Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by Representative Ryan S. Recto 
EXPLANATORY NOTE 
This legislative measure aims to establish a comprehensive national 
framework for water resource management. The proposed bill shall reorganize the 
sector to ensure that a more uniﬁed, integrated and science-based approach is 
practiced in water governance. It will do so by creating two bodies: the Department of 
Water Resources (DWR) and the Water Regulatory Commission (WRC).  
According to the World Bank Organization, water scarcity affects more than 
40% of the global population and water-related disasters account for 70% of all deaths 
related to natural disasters. Estimates also show that given today’s environmental 
climate and practices, the world may face a 40% shortfall in forecast demand and 
available water supply by 2030. With this context in mind, it becomes even more 
imperative for nations across the globe to prepare proactively for these looming water 
crises. 
The Philippines frequently grapples with extreme natural disasters, especially 
during the typhoon season. It leads to excessive ﬂooding that displaces many 
communities and damages infrastructure, which costs billions of pesos annually. This 
severely hinders national development and pushes citizens further into poverty. An 
uncoordinated system for water management exacerbates these vulnerabilities, thus 
making it diﬃcult to implement effective and sustainable ﬂood control measures, 
integrate stormwater management and protect communities from water-induced 
hazards. 
On the other hand, ineﬃcient water management also severely hinders 
agricultural productivity, which is a vital aspect of food security. This particular sector 
relies on eﬃcient water allocation and management for irrigation. If there is a 
presence of ineﬃcient water usage (outdated irrigation systems, inadequate 
infrastructure, etc), it directly translates to wasted resources, reduced crop yields and 
ﬁnancial losses for our farmers.  
July 23, 2025
2:15 pm
2216


If our country seeks to achieve universal access to safe and sustainable water 
supply and improved sanitation service by 2030, there is an obvious need to create a 
dedicated and centralized authority that can effectively manage this valuable 
resource.   
Given this, it is therefore high time to create two bodies responsible in the 
overall management of water resources in the country. Through the DWR and the WRC, 
our country can ﬁnally possess a primary body responsible for ensuring the 
sustainable management of water. Establishing the DWR and the WRC is a vital step 
towards safeguarding the future of our nation’s precious resources and ensure water 
security for all. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
    Ryan S. Recto 
    Representative 
      6th District, Batangas 


1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by Representative Ryan S. Recto 
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 APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "National Water 
1 
Resources Act". 
2 
3 
SEC. 2. Declaration of Policy. – Access to water is a basic human right. All water 
4 
belongs to the State, which shall govern its development and utilization for the people. 
5 
It is hereby declared the policy of the State to ensure the provision of safe, adequate, 
6 
affordable and sustainable water supply and improved sanitation services, while 
7 
maintaining the protection, preservation and revival of the quality of the country’s 
8 
water resources and ecological balance. 
9 
10 
In pursuit of this policy, this Act shall have the principal objective of ensuring 
11 
and accelerating universal access to water supply and sanitation services, in a 
12 
regulatory regime that encourages responsible private sector participation and shall 
13 
foster and prioritize the establishment of infrastructure and public works that adopt 
14 
innovative solutions and international best practices to address the challenges of 
15 
climate change. Further, all water and water treatment infrastructure projects are 
16 
hereby declared as projects imbued with national interest. 
17 
18 
19 
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2 
 
1 
SEC. 3. Definition of Terms. – For the purpose of this Act, the terms: 
2 
 
3 
a. Bulk Water refers to any entity, natural or juridical, whether public or private, 
4 
supplying or intending to supply large quantities of raw or treated water to 
5 
buyers for their own consumption, such as industrial companies, or for retail 
6 
distribution to consumers such as water service providers or real estate 
7 
developers managing their own distribution network; 
8 
 
9 
b. Environmental services refer to qualitative functions of natural non-
10 
produced assets of land, water, and air, including related ecosystems, and 
11 
their biota, and which may be categorized into three basic types: (a) 
12 
disposal services which reflect the functions of the natural environment as 
13 
an absorptive sink for residuals; (b) productive services which reflect the 
14 
economic functions of providing natural resource inputs and space for 
15 
production and consumption, and (c) consumer or consumption services 
16 
which provide for physiological as well as recreational and related needs of 
17 
human beings; 
18 
 
19 
c. Flood Control refers to methods, acts, and protocols to be observed in order 
20 
to prevent and reduce the detrimental and catastrophic effects of flood 
21 
waters, which include sediment-laden or turbid flows, and hyper-
22 
concentrated flows or debris flows; 
23 
 
24 
d. Flood Risk Management (FRM) refers to acts of defining and determining the 
25 
appropriate methods, acts, and protocols aimed at preventing and reducing 
26 
the risk of loss of both life and property due to flood waters. Flood risk 
27 
management consists of a cycle of prevention, mitigation, adaptation, 
28 
preparedness and early warning, and response and recovery. The elements 
29 
of FRM include: integrating land-use planning and coastal zone 
30 
management into water management; adopting a holistic approach so that 
31 
FRM is part of wider risk or multi-hazard management of earthquakes, 
32 
landslides, droughts, and storm surges; managing risk and uncertainty as a 
33 
whole so it not only mitigates hydrological uncertainties but also social, 
34 
economic and political uncertainties on account of human behavior and the 
35 
cultural dimensions of FRM; 
36 
 
37 
e. Gender Equality refers to the principle asserting the equality of men and 
38 
women and their right to enjoy equal conditions realizing their full human 
39 
potentials to contribute to and benefit from the results of development, and 
40 
with the State recognizing that all human beings are free and equal in dignity 
41 
and rights. 
42 


 
3 
 
1 
f. Infrastructure and public works refer only to wholly or primarily water-related 
2 
projects and does not include projects that do not fall within the purview of 
3 
the objectives, power and duties of the Department of Water Resources 
4 
created under this Act; 
5 
 
6 
g. Integrated Water Resource Management (IWRM) refers to a systematic, 
7 
collaborative, and multi-stakeholder process that promotes the coordinated 
8 
development and management of water, land, and related resources within 
9 
geophysical boundaries in order to maximize the resultant economic and 
10 
social welfare in an equitable manner, and without compromising the 
11 
sustainability of vital ecosystems; 
12 
 
13 
h. License refers to the Water Supply or Sanitation Services Operating License 
14 
that the Water Regulatory Commission is authorized to grant and issue to 
15 
service providers;  
16 
 
17 
i. Licensee refers to a service provider to whom a license is granted or issued 
18 
by the Water Regulatory Commission; 
19 
 
20 
j. Missionary Water Services refer to water supply or services to areas that 
21 
have no existing safe water supply and services due to geographic limitation 
22 
or absence of economic and market viability; 
23 
 
24 
k. National Water Resources Management Plan (NWRMP) refers to a policy 
25 
document that contains a framework to guide the development and 
26 
management of all the water resources in the Philippines, the general 
27 
strategies and work to be pursued to ensure the sustainability of the 
28 
resource towards water security, and top-level direction on the utilization of 
29 
existing water resources in line with national development plans, policies, 
30 
and programs in accordance with the IWRM framework. The NWRMP shall 
31 
also include a water infrastructure development program or all waters of the 
32 
country as well as provide general guidance on how this shall be supported 
33 
within an integrated financing framework that can draw from public, private, 
34 
and international development funding sources; 
35 
 
36 
l. Net Waste Load refers to the difference of the initial waste load of the 
37 
abstracted water and the waste load of the final effluent discharge of an 
38 
industry;  
39 
 
40 
m. River basin refers to an area of land drained by a stream or body of fixed 
41 
water and its tributaries which have a common outlet for surface run-off; 
42 
 
43 


 
4 
n. River Basin Organization (RBO) refers to a multi-stakeholder organizations 
1 
which plan, coordinate, and monitor activities within a river basin cluster; 
2 
o. Sanitation refers to the provision of facilities and services for the safe 
3 
management of human excreta and wastewater, from collection to 
4 
containment, and storage and treatment onsite or conveyance, treatment 
5 
and eventual safe end use or disposal, and includes the safe management 
6 
of solid waste and animal waste; 
7 
 
8 
p. Sediment management refers to the control of sediment erosion and 
9 
deposition in rivers, reservoirs, and coastal zones through non-structural 
10 
and structural measures and control works; 
11 
 
12 
q. Sustainable Development Goals (SDGs) also known as the 17 Global Goals 
13 
refer to the universal call to action to end poverty, protect the planet and 
14 
ensure that all people enjoy peace and prosperity by 2030 adopted by 
15 
Member States of the United Nations in 2015; 
16 
 
17 
r. Septage refers to the liquid and solid material pumped from a septic tank, 
18 
cesspool or other primary treatment source; 
19 
 
