repair 
water or sanitation main lines and other relevant facilities in public ways to 
fulfill the terms and conditions under the license. 
 


 
52
c. 
Subject to any condition or limitation laid down in the license, a licensee may 
discontinue water supply and sanitation services to a customer if such 
customer defaults in the payment of fees due to the licensee for the water 
supplied or sanitation services provided, or for acts of pilferage pursuant to 
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the 
Water Crisis Act of 1995. 
 
d. 
Any license issued under this Act shall contain provisions designed to ensure 
that licensees: 
1. Publish the Tariff and other charges approved by and the terms and 
conditions imposed by the Commission for the provision of water supply 
and sanitation services. 
2. Prepare, within three (3) months from the issuance of a license, in 
consultation with its customers, a Customer Service Code   specifying the 
manner and procedure for: (a) metering, billing, and collection of the 
licensee’s approved tariff and other charges, (b) disconnection or 
suspension of service in case of non-payment of tariffs and/or other 
charges, or acts of pilferage, and (c) recommendation and recovery of 
arrears in tariffs and other charges; 
3. Maintain financial accounts in accordance with the manner and procedure 
specified in the license and as may be required by the Commission; and 
4. Maintain and upon request by anyone during regular office hours, promptly 
make available for scrutiny and inspection such data, statistics and other 
information, as may be required by the Commission. 
 
SEC. 30. Setting Tariffs, Rates, and Other Charges. – Regulatory units shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure 
economic viability and a fair return on investments. 
 
Tariffs, rates and charges shall be based on and consistent with a rate-setting 
methodology that the Commission shall, after due consultation, define and publish, 
taking into account the following, among others: 
a. 
Reasonable and prudent capital and recurrent costs of providing the service 
including a reasonable rate of return on capital; 


 
53
 
b. 
Efficiency of the service; 
 
c. 
Incentives for enhancement of efficiency; 
 
d. 
Willingness to pay of the customers/consumers; 
 
e. 
Equity considerations; and 
 
f. 
Administrative simplicity. 
 
Tariffs, rates, and charges set by the regulatory units shall be presumed valid and 
reasonable unless a protest or contest is filed with the Commission. 
 
SEC. 31. Direct Access. – Fifty-one (51) percent of the registered water consumers 
in a municipality, city or province may petition for direct access to water from any water 
service provider subject to concurrence by the service provider and approval by the 
Commission. The Commission shall promulgate rules and procedures for this mode 
of service. 
 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of 
Systems. – The Commission shall promote innovative schemes such as the 
consolidation or integration of water supply and sanitation services, or providers in the 
same service area, where it shall result in improved efficiency, service expansion and 
lower costs. 
  
To this end, the Commission shall establish and issue such rules and guidelines as 
may be necessary to (a) create incentives to encourage efficiency and service 
expansion; (b) establish the standards and targets that service providers are required 
to meet; and (c) define the fines and penalties that shall be imposed for failure to meet 
such standards and targets. 
 
CHAPTER VI 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 


 
54
 
SEC. 33. Proceedings Before the Commission. – For the purpose of any 
investigation, inquiry or proceeding, the Commission shall: 
a. 
Issue subpoena duces tecum and subpoena ad testificandum; 
 
b. 
Appoint hearing officers to hear and receive evidence on behalf of the 
Commission; 
 
c. 
Cite any person or party for contempt for refusal to appear, testify, or comply 
with an order of the Commission on any matter that is the subject of 
investigation, inquiry or proceeding before the Commission. 
 
SEC. 34. Orders and Decisions of the Commission. – Any order, resolution, or 
decisions of the Commission shall be promulgated promptly, expeditiously, 
reasonably, and in writing, and shall state clearly and distinctly the facts and law on 
which it is based. 
 