20 
s. Septage Management refers to the provision of proper collection, treatment 
21 
and disposal of septage; 
22 
 
23 
t. Service Area refers to the area covered by the water distribution system, 
24 
sewerage or septage or septage management services; 
25 
 
26 
u. Sewage refers to water borne human or animal wastes, excluding oil or oil 
27 
waste, removed from residences, buildings, institutions and industrial and 
28 
commercial establishments together with such groundwater, surface water 
29 
and storm water as may be present including such waste from vessels, 
30 
offshore structures, other receptacles intended to receive or retain waste or 
31 
other places or the combination thereof; 
32 
 
33 
v. Sewerage refers to any system or network of pipelines, ditches, channels or 
34 
conduits, including pumping stations, lift stations and force mains, service 
35 
connections, including other infrastructure, devices or appliances 
36 
appurtenant thereto, which include the collection, transport, pumping and 
37 
treatment of sewage to a point of disposal; 
38 
 
39 
w. Sewers refer to pipes or such other works or structures which are built and 
40 
constructed to carry, transport and dispose sewage; 
41 
 
42 


 
5 
x. Social Inclusion refers to the process of improving the terms for 
1 
marginalized and disadvantaged individuals, indigenous peoples and 
2 
similar groups to take part in society; 
3 
 
4 
y. Tariffs refer to amounts which may be charged by licensees for their water 
5 
supply and sanitation services based on principles, standards and 
6 
guidelines established by the Water Regulatory Commission; 
7 
 
8 
z. Water Demand Management refers to any method, whether technical, 
9 
economic, administrative, financial, or social, that will accomplish one or 
10 
more of the following: 
11 
 
12 
1. Reduce the quantity and quality of water required to accomplish a 
13 
specific task; 
14 
 
15 
2. Adjust the nature of the task or the way it is undertaken so that it can 
16 
be accomplished with less water or with lower quality water; 
17 
 
18 
3. Reduce the loss in quantity or quality of water as it flows from source, 
19 
through use, to disposal; 
20 
 
21 
4. Shift the timing of use from peak to off-peak periods; and 
22 
 
23 
5. Increase the ability of the water system to continue to serve society 
24 
during times when water is in short supply. 
25 
 
26 
aa. Water Districts refer to government-owned and controlled corporations, 
27 
organized under Presidential Decree (PD) No. 198, as amended, or the Local 
28 
Water Utilities Administration Law, created primarily to acquire, install, 
29 
operate, maintain, and improve water supply and distribution systems for 
30 
domestic, industrial and municipal uses of residents and to provide, 
31 
maintain and operate waste water collection, treatment and disposal 
32 
facilities within the boundaries of the district; 
33 
 
34 
bb. Water pollution refers to any alteration of the physical, chemical, biological, 
35 
or radiological properties of a body of water resulting in the impairment of 
36 
its purity or quality; 
37 
 
38 
cc. Water Resource refers to water under the ground or groundwater, water 
39 
above the ground such as surface water, run-offs, floods, storm water and 
40 
urban drainage, treated wastewater, water in the atmosphere or rain water, 
41 
and the waters of the sea within the territorial jurisdiction of the Philippines; 
42 


 
6 
 
1 
dd. Water resource allocation is the process of sharing the limited water 
2 
resources between competing users. This consists of (i) determining water 
3 
availability, and (ii) determining how the water should be shared among 
4 
competing users. For the purposes of this Act, resource allocation shall also 
5 
mean water resources allocation. 
6 
 
7 
ee. Water Resources Regions refer to the contiguous clusters of river basins 
8 
which are grouped together according to the hydrological boundaries, 
9 
physiographic features, and homogeneity in climate, whether or not they 
10 
straddle different local government units, for administrative purposes under 
11 
the Department of Water Resources; 
12 
 
13 
ff. Water Service Provider (WSP) refers to the water district, any local 
14 
government unit (LGU)-run water utility, Barangay Waterworks and 
15 
Sanitation 
Association, 
Rural 
Waterworks 
Sanitation 
Association, 
16 
cooperatives engaged in water service provision, or a private sector entity 
17 
that provides water supply services to any given area; 
18 
 
19 
gg. Water supply service refers to any activity comprising Levels I, II and III water 
20 
supply, including bulk suppliers, suppliers to subdivisions, and other water 
21 
service providers (WSPs). 
22 
 
23 
CHAPTER II 
24 
THE DEPARTMENT OF WATER RESOURCES 
25 
 
26 
SEC. 4. The Department of Water Resources. – There is hereby created and 
27 
established the Department of Water Resources, hereinafter referred to as the 
28 
Department. 
29 
 
30 
 
SEC. 5. Mandate of the Department. – The Department shall be the primary 
31 
agency responsible for the comprehensive and integrated identification and mapping 
32 
of all water resources, planning, policy formulation, and management of the 
33 
ownership, appropriation, utilization, exploitation, development, and protection of 
34 
water resources in the Philippines to ensure the optimal use thereof for domestic and 
35 
municipal water supply, sanitation, irrigation, hydropower, industry, navigation, flood 
36 
management, and recreation, and water utilization aspects of fisheries or aquaculture. 
37 
 
38 
The Department shall also be the primary agency responsible for the planning 
39 
and policy formulation towards the attainment of universal access to safe, adequate, 
40 
affordable, and sustainable water supply, and improved sanitation services for all 
41 
Filipinos. 
42 
 
43 


 
7 
The Department shall be the primary national agency to enforce PD 1067, 
1 
otherwise known as The Water Code of the Philippines. 
2 
 
3 
In the implementation of Republic Act (RA) No. 9275, otherwise known as the 
4 
Philippine Clean Water Act of 2004, the Department shall be responsible for preparing, 
5 
formulating and implementing a five-year plan of action for a national and a regional 
6 
septage management plan, which shall contain measures for the construction of 
7 
wastewater treatment facilities and provision, installation, operation and maintenance 
8 
and, where practicable, the integration of sewerage, septage management, storm 
9 
water management and other sanitation facilities. Compliance with the mandate to 
10 
implement septage management services and systems by any WSP pursuant to the 
11 
Philippine Clean Water Act of 2004 shall be reckoned within five (5) years from the 
12 
date of promulgation or publication of the septage management plan formulated by 
13 
the Department. 
14 
 
15 
SEC. 6. Guiding Principles. – In the pursuit of its mandate, the Department shall 
16 
be guided by the following key principles: 
17 
 
18 
a. The concept of good water governance for water security and sufficiency 
19 
shall be adopted across all levels of governance by stakeholders such as 
20 
the national government, local government units (LGUs), non-government 
21 
organizations, private organizations, individuals, global societal actors, and 
22 
in various sectors such as water supply, irrigation, fisheries, hydropower, 
23 
navigation, ecosystem services, climate change, and recreation. It shall 
24 
entail publicly transparent, socially accountable, and multi-stakeholder 
25 
participatory water policy planning, management, and decision-making 
26 
processes; 
27 
 
28 
b. Access to safe water supply and improved sanitation is a human right that 
29 
needs to be fulfilled and protected; 
30 
 
31 
c. Integrated Water Resource Management (IWRM) shall be adopted as the 
32 
basic framework which is the coordinated development and management 
33 
of water, land, and related resources within hydrological boundaries to 
34 
optimize economic and social welfare without compromising the 
35 
sustainability of vital ecosystems. The IWRM Framework shall include an 
36 
enabling environment that utilizes proper policies, legal instruments, and 
37 
institutional frameworks for effective implementation, participatory and 
38 
collaborative water policy and management decisions, and management 
39 
instruments for efficient use of updated and accurate data, science-based 
40 
decision support systems, proper information, education, communication 
41 
programs, assessment and allocation tools, or regulatory functions. It shall 
42 
observe the mutual accountability mechanism among stakeholders at the 
43 
national, regional, and global levels reinforcing multi-stakeholder decision-
44 


 
8 
making following a framework with specific, measurable, attainable, 
1 
relevant, and timely actions; 
2 
 
3 
d. Each river basin has its unique characteristics relating to the physical, 
4 
sociocultural, and other aspects, and water management shall be 
5 
performed at river-basin level, involving all the stakeholders at that 
6 
particular river basin; 
7 
e. Integrated and accurate data collection and analysis and the use of 
8 
scientific decision support systems shall be undertaken in water resources 
9 
management including flood modeling and warning systems that are 
10 
essential for an effective, efficient, and sustainable water resources 
11 
management system; 
12 
 
13 
f. 
The State shall prioritize the development of surface water to ensure 
14 
adequate and reliable supply of water: Provided, That the development of 
15 
water resources shall include strategies for the mitigation of water-related 
16 
hazards and climate change adaptation; 
17 
 
18 
g. Water resources shall be fairly and sustainably managed, and water 
19 
services shall be provided where they are intended and most needed; 
20 
 
21 
h. The proper operation and maintenance of waterworks systems resulting in 
22 
the uninterrupted and adequate supply and distribution of potable water for 
23 
domestic and other purposes, and the proper operation and maintenance 
24 
of sewerage systems, which are essential services to public health and 
25 
safety, are to be ensured at all times; and 
26 
 
27 
i. 
The State recognizes the role of the private sector and mobilization of 
28 
private resources in the development of waterworks systems through 
29 
concession agreements, joint venture agreements, bulk water supply 
30 
agreements, management and service agreements and other contracts for 
31 
water supply provision, water sanitation and treatment services, and the 
32 
development, operation and maintenance of water supply and septage 
33 
management systems. The State shall encourage the private sector to 
34 
provide the needed investments for programs and projects to ensure 
35 
adequate water supply and promote water security. 
36 
 
37 
SEC. 7. Objectives of the Department. – The Department shall: 
38 
 
39 
a. Promote and adopt water demand management as a national policy to 
40 
ensure that water is optimized, that water efficiency and conservation 
41 
become a way of life, that the recycling and reuse of water and treated 
42 


 
9 
wastewater are widely practiced, that water is properly priced to encourage 
1 
efficient use and conservation, and that rainwater, flood waters, and run-
2 
offs are captured or harvested, stored and treated for future use; 
3 
 
4 
b. Prioritize and seek the immediate attainment of universal access to safe, 
5 
adequate, affordable and sustainable water supply and improved sanitation 
6 
services for all Filipinos, either through public programs and projects or 
7 
public-private partnership or other mechanisms, in a manner consistent 
8 
with the protection, preservation, and revival of the quality of the country’s 
9 
water resources, and to adopt all needed measures to advance the right of 
10 
the people to a balanced and healthful ecology in accord with the rhythm 
11 
and harmony of nature: Provided, That the Department shall pursue 
12 
universal access to clean water by 2030; 
13 
 
14 
c. Strengthen and coordinate integrated water resources management 
15 
planning and policy making to ensure sustainable and fair allocation and 
16 
efficient use of water resources among competing uses and users; 
17 
 
18 
d. Ensure that integrated water resources management is strongly 
19 
coordinated with land use and coastal and multi-hazard planning and 
20 
management; 
21 
 
22 
e. Develop sustainably, and manage water sources and water resources 
23 
toward water security, taking into consideration water, land, and related 
24 
resources aimed at increasing water dependability for different uses, 
25 
optimizing economic benefits and social welfare without compromising 
26 
the sustainability of vital environmental systems; 
27 
 
28 
f. 
Strengthen and coordinate policy making and planning towards ensuring 
29 
the availability of water for food security and energy security, as well as 
30 
towards the protection of communities and environments against flood 
31 
and other water-induced hazards, including sediment hazards;  
32 
 
33 
g. Ensure that the strategy for water resources development and conservation 
34 
is participatory, and that planners, policymakers, and other stakeholders, 
35 
including water users, community members, indigenous and marginalized 
36 
peoples, are involved at all levels; 
37 
 
38 
h. Develop a standardized pricing framework for water use, septage and 
39 
sewerage services that accounts for environmental externalities and 
40 
pricing considerations such as a reasonable rate of return; rate adjustment 
41 
mechanisms for consumer price indices and currency fluctuations; and 
42 


 
10 
other factors relevant to the operation of waterworks systems and 
1 
infrastructure; 
2 
 
3 
i. 
Ensure that all sources of water, including surface water, groundwater, 
4 
rainwater and floodwater are identified, mapped, monitored, conserved and 
5 
managed for productive use and the resulting wastewater is managed 
6 
properly, reused, and responsibly disposed of following approved 
7 
environmental standards; and 
8 
j. 
Prioritize and provide technical and financial assistance to fourth, fifth and 
9 
sixth class municipalities in the Philippines in the development of water 
10 
resources and waterworks systems and provision of water and sanitation 
11 
services. 
12 
 
13 
SEC. 8. Powers and Functions of the Department. – The Department shall have 
14 
the following powers and functions: 
15 
 
16 
a. Policymaking and Planning 
17 
 
18 
1. Ensure that Integrated Water Resources Management (IWRM) is 
19 
adopted as the strategic framework for water management 
20 
policymaking and planning in the country and coordinate the 
21 
implementation, promotion, revision and enhancement of IWRM plans; 
22 
 
23 
2. Formulate policies, strategies, and targets in coordination with other 
24 
relevant entities to meet the goals and objectives for water supply and 
25 
sanitation, water quality, irrigation, hydropower, flood control, storm 
26 
water utilization, and urban drainage. Such policies shall, among other 
27 
guidelines, integrate the issues of water and sanitation, food security, 
28 
energy, environment and flood control, and climate change; 
29 
 
30 
3. Formulate and develop policies to promote universal access to safe, 
31 
adequate, affordable, and sustainable water supply, and improved 
32 
sanitation services for all Filipinos; 
33 
 
34 
4. Prepare the NWRMP in consultation with other agencies and 
35 
stakeholders, following the IWRM framework and integrating therein a 
36 
national land use plan, submit the NWRMP to the National Economic 
37 
and Development Authority (NEDA) Board for approval and eventual 
38 
adoption, and regularly update, every five years or as deemed 
39 
necessary by the Department, in order to ensure its relevance to the 
40 
times; 
41 
 
42 


 
11 
5. Undertake river basin survey, inventory and appraisal of water and 
1 
related resources, and develop comprehensive basin-wide plans of 
2 
storage, retardation, and control to maximize conservation and 
3 
multipurpose use of water in the basin; 
4 
 
5 
6. Conduct continuing hydrological and hydrometeorological surveys and 
6 
studies of the country’s renewable water supply, and establish, operate, 
7 
and maintain observation station networks; 
8 
7. Formulate long-term policies to balance the sustainability and optimal 
9 
multiple use of water resources, define the hydrologic boundaries of 
10 
basins of the existing water supply sources, and develop or update 
11 
existing River Basin Master or Comprehensive Plans which includes all 
12 
aspects of water management and development such as water supply 
13 
and sanitation, irrigation, flood control and storm water or urban 
14 
drainage, drought risk management, water resource development 
15 
systems and other public water works projects, including phasing of 
16 
implementation; 
17 
 
18 
8. Identify, based on the river basin master plans, priority packages for 
19 
water infrastructure development per river basin, including water 
20 
supply, sanitation, irrigation, hydropower, flood control and storm water 
21 
or urban drainage, drought risk management, water resource 
22 
development systems and other public works projects; 
23 
 
24 
9. Evaluate and appraise all regional and inter-regional infrastructure 
25 
water development plans and programs as to their feasibility and 
26 
consistency with approved strategies and medium and long-term 
27 
plans; 
28 
 
29 
10. Formulate policy, strategies, master plans and programs on flood risk 
30 
management in the context of integrated flood management (IFM), 
31 
which integrates water, land, coastal zone and multi-hazard 
32 
management. In integrating land use planning and water management, 
33 
the Department shall harmonize and synthesize plans to enable the 
34 
sharing of information between land-use planning and water 
35 
management authorities. In this regard, a holistic approach shall be 
36 
adopted by making the IFM a part of a wider risk or multi-hazard 
37 
management system that includes earthquakes, landslides, fires, 
38 
tsunamis, droughts, and other calamities of the same gravity or nature; 
39 
 
40 
11. Strengthen and coordinate policy making and planning for flood 
41 
management, integrated with storm water or urban drainage and 
42 


 
12 
appropriate retention or retarding basins in order to harvest and reuse 
1 
water, and to plan against, prevent, and minimize the detrimental and 
2 
catastrophic effects of flooding; 
3 
 
4 
12. Assist and provide the NEDA with the required data and input from the 
5 
water sector in the formulation of the country’s short-term and long-
6 
term strategic development plans and actions, and recommend to the 
7 
NEDA Board the adoption of general policies and guidelines for water 
8 
resources development; 
9 
13. Review, approve, and provide oversight over all water-related 
10 
development plans, programs, and projects of any agency within the 
11 
context of the NWRMP, and overall national plans and programs; 
12 
 
13 
14. Develop and implement, in coordination with other relevant agencies, 
14 
effective codes, standards, benchmarks, and reasonable guidelines on 
15 
project investigation, formulation and planning of water resources 
16 
infrastructure, to ensure the safety of all public and private water 
17 
structures in the country, and assure efficiency and proper quality in the 
18 
construction of water, sanitation, irrigation, hydropower, flood control 
19 
and drainage infrastructure; 
20 
 
21 
15. Ensure that gender equality, social inclusion, environmental protection, 
22 
climate resiliency, disaster risk reduction, and indigenous knowledge 
23 
systems and practices are integrated into any water resource 
24 
management planning, policy making, and the design and construction 
25 
of water infrastructure; 
26 
 
27 
16. Ensure that the planning of water infrastructure considers the highest 
28 
efficiency and most appropriate technology and quality, in accordance 
29 
with national development objectives; 
30 
 
31 
17. Review existing guidelines appropriate for private sector participation 
32 
in the water sector and submit recommendations to the Public-Private 
33 
Partnership (PPP) Center of NEDA and other concerned agencies to 
34 
promote and enable more PPPs in the sector; 
35 
 
36 
18. Gather, analyze, and organize needed statistical data and information; 
37 
for those water-related data generated by other concerned agencies, 
38 
establish, in coordination with these agencies, the guidelines, 
39 
standards, methodologies, and protocols for data collection that will be 
40 
officially recognized by the Department, and institute mechanisms for 
41 


 
13 
coordination with other agencies as regards their submission and 
1 
certification of submitted water-related data to the Department; 
2 
 
3 
19. In case of gaps in data collection by other agencies, under item (r) 
4 
above, the Department may collect the said data in accordance with the 
5 
established guidelines, standards, methodologies and protocols, and in 
6 
coordination with the respective agencies: Provided, That both the 
7 
Department and other agencies ensure that duplication of roles in data 
8 
collection is prevented; Ensure continued stakeholder engagement 
9 
through the creation of a Multi-Sectoral Stakeholder Council with 
10 
representatives from all water sector, including vulnerable and 
11 
indigenous communities: Provided, That the Multi-Sectoral Stakeholder 
12 
Council shall be the primary avenue for all multi-sectoral consultations 
13 
mandated under this Act, and shall be consulted in the formulation of 
14 
all national plans, programs, and policies of the Department: Provided, 
15 
further, That the sectoral representatives shall be appointed by the 
16 
President of the Philippines, hereinafter referred to as the President; 
17 
 
18 
20. Build a central repository of water data and effect inter-sectoral, inter-
19 
agency, and inter-departmental coordination on all aspects of data 
20 
gathering and management for water resources development planning 
21 
and compel the submission of statistics and data on water utilization 
22 
with the aim of operationalizing the integrated approach to water 
23 
resources management; 
24 
 
25 
21. Ensure the effective implementation of all the provisions of PD 1067; 
26 
 
27 
22. Promote Philippine participation in information sharing and education 
28 
on best practices in support of international efforts to achieve universal 
29 
access to safe water and improved sanitation; and the integration of 
30 
water, energy, environment and food security; 
31 
 
32 
23. Ensure that the easements provided for in Title VII, Chapter 2, Section 
33 
2 of RA 386, otherwise known as the Civil Code of the Philippines and 
34 
other relevant laws are enforced, especially in all the esteros and 
35 
waterways, as well as abate the dumping of untreated wastewater and 
36 
sewage into water bodies, including all acts and omissions in violation 
37 
of PD 984, also known as National Pollution Control Decree of 1976, as 
38 
amended, and other related laws; and 
39 
 
40 


 
14 
24. Issue and promulgate rules, regulations and guidelines as may be 
1 
necessary to implement and enforce its powers and functions under 
2 
this Act. 
3 
 
4 
b. 
Resource Allocation and Regulation 
5 
 
6 
1. Manage and conserve the country’s water resources to ensure the 
7 
optimal use thereof for domestic water supply, sanitation, irrigation, 
8 
hydropower, navigation, flood control, and recreation purposes, and 
9 
enhance and maintain water quality, conserve watersheds, control 
10 
water pollution, and restore the environment, without compromising 
11 
the natural ecosystem functions and services; 
12 
 
13 
2. Regulate and control the utilization, abstraction, diversion and 
14 
development of water resources, taking in consideration their equitable 
15 
distribution among competing demands and determine the standards 
16 
of beneficial and priority uses of water in times of crisis and national 
17 
emergencies; 
18 
 
19 
3. Formulate, promulgate, and enforce rules and regulations for the 
20 
development and optimum use of water resources and its 
21 
administration and management, including coherent water protocols, 
22 
operating rules of all existing and future water infrastructure; general 
23 
criteria, methods and standards for basic data collection and project 
24 
identification, formulation and planning, and appropriate sanctions to 
25 
be imposed for noncompliance; 
26 
 
27 
4. Regularly review regulations prescribed by any government agency 
28 
pertaining to water use, exploitation, development, and conservation or 
29 
protection of waters, water resources, and watershed or basin areas 
30 
with respect to this Act; 
31 
 
32 
5. Impose fees or charges, as may be deemed necessary for water 
33 
resources development, conservation and protection, such as: 
34 
 
35 
i. Polluter’s Fee, which shall be based on the net waste load 
36 
depending on the wastewater charge formula pursuant to Section 
37 
13 of Republic Act No. 9275: Provided, That the implementation 
38 
of this shall be transferred from the Department of Environment 
39 
and Natural Resources to the Department of Water Resources; 
40 
 
41 


 
15 
ii. Raw water price, which shall take into account, among others, the 
1 
scarcity of water; and 
2 
 
3 
iii. Appropriate payment structures for ecosystem services, which 
4 
shall not exceed five centavos (P0.05) per cubic meter of water 
5 
consumption; 
6 
 
7 
6. Deputize LGUs to collect the national fees or charges for resource 
8 
regulation within their respective jurisdiction; 
9 
 
10 
7. Collect, regularly update, monitor, and analyze water resources data, 
11 
including climatology, hydrological and other water-related data and 
12 
ensure that such data is easily accessible by relevant and authorized 
13 
users; 
14 
8. Establish, operate, and maintain observation station networks and a 
15 
centralized water resources data center for the scientific survey and 
16 
appraisal of surface and groundwater potentials of the country, and 
17 
determine the annual renewable water available per water resources 
18 
region; 
19 
 
20 
9. Maintain a database that will contain updated relevant information on 
21 
water data, which will be accessible by relevant and authorized users; 
22 
 
23 
10. Develop and continuously update a computerized decision support 
24 
system that incorporates data management systems relating to 
25 
acquisition and database, model-based in terms of physical design, 
26 
planning and decision models, and a user-friendly interface concerning 
27 
graphical and visualization tools; 
28 
 
29 
11. Conduct and promote special studies and research on water 
30 
economics and other aspects of water resources development and 
31 
management as may be needed to support the policy and plan 
32 
proposals of the Department, such as, but not limited to, impacts of 
33 
climate change, weather modification, flood monitoring and modeling, 
34 
environmental quality, and desalination; 
35 
 
36 
12. Raise public awareness through information, 
education and 
37 
communications programs, and build capacities for informed 
38 
participation in water resources management at the national and river-
39 
basin level; and 
40 
 
41 


 
16 
13. Review the status of water permits issued and outstanding as of the 
1 
date of the effectivity of this Act and compliance by the water permit 
2 
holders with the terms of their respective water permits. 
3 
 
4 
If, in the determination of the Department, acting on the basis of 
5 
information, records and reports submitted by any holders of such 
6 
water permits, there is non-use of the water resource covered by such 
7 
water permits for a period of one (1) year from the date of issuance 
8 
thereof, the Department shall cause the termination or cancellation of 
9 
any such water permits to the National Water Resources Allocation 
10 
Board: Provided, That the review made by the Department shall be 
11 
considered prima facie evidence of non-use in respect of any affected 
12 
water permit. For purposes of this Section, “non-use” refers to the 
13 
failure of the water permit holder to utilize the water resource or 
14 
construct substantial works, facilities, systems or other infrastructure 
15 
had been constructed in pursuit of or for the purpose stipulated in the 
16 
water permit. 
17 
 
18 
The Department shall submit a report to Congress on the completion 
19 
of its review under this section within one (1) year from the effectivity 
20 
of this Act. 
21 
 
22 
c. 
Institutional Arrangement with Public Water Agencies and Organizations 
23 
 
24 
1. Develop guidelines including rules of partnership, between and among 
25 
the Department, field offices of national government agencies, LGUs 
26 
and other stakeholders in water resource management, and facilitate 
27 
the establishment of multi-stakeholder river basin organizations 
28 
(RBOs) per river basin, and strengthen and support existing RBOs and 
29 
monitor their activities; 
30 
 
31 
2. Coordinate the planned and ongoing river basin initiatives of 
32 
government agencies and corporations, to which the Department shall 
33 
review and endorse approval and funding from the national budget 
34 
thereof, as may be provided under existing laws, rules and regulations; 
35 
 
36 
3. Harmonize all relevant national river basin policies and formulate new 
37 
policies and create an enabling policy environment that shall allow 
38 
effective and efficient management and governance of the country’s 
39 
river basins. To this end, all concerned national government agencies 
40 
and corporations shall consult the Department in such planning and 
41 
implementation; 
42 