The Commission shall publish and make available for public inspection, all decisions 
and final orders in the adjudication of contested cases or applications. 
 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. – 
a. 
The orders, rulings, and decisions of the Commission are final and executory 
unless appealed to the Court of Appeals within fifteen (15) days from receipt 
of notice of such order, ruling or decision: Provided, That orders, rulings, and 
decisions of the Commission approving tariffs, shall be immediately executory 
and may be suspended only upon appeal and filing of a bond, in an amount 
to be fixed by the Commission, to answer for damages occasioned by the 
suspension or stay of execution of such orders, rulings, and decisions. 
 
b. 
No injunction may be issued by any court or administrative agency to restrain 
any proceeding before, or the implementation or execution of any order, ruling, 
or decision of the Commission, except on the basis of a question of law 
brought before the Supreme Court on certiorari. 
 


 
55
c. 
Any act or decision of the Commission shall not be invalidated merely because 
of a defect or irregularity in, or in connection with, the appointment or vacancy 
in the Office of the Chairperson or any other member of the Commission. 
 
CHAPTER VII 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
 
SEC. 36. Interface with Other Sector Regulators. – 
a. 
The DENR shall continue to exercise primary jurisdiction over programs aimed 
at protecting the environment and the quality of water sources from waste and 
pollution, and shall promulgate rules, regulations, and standards in this regard. 
The Department of Health (DOH) shall continue to exercise primary 
jurisdiction over the determination and enforcement of standards for quality 
drinking water and sanitation. 
 
b. 
The Commission shall coordinate with the: 
1. DOH to ensure that the standards and targets for quality drinking water and 
sanitation are consistently complied with; 
2. LGUs for development projects relating to water supply and sanitation; and 
3. Department of Public Works and Highways for flood control and harnessing 
and impounding of water. 
 
SEC. 37. Transfer of Rights and Obligations. – The Commission shall, by virtue of 
this Act, be subrogated to all the rights, and assume all the obligations, of the Water 
Utilities Division of the NWRB, the regulatory offices of MWSS and LWUA, the 
regulatory units of all special economic zones, and all other government agencies and 
units whose powers and functions have been transferred to the Commission. 
 
The transfer of powers and functions to the Department of the concerned agencies as 
herein provided for, shall be deemed completed within six (6) months after the 
effectivity of this Act. The transfer of powers and functions shall include all applicable 
funds, personnel, records, property and equipment, as may be necessary. The same 
shall apply to agencies which have been attached to the Department by virtue of this 
Act. 


 
56
 
All agencies transferred, subsumed and attached to the Department, shall continue to 
function under their present mandates until the six-month transition period mandated 
under this Act shall have lapsed. The heads of the affected agencies shall continue to 
serve until replaced. 
 
All rights and obligations of the affected agencies are hereby transferred to and 
assumed by the Commission, and shall be acted upon in accordance with the rules 
and regulations of the Commission on Audit and other pertinent laws, rules, and 
regulations. 
 
SEC. 38. Absorption or Separation from Service of Employees of the Subrogated 
Agencies. – The current employees of the Water Utilities Division of the NWRB, the 
regulatory offices of MWSS and LWUA, the regulatory units of all special economic 
zones, and all other government agencies and units whose powers and functions have 
been transferred to the Commission shall enjoy security of tenure, and shall be 
absorbed by the Department, in accordance with their staffing pattern and the 
selection process as prescribed under Republic Act No. 6656 or the Government 
Reorganization Law. 
 
Employees opting to be separated from the service as a consequence of the 
consolidation, and reconstitution under the provisions of this Act shall, within one (1) 
month from their separation or phase out from the service, receive separation benefits 
in accordance with existing laws, and those who are qualified to retire shall be allowed 
to retire and be entitled to all benefits under existing retirement laws. 
 