 
17 
 
1 
4. Serve as the national policy coordination office for LGUs and non-
2 
governmental organizations in the development and sustainability of 
3 
all river and catchment basins, for which the Department shall 
4 
recommend the approval and funding thereof of national government 
5 
agencies and corporations support to such local and nongovernment 
6 
river and catchment basin initiatives;  
7 
 
8 
5. Serve as the government’s central river basin database management 
9 
agency, to which all government agencies and existing river basin 
10 
organizations with relevant mandates and developmental initiatives 
11 
within the river basins are required to cooperate and regularly submit 
12 
their updated databases for integration and consolidation; 
13 
 
14 
6. Develop materials for capacity building and training of prospective 
15 
RBOs, as well as other concerned units of the Department and other 
16 
water-related agencies, LGUs, and WSPs particularly in the areas of 
17 
integrated water resources management and river basin master 
18 
planning; 
19 
 
20 
7. Authorize its representatives or any deputized agent to enter any 
21 
property of public dominion with prior notice and consent: and any 
22 
private land, building or enclave, whether inhabited or not, for the 
23 
purpose of conducting hydrologic surveys and investigations, including 
24 
assessing and evaluating the conditions of water facilities installed, 
25 
and determining compliance with water laws and standards; 
26 
 
27 
8. Provide technical assistance to water users, including farmers, 
28 
communities, and LGUs and other WSP, whether directly or in 
29 
coordination with other agencies on all aspects of integrated water 
30 
resources management; 
31 
 
32 
9. Respond to consumer complaints, and ensure the adequate promotion 
33 
of consumer interests; and 
34 
 
35 
10. Deputize agents, whether from the public or private sector, to assist in 
36 
the performance of any of the powers and functions of the Department. 
37 
 
38 
d. 
Coordination 
39 
 
40 


 
18 
1. Coordinate and integrate water resources development activities of the 
1 
country within the context of national plans and policies for social and 
2 
economic development; 
3 
 
4 
2. Coordinate with other government agencies, universities, academe and 
5 
private professional groups in all aspects of data gathering, the 
6 
conduct of special studies and research on all related aspects of water 
7 
resources management and development such as climate change, 
8 
environmental quality, desalination, and the development of operating 
9 
strategies, 
procedures, 
and 
protocols 
and 
accompanying 
10 
computerized decision tools for major water facilities; 
11 
 
12 
3. Coordinate with the concerned and relevant agencies engaged in flood 
13 
control, flood risk management, and drought risk management; and 
14 
 
15 
4. Coordinate proactively with LGUs to ensure the integration of water 
16 
resources development plans into their comprehensive land use plans, 
17 
Comprehensive Development Plans or Provincial Physical Framework 
18 
and Development. 
19 
e. 
Other Functions 
20 
 
21 
1. Create when there are no existing water resources or operators, water 
22 
resource subsidiaries, instrumentalities, and entities to engage in water 
23 
source development, water supply, water transmission, water 
24 
distribution, waste water treatment and management, missionary 
25 
water access, storm water management, and sanitation in accordance 
26 
with existing laws, without prejudice to private entities capable of and 
27 
willing to engage in the aforementioned activities through concession 
28 
agreements, joint venture agreements, bulk water agreements, or 
29 
service agreements or contracts. For this purpose, the Department 
30 
shall ensure compliance with existing frameworks, rules, regulations 
31 
and guidelines for private sector participation in water transmission, 
32 
water distribution, waste water treatment and management, storm 
33 
water management, and sanitation; 
34 
 
35 
2. Enter into contracts, joint venture agreements or understanding, public-
36 
private 
partnerships, 
and 
memorandum 
of 
agreements 
or 
37 
understanding, either domestic or foreign, relating to investment and 
38 
financing water-related projects, under such terms and conditions as 
39 
the Department may deem proper and reasonable subject to existing 
40 
laws: Provided, That government entities with mandates to enter into 
41 
contracts with private entities under existing laws shall continue to 
42 


 
19 
have such authority: Provided, further, That nothing in this Act shall be 
1 
interpreted as adding approval, endorsement, or consent requirements 
2 
for water-related government projects; 
3 
 
4 
3. 
Appoint, hire, and maintain adequate staff and personnel, advisers or 
5 
consultants with suitable qualifications and experience, as necessary, 
6 
subject to existing rules and regulations; and 
7 
 
8 
4. 
Exercise such other powers and functions necessary or incidental to the 
9 
effective administration and management of the country’s water 
10 
resources. 
11 
 
12 
SEC. 9. Composition. – The Department shall be composed of the Office of the 
13 
Secretary, and the various bureaus and services, and regional offices. The Office of 
14 
the Secretary shall house the Office of the Department Secretary, the Offices of the 
15 
Undersecretaries, the Offices of the Assistant Secretaries, and their immediate 
16 
support staff. 
17 
 
18 
SEC. 10. Secretary of the Department of Water Resources. – The authority and 
19 
responsibility for the exercise of the mandate of the Department and for the discharge 
20 
of its powers and functions shall be vested in the Secretary of the Department, 
21 
hereinafter referred to as the Secretary of Water Resources, who shall be appointed 
22 
by the President. The Secretary of Water Resources shall: 
23 
 
24 
a. Submit to the NEDA Board the Department’s recommendations on policies on 
25 
water resources requiring presidential decision, and advise the President on the 
26 
promulgation of executive or administrative orders, regulations, proclamations 
27 
and other issuances relative to matters under the jurisdiction of the 
28 
Department; 
29 
 
30 
b. Establish the policies and standards for the operation of the Department 
31 
pursuant to the President’s guidelines; 
32 
 
33 
c. Advise the President on the status of water management and supply in the 
34 
country, recommend to the President the declaration of a state calamity in 
35 
areas affected by water supply, and submit proposals to restore normalcy in 
36 
the affected areas; 
37 
 
38 
d. Promulgate rules and regulations necessary to carry out the objectives, 
39 
policies, and functions of the Department; 
40 
 
41 


 
20 
e. Exercise supervision and control over all bureaus and offices under the 
1 
Department; 
2 
 
3 
f. Supervise all attached agencies and corporations in accordance with law; 
4 
 
5 
g. Represent the Department in contracts, awards, and other similar agreements; 
6 
 
7 
h. Delegate authority for the performance of any power or function, as defined 
8 
herein to officials and employees under his direction as deemed appropriate; 
9 
 
10 
i. Act as the Chairperson of the governing board of the attached agencies of the 
11 
Department; 
12 
 
13 
j. Designate and appoint officers and employees of the Department, excluding 
14 
the Undersecretaries, Assistant Secretaries, and Regional and Assistant 
15 
Regional Directors, in accordance with the civil service laws, rules and 
16 
regulations; 
17 
 
18 
k. Discipline the officials and employees of the Department, including officials 
19 
and employees of all the bureaus and offices under it, in accordance with civil 
20 
service laws, rules, and regulations; and 
21 
 
22 
l. Perform such other duties and responsibilities as may be provided by law. 
23 
 
24 
The Secretary of Water Resources shall also serve as a voting member of the 
25 
NEDA Board, the Governing Boards of the Climate Change Commission, the National 
26 
Disaster Risk Reduction and Management Council, and the National Land Use 
27 
Committee. 
28 
 
29 
SEC. 11. Undersecretaries and Assistant Secretaries. – The Secretary of Water 
30 
Resources shall be assisted by not more than three (3) Undersecretaries and three (3) 
31 
Assistant Secretaries, all of which shall be appointed by the President upon the 
32 
recommendation of the Secretary of Water Resources: Provided, That at least one (1) 
33 
Undersecretary and one (1) of the Assistant Secretaries shall be career officers. 
34 
 
35 
The Secretary of Water Resources is hereby authorized to delineate and assign the 
36 
respective functional areas of responsibility of the Undersecretaries and Assistant 
37 
Secretaries in accordance with the mandate and objectives of the Department. Within 
38 
their respective functional areas of responsibility, the Undersecretaries and Assistant 
39 
Secretaries shall have the powers and functions as provided for in Chapter 2, Book IV 
40 
of the Administrative Code of 1987. 
41 
 
42 


 
21 
SEC. 12. Qualifications and Appointment. – No person shall be appointed 
1 
Secretary, Undersecretary, and Assistant Secretary of the Department unless the 
2 
person is a citizen and resident of the Philippines, of good moral character, of proven 
3 
integrity, competence and expertise in water resource management. 
4 
 
5 
SEC. 13. Department Bureaus and Services, and Regional Offices. – The 
6 
Department shall establish, operate, and maintain the Bureaus and Services under it 
7 
such as, but not limited to: 
8 
 
9 
a. Policy and Planning Bureau; 
10 
 
11 
b. Decision Support System Bureau; 
12 
 
13 
c. Bureau of Technical Services; 
14 
 
15 
d. Legal and Legislative Research Service; 
16 
 
17 
e. Internal Audit Service;  
18 
 
19 
f. Public Affairs Service; 
20 
 
21 
g. Administrative and Human Resources Service; 
22 
 
23 
h. Flood Control and Drainage Coordination Service; 
24 
 
25 
i. Comptrollership and Financial Management Service; and 
26 
 
27 
j. Local Water Service Providers Bureau. 
28 
 
29 
A Water Resources Regional Office shall be organized per water resources 
30 
region and shall be responsible for implementing the mandates, powers, and duties of 
31 
the Department at the field level, except for policymaking, which will be vested solely 
32 
in the Department. 
33 
 
34 
The Bureaus, Services and Regional Offices shall each be headed by a Director, 
35 
who shall be responsible for the efficient and effective discharge of the functions of 
36 
the Bureau, Service, or Office concerned. The Bureau Director and Regional Director 
37 
shall be assisted by one (1) Assistant Director. 
38 
 
39 
The Department shall retain existing Project Management Offices as may be 
40 
required, which shall be under the supervision and control of the appropriate official 
41 
determined by the Secretary of Water Resources. 
42 


 
22 
 
1 
SEC. 14. Attached Agencies. – The following agencies shall be attached to the 
2 
Department for purposes of policy and program coordination, monitoring, and 
3 
evaluation: 
4 
 
5 
a. The Metropolitan Waterworks and Sewerage System (MWSS), whose 
6 
mandate, powers, and functions are defined under RA 6234, as amended 
7 
entitled, “An Act Creating the Metropolitan Waterworks and Sewerage 
8 
System and Dissolving the National Waterworks and Sewerage Authority, and 
9 
For Other Purposes,” shall be transferred from the DENR and attached to the 
10 
Department: Provided, That the MWSS shall continue to facilitate the exercise 
11 
by the concessionaires of their responsibility; carry out accounting and 
12 
notification functions; monitor, report, and administer loans; perform related 
13 
functions in connection with existing projects; manage, operate, and dispose 
14 
its retained assets: Provided, further, That its regulatory arm, the MWSS – 
15 
Regulatory Office, shall be fully absorbed by the Water Regulatory 
16 
Commission created under this Act; 
17 
 
18 
b. The National Irrigation Administration (NIA), whose mandate, powers, and 
19 
functions are defined under RA 3601 entitled “An Act Granting the National 
20 
Irrigation Administration,” as amended by PD 552 and PD 1702; and 
21 
 
22 
c. The Laguna Lake Development Authority (LLDA), whose mandate, powers 
23 
and functions are defined under RA 4850, as amended entitled “An Act 
24 
Creating the Laguna Lake Development Authority, Prescribing Its Powers, 
25 
Functions and Duties, Providing Funds Therefor, and For Other Purposes” 
26 
shall be transferred from the DENR and attached to the Department. The 
27 
LLDA shall continue to serve as the lake management and development 
28 
authority similar to a multi-stakeholder river basin organization and shall 
29 
ensure the implementation of the Laguna Lake Master Plan which shall be 
30 
updated by the Department to ensure alignment with the NWRMP. 
31 
 
32 
The Secretary of Water Resources shall be the Chairperson of the Governing 
33 
Boards 
of 
the 
aforementioned 
government-owned 
and 
controlled 
34 
corporations to be attached under the Department. In case existing laws, 
35 
rules and regulations provide for a specific process in appointing the 
36 
agency’s Chairperson, the Secretary of Water Resources shall serve as Co-
37 
Chairperson. 
38 
 
39 
Any other agency performing water resources management, conservation 
40 
and protection functions may be transferred to the Department as the 
41 
President deems necessary. 
42 


 
23 
 
1 
SEC. 15. Offices, Functions and Personnel to be Completely Subsumed Under the 
2 
Department. – The following offices with their applicable powers, functions, personnel, 
3 
funds and appropriations, records, equipment and property shall be subsumed under 
4 
the Department: 
5 
 
6 
a. The National Water Resources Board (NWRB) with its divisions and 
7 
sections, whose mandate, powers and functions are provided in PD 424 
8 
creating the National Water Resources Council, now NWRB, as amended: 
9 
Provided, That its water utility regulation units and functions vested under 
10 
Commonwealth Act No. 146, also known as the Public Service Act, as 
11 
amended, shall be absorbed by the Water Regulatory Commission created 
12 
under this Act: Provided, further, That its resource allocation or regulation 
13 
units vested under PD 1067 shall be absorbed by the National Water 
14 
Resources Allocation Board and the Resource Allocation Office, also 
15 
created under Section 18 of this Act; 
16 
 
17 
b. The Local Water Utilities Administration (LWUA) with its services, 
18 
departments and divisions, whose mandate, powers and functions are 
19 
provided for in Title Ill of Presidential Decree No. 198, as amended, 
20 
otherwise known as the “Local Water Utilities Administration Law”: 
21 
Provided, That its economic regulatory functions over local water districts 
22 
shall be fully absorbed by the Water Regulatory Commission created under 
23 
this Act. In the implementation of its functions, LWUA will be transformed 
24 
into the Local Water Service Providers Bureau (LWSPB) which shall: 
25 
1. furnish technical assistance and personnel training including training 
26 
programs for accounting and fiscal practices of local water service 
27 
providers; 
28 
 
29 
2. monitor and evaluate compliance with local water standards of water 
30 
service providers; and 
31 
 
32 
3. effect system integration, joint investment and operation, district 
33 
annexation and de-annexation whenever economically warranted, in 
34 
accordance with Section 50 of PD No. 198, as amended by Section 22, 
35 
PD No. 768. The authority of LWUA to review, approve and regulate the 
36 
tariff rates of local water utilities to whom it has extended loans or 
37 
other financing under Section 64 of PD No. 198, as amended, is hereby 
38 
transferred to the Water Regulatory Commission as provided in this 
39 
Act; 
40 
 
41 


 
24 
c. The River Basin Control Office (RBCO) of the DENR whose mandate, powers 
1 
and functions are provided in Executive Order (EO) No. 510, Series of 2006 
2 
and EO 816, Series of 2009, as amended: Provided, That its function 
3 
pertaining to watershed reforestation activities shall be transferred to the 
4 
DENR-Forest Management Bureau, but the targeting of priority watershed 
5 
areas shall be coordinated with the Department; 
6 
 
7 
d. The Manila Bay Coordinating Office of the DENR, which was strengthened 
8 
by virtue of DENR Administrative Order 2011-01 to coordinate the efforts of 
9 
the fourteen (14) national agencies covered by the Mandamus Order of the 
10 
Supreme Court to rehabilitate Manila Bay; 
11 
 
12 
e. The Water Supply and Sanitation Unit of the Department of the Interior and 
13 
Local Government (DILG); and 
14 
 
15 
f. The Water Resources Management Office of the DENR whose mandate, 
16 
powers and functions are provided in EO 22, series of 2023. 
17 
 
18 
SEC. 16. Functions to be Transferred to the Department. – The following 
19 
functions of the respective agencies, bureaus, and units shall be transferred to the 
20 
Department: 
21 
 
22 
a. The planning, programming, administration, monitoring, management of the 
23 
National Sewerage and Septage Management Program (NSSMP) of the 
24 
Department of Public Works and Highways (DPWH); and 
25 
b. The following functions of the dissolved Pasig River Rehabilitation 
26 
Commission and transferred to the Manila Bay Task Force per EO 93 Series 
27 
of 2019; 
28 
 
29 
c. Updating and leading in the overall implementation of the Pasig River 
30 
Rehabilitation Master Plan; and 
31 
 
32 
d. Ensuring that the easements provided for in the Civil Code and other 
33 
relevant laws are enforced, especially in all the esteros and waterways as 
34 
well as abating the dumping of untreated wastewater and sewage into 
35 
water systems, including all acts and omissions in violation of PD 984, as 
36 
amended, and other related laws. 
37 
 
38 
CHAPTER III 
39 
INTERDEPARTMENTAL RELATIONS 
40 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
41 
 
42 


 
25 
SEC. 17. Interface and Institutional Arrangements with Other Agencies. –  
1 
 
2 
a. The Department of Health (DOH) shall continue to have primary authority 
3 
and responsibility for setting and enforcing drinking water quality 
4 
standards. The Department shall coordinate with the DOH in this aspect, 
5 
and shall ensure consistency of standards and targets, as well as the 
6 
compliance of permittees with mandated standards; 
7 
 
8 
b. The DENR shall continue to have primary authority and responsibility for 
9 
protecting the environment and managing the country’s watersheds. 
10 
Further, the Pollution Adjudication Board shall retain to have jurisdiction 
11 
with respect to the adjudication of pollution cases based on exceedance of 
12 
the DENR Effluent Standards and other acts defined as prohibited under 
13 
Section 27 of RA 9275 and filed by this Department. Furthermore, the 
14 
Department shall coordinate with the DENR regarding the establishment of 
15 
protocols for management of all water-related data being collected by the 
16 
DENR; 
17 
 
18 
c. The Department of Energy (DOE) and the National Power Corporation shall 
19 
ensure that hydropower plant development plans are consistent with the 
20 
National Water Development and Management Plan; 
21 
 
22 
d. The Department shall coordinate with the Department of Agriculture (DA) to 
23 
ensure agricultural development that reduces long-term pollution for 
24 
surface water and groundwater, and agricultural and industrial economic 
25 
development that employs water efficiency, water recycling or reuse, and 
26 
the appropriate treatment of wastewater. Furthermore, the Department 
27 
shall coordinate with the DA and its Bureau of Soils and Water Management 
28 
(BSWM) regarding the establishment of protocols for management of all 
29 
water-related data being collected by DA, as well as the outputs of research 
30 
and studies by BSWM, which may serve as input to policy formulation by the 
31 
Department; 
32 
 
33 
e. The Department shall coordinate with the National Disaster Risk Reduction 
34 
and Management Council to ensure that its plans and designs for flood 
35 
control, flood risk management and drought risk management are aligned 
36 
with the objectives and plans of the Department; 
37 
 
38 
f. The Department shall coordinate with the Climate Change Commission, 
39 
Philippine 
Atmospheric, 
Geophysical 
and 
Astronomical 
Services 
40 
Administration, and National Mapping and Resource Information Authority 
41 


 
26 
for scientific studies, integrated surveys, mapping, charting, and decision 
1 
support systems; 
2 
 
3 
g. The Department shall coordinate with the Department of Tourism on 
4 
recreational or visual use of water resources; 
5 
 
6 
h. The Department shall coordinate with the Philippine Reclamation Authority, 
7 
Tourism Infrastructure and Enterprise Zone Authority and economic zone 
8 
authorities on water resources development and water requirements within 
9 
reclamation areas, tourism development areas, and economic zones, 
10 
respectively; 
11 
 
12 
i. The Department shall coordinate with the Bangsamoro Autonomous Region 
13 
in Muslim Mindanao (BARMM), specifically its Economic and Development 
14 
Council, Disaster Risk Reduction and Management Council, and Ministry of 
15 
Environment, Natural Resources and Energy, regarding the preparation of 
16 
master plans of river basins that overlap with the inland waters within the 
17 
BARMM’s jurisdiction, and ensure the alignment of these plans with the 
18 
NWRMP and the Bangsamoro Development Plan and other related regional 
19 
plans of BARMM; 
20 
 
21 
j. The Department shall coordinate with the DPWH as regards the 
22 
construction of water projects including flood control and other related 
23 
projects within the purview of the DPWH: Provided, That the flood 
24 
management plans are aligned with the NWRMP, and that flood waters be 
25 
considered and harnessed as potential water source: Provider, further, That 
26 
the Department shall coordinate with the DPWH regarding the 
27 
establishment of protocols for management of all water-related data being 
28 
collected by the DPWH and its Bureaus; 
29 
 
30 
k. The Department shall coordinate with the LGUs that own the specific areas 
31 
or land where raw water will be sourced, as regards the implementation of 
32 
Section 38 of this Act, specifically on the sharing of the total income 
33 
generated from raw water pricing; 
34 
 
35 
l. The Department shall coordinate with the Department of Human 
36 
Settlements and Urban Development in planning, monitoring and enforcing 
37 
integrated 
land 
use 
and 
water 
resources 
management 
in 
the 
38 
Comprehensive Land Use Development Plans and Zoning Ordinances of the 
39 
LGUs to ensure, among others, the protection of water sources and that 
40 
water availability is factored in proposed land use development plans and 
41 
projects; 
42 


 
27 
 
1 
m. The Department shall coordinate with relevant government agencies, 
2 
including LGUs, with respect to development projects and shall ensure 
3 
cross-cutting collaboration between and among all water subsectors and 
4 
facilitate inter-agency subsector coordination, strategic development, 
5 
planning, monitoring and provision of technical, institutional and financial 
6 
capacity building support to their different stakeholders at the water 
7 
subsector level; and 
8 
 
9 
n. All other departments and agencies of the government implementing water-
10 
related functions and projects shall ensure that the programs and projects 
11 
are consistent with the national water management plan of the Department. 
12 
 
13 
 
14 
CHAPTER IV 
15 
NATIONAL WATER RESOURCES ALLOCATION BOARD AND THE RESOURCE 
16 
ALLOCATION OFFICE 
17 
 
18 
SEC. 18. Reconstitution of the National Water Resources Board (NWRB) as the 
19 
National Water Resources Allocation Board. – The NWRB is hereby reconstituted and 
20 
shall henceforth be known as the National Water Resources Allocation Board, 
21 
hereafter called the “Board”. The water resources allocation and regulation functions 
22 
of the NWRB are hereby transferred to the Board, which shall supervise the effective 
23 
appropriation and regulation of the water resources in the country in accordance with 
24 
PD 1067. 
25 
 
26 
The Board shall be composed of the Secretary of Water Resources as the Chair, 
27 
with the Secretary of Environment and Natural Resources as the Vice-Chairperson, and 
28 
the heads of agencies of the NEDA, Department of Justice, Department of Science 
29 
and Technology, and the University of the Philippines – National Hydraulic Research 
30 
Center as members. 
31 
 
32 
SEC. 19. Functions of the Board. – The Board shall perform the following 
33 
functions: 
34 
 
35 
a. Promulgate, among others, rules and regulations for the exploitation and 
36 
optimum utilization of water resources, in accordance with PD 1067 and 
37 
other existing laws, including the imposition on water appropriators of such 
38 
fees or charges by the Department of Water Resources: Provided, That the 
39 
imposition and collection of such fees and charges shall be implemented by 
40 
the Department of Water Resources; 
41 
 
42 


 
28 
b. Approve the guidelines and processes pertaining to water regulation, as 
1 
recommended by the Secretariat; 
2 
 
3 
c. Review and decide on requests for permits to extract or utilize the country’s 
4 
water resources and grant the corresponding water rights, upon 
5 
recommendation of the Resource Allocation Office: Provided, That the water 
6 
rights are exercised within five (5) years of granting of such rights: Provided, 
7 
further, That applicants for water permits shall submit proof of land 
8 
ownership of, or right to use the property where the water source is located: 
9 
Provided, finally, That, if the applicant is currently using the water source 
10 
being applied for domestic or municipal purposes upon effectivity of this Act, 
11 
such applicant may submit such proof of prior use of possession of said 
12 
property in lieu of ownership or right to use; 
13 
 
14 
d. Exercise appellate jurisdiction over decisions in cases involving the following: 
15 
 
16 
1. Violations and disputes relating to the appropriation, utilization, 
17 
exploitation, development, control, conservation and protection of 
18 
waters; 
19 
 
20 
2. Violations and disputes on raw water fees; and 
21 
 
22 
3. Violations and disputes involving water permits, administrative 
23 
allocation of water resources and transfer of water rights; 
24 
 
25 
e. Issue subpoena duces tecum and subpoena ad testificandum; 
26 
 
27 
f. Cite any person or party in contempt for refusal to appear, testify or comply 
28 
with the lawful orders of the Board in relation to any matter subject to its 
29 
investigation; 
30 
 
31 
g. Hear, receive evidence, and decide on cases falling within its jurisdiction; 
32 
h. Impose 
the 
appropriate 
sanctions 
over 
violations 
committed 
by 
33 
appropriators in accordance with existing laws, rules and regulations, as well 
34 
as future rules and regulations which the Board shall promulgate; 
35 
 
36 
i. Review, update, and revise all fees, charges, and penalties imposed on all 
37 
water appropriators as stated under Chapters VII and VIII of PD 1067, upon 
38 
recommendation by the Secretariat, and based on scientific and evidence-
39 
based studies; 
40 
 
41 


 
29 
j. Delegate specific tasks vested unto the Board that may be undertaken by the 
1 
Executive Director, as may be necessary; 
2 
 
3 
k. Promulgate its own rules and procedures; and 
4 
 
5 
l. Exercise such other powers as may be necessary to carry out its duties and 
6 
responsibilities under this law. 
7 
 
8 
No injunction may be issued by any court to restrain any proceeding before 
9 
the Board except on the basis of a question of law by the Supreme Court on 
10 
certiorari. 
11 
 
12 
Every order or decision rendered by the Board shall be in writing and shall 
13 
state clearly and distinctly the facts and the law on which it is based. The 
14 
Board shall decide each case or application within thirty (30) days following 
15 
its formal submission for resolution. It shall publish and make available for 
16 
public inspection all decisions and final orders, including those in the 
17 
adjudication of contested cases or applications 
18 
 
19 
SEC. 20. Resource Allocation Office. – There is hereby created a Resource 
20 
Allocation Office, which shall be attached to the Department. It shall serve as 
21 
Secretariat to the Board and shall exercise the following functions in order to provide 
22 
technical support to the Board towards the effective regulation of the country’s water 
23 
resources: 
24 
 
25 
a. Advise the Board on all matters relating to resource allocation and 
26 
regulation; 
27 
 
28 
b. Formulate rules and regulations for the exploitation and optimum 
29 
utilization of surface water, groundwater, and seawater extraction and use, 
30 
for the approval of the Board, and for implementation by the Resource 
31 
Allocation Office, including the processes for the application of water 
32 
permits, in accordance with PD 1067 and other existing laws; 
33 
c. Process applications of rights to utilize water resources for the appropriate, 
34 
optimal and sustainable use of surface and ground water, for the approval 
35 
of the Board or its Executive Director, as may be delegated by the Board; 
36 
 
37 
d. Upon approval by the Board, issue water permits granted to water 
38 
appropriators; 
39 
 
40 


 
30 
e. Monitor performance of water rights grantees, including, among others, 
1 
ensuring that water utilization is in accordance with the terms of the 
2 
permits granted unto them; 
3 
 
4 
f. 
Investigate, motu proprio, violations of the water rights and the Water Code; 
5 
 
6 
g. In the case of violations and conflicts between and among users, file the 
7 
necessary cases for the decision of the Board; 
8 
 
9 
h. Enforce the decisions promulgated by the Board, and as may be delegated 
10 
by the Board; 
11 
 
12 
i. 
Coordinate with other relevant units of the Department regarding the 
13 
generation, updating, managing, and sharing of water data relevant to each 
14 
other’s performance of functions; 
15 
 
16 
j. 
Respond to consumer complaints, and ensure the adequate promotion of 
17 
consumer interests; and 
18 
 
19 
k. Perform such other related functions and activities that are necessary for 
20 
the effective regulation of water-related services. 
21 
 
22 
The Office shall be headed by an Executive Director who shall have the rank of 
23 
an Undersecretary, and shall be assisted by one (1) Deputy Executive Director who 
24 
shall have the rank of an Assistant Secretary. 
25 
 
26 
CHAPTER V 
27 
WATER REGULATORY COMMISSION 
28 
 
29 
SEC. 21. Water Regulatory Commission. – There is hereby created and 
30 
established as an independent, quasi-judicial regulatory body to be known as the 
31 
Water Regulatory Commission, hereinafter referred to as the Commission, which shall 
32 
be organized within one hundred eighty (180) days after the effectivity of this Act. The 
33 
Commission shall have a Board of Commissioners, and shall be vested with powers 
34 
and functions, as conferred and set forth hereunder. 
35 
 
36 
SEC. 22. Powers and Functions of the Commission. – The overall authority and 
37 
powers of the Commission shall cover and apply to all service providers, whether 
38 
private or public, providing or intending to provide water supply, including suppliers to 
39 
subdivisions or other service providers, sewerage, or septage treatment and disposal 
40 
services for domestic, residential, institutional, industrial or commercial use. 
41 
 
42 


 
31 
The Commission shall exercise the following powers and functions: 
1 
 
2 
a. Issue and promulgate rules, regulations and guidelines as may be necessary 
3 
to implement and enforce its powers and functions under this Act; 
4 
 
5 
b. Promulgate and enforce just and reasonable technical standards, 
6 
classifications and measurements of service: Provided, That local water 
7 
districts, LGU-run and private utilities, especially level II and III water service 
8 
providers found performing significantly below prescribed standards shall 
9 
be required to submit a Public Service Improvement Plan with committed 
10 
performance improvements with a one-year implementation timeframe: 
11 
Provided, further, That unjustifiable failure to implement provisions of, or 
12 
meet commitments in, the Public Service Improvement Plan shall be cause 
13 
for dissolution, consolidation, privatization, or management takeover of the 
14 
local water district: Provided, finally, That the Commission shall have the 
15 
power to cause such dissolution, consolidation, privatization, or 
16 
management takeover and shall mandate the Department to implement the 
17 
same; 
18 
 
19 
c. Coordinate with the Department in the implementation of intervention, 
20 
consolidation, dissolution, privatization, or takeover, and shall ensure the 
21 
continuity of delivery of public service;  
22 
 
23 
d. Coordinate with the Philippine Competition Commission and provide 
24 
technical support in the Commission’s exercise of authority and jurisdiction 
25 
to establish rules and enforce regulations to monitor, investigate, provide 
26 
remedies for, and provide inputs in the Philippine Competition 
27 
Commission’s hearings and deliberations on cases involving any market 
28 
power abuse or anti-competitive or discriminatory act or behavior by or 
29 
against any participant in the water supply and sanitation sector, excluding 
30 
only those agreements involving projects that are not considered natural 
31 
monopolies, including in respect of the determination of whether any 
32 
merger, acquisition, joint venture or other transaction, agreement or 
33 
arrangement by, between or among water service providers or any 
34 
participant in the water supply and sanitation sector is anti-competitive or 
35 
will substantially prevent, restrict or lessen competition in the relevant 
36 
market. Without prejudice to the actions that the Philippine Competition 
37 
Commission, pursuant to RA 10667, may undertake on its own, the Water 
38 
Regulatory Commission may be directed by the Philippine Competition 
39 
Commission, upon finding that a market participant has engaged in, or fell 
40 
victim to such act or behavior, to stop or redress the same within the 
41 


 
32 
functions and powers granted to the Water Regulatory Commission under 
1 
this Act; 
2 
 
3 
e. Issue licenses authorizing the operation of water supply and sanitation 
4 
services, including community water services, in any specified area or areas 
5 
with water supply and sanitation services in any specified area in the 
6 
Philippines: Provided, That any license to use water resources or operate 
7 
water supply and sanitation services shall be considered expired if not 
8 
exercised by the licensee within five (5) years upon the date of issuance; 
9 
 
10 
f. Impose and collect annual levies, and reasonable fees and surcharges as 
11 
may be necessary for achieving the purposes, powers and functions of the 
12 
Commission: Provided, That the rate of annual levies and fees shall be 
13 
determined strictly on a partial cost recovery basis for the reasonable and 
14 
actual cost of regulation: Provided, further, That nothing in this section shall 
15 
be construed as authorizing the Commission to impose and collect ad 
16 
valorem annual levies; 
17 
 
18 
g. With due regard to the standardized pricing framework developed by the 
19 
Department pursuant to Section 7(h) of this Act, review, determine, fix and 
20 
approve, 
consistent 
with 
the 
rules, 
guidelines, 
procedures 
and 
21 
methodologies which the Commission shall provide, proposed water and 
22 
sewerage and septage management tariffs, rates and charges that 
23 
licensees may impose upon their consumers. The sewerage and septage 
24 
management tariffs, rates and charges may be in the form of an 
25 
environmental fee based on the actual water consumption of the 
26 
consumers for regular conduct of desludging and fixed fees for emergency 
27 
desludging. 
28 
 
29 
The Commission shall endeavor to adopt a local pricing framework, which 
30 
shall provide for the minimum water, sewerage and septage management 
31 
rates and allow for uniform adjustments to the consumer price index, or 
32 
foreign exchange, as applicable, across one or more areas: Provided, That 
33 
service providers may apply for adjustments to the tariff rates taking into 
34 
consideration their actual and proposed expenditures in the construction, 
35 
operation, and maintenance of their respective water, sewerage, and 
36 
septage management systems. 
37 
 
38 
All applications for the imposition or adjustment of water and sewerage and 
39 
septage tariffs, rates and charges shall be acted upon by the Commission 
40 
within a period of four (4) months. If the Commission fails to issue a 
41 


 
33 
decision or resolution within said prescribed period, the application shall be 
1 
deemed approved; 
2 
 
3 
h. Appraise and value property and equipment used by licensees in providing 
4 
water supply and sanitation services and, for this purpose, develop a 
5 
database for the value of the property and equipment used by the licensees 
6 
in providing water supply and sanitation services by requiring each licensee 
7 
to submit, on a periodic basis, an appraisal report covering such assets duly 
8 
signed and sealed by an appraisal firm duly accredited by the Securities and 
9 
Exchange Commission: Provided, That unless otherwise expressly 
10 
warranted, the