SEC. 39. Water Trust Fund. – There is hereby created a Water Trust Fund in the 
Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees, 
registration fees, supervision and regulation enforcement fees, filing fees, testing fees, 
and other service income from the use of water resources shall be remitted to the 
Water Trust Fund. The trust fund shall be accounted separately from the government’s 
general revenues and shall be automatically appropriated to the Department. 
Proceeds from the trust fund shall be utilized for water development, water sanitation 
and waste water treatment and management, and water sustainability programs and 


 
57
projects authorized under this Act: Provided, That a maximum of ten percent (10%) of 
the total income generated from raw water extraction shall be given as share of the 
concerned local government unit or indigenous peoples (IP) community who own the 
specific areas or land where the raw water was sourced. 
 
CHAPTER VIII 
FINAL PROVISIONS 
 
Sec. 40. Applicability of Ease of Doing Business Law. – The prescribed processing 
time provided under Section 9.b of Republic Act No. 11032, otherwise known as the 
Ease of Doing Business and Efficient Government Service Delivery Act of 2018, shall 
be applicable to all agencies and LGUs covered under this Act particularly on 
accessing government services. 
 
Sec. 41. Transitory Provisions. – Performance audit of all water-related agencies 
and institutions, including LWUA and water districts, MWSS, MWSS-RO and its 
concessionaires, LGU-run utilities, Tourism Infrastructure and Enterprise Zone 
Authority, Philippine Economic Zone Authority, Bases Conversion and Development 
Authority, Subic Bay Metropolitan Authority, DILG, and NIA, shall be conducted by the 
Department. 
  
SEC. 42. Appropriations. – The amount necessary to cover the initial implementation 
of this Act shall be charged against the currents year’s appropriations of the agencies 
and offices transferred and subsumed by the Department and the Commission in the 
General Appropriations Act. Thereafter, such sums as may be necessary for the 
continued implementation of the Act shall be included in the annual GAA. 
 
SEC. 43. Implementing Rules and Regulations. – Within one hundred eighty (180) 
days from the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in 
consultation with concerned government agencies, the Presidential Legislative Liaison 
Office shall promulgate rules and regulations for the effective implementation of this 
Act. 
 


 
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SEC. 44. Separability Clause. – If any reason, any portion or provision of this Act 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby 
shall continue to be in full force and effect. 
 
SEC. 45. Repealing Clause. – 
a. 
The following provisions are hereby repealed: 
1. Section 3 (h) and Section 12 on the provision with respect to fixing of water 
rates and sanitation service fees, Section 3 (n) on the provision with respect 
to regulation of waterworks and deep wells, and Section 3 (p) on the 
provision with respect to regulation of waterworks and sanitation systems 
in privately owned subdivisions of Republic Act 6234 entitled, An Act 
Creating The Metropolitan Waterworks And Sewerage System And 
Dissolving The National Waterworks And Sewerage Authority, And For 
Other Purposes, as amended. 
2. Title III on Local Water Utilities Administration Law of Presidential Decree 
No. 198 otherwise known as the Provincial Water Utilities Act of 1973, as 
amended by Letter of Instruction No. 700 - Providing Measures To Control 
And Regulate Increase In Water Rates, Letter of Instruction No. 744 – 
Relative To Reliable Water Supply At Reasonable Rates In The 
Countryside on the, Executive Order No. 124, 30 January 1987 - 
Reorganization Act of the Ministry of Public Works and Highways, 
Executive Order No. 123, 30 January 1987 - Reorganization Act of Ministry 
of Social Services and Development. 
3. Republic Act No. 3601 as amended by Presidential Decree No. 552 and 
Presidential Decree No. 1702 pertaining to the creation of the National 
Irrigation Administration; 
4. Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order 
No. 124, dated 30 January 1987, Reorganizing the Department of Public 
Works and Highways, Redefining Its Powers and Functions, and For Other 
Purposes on renaming and reorganizing the National Water Resources 
Council into the National Water Resources Board. 
 
b. 
The following provisions are hereby amended accordingly: 


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


 
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All other laws, presidential decrees, executive orders, presidential proclamations, 
rules and regulations, or parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed or amended accordingly. 
 
SEC. 46. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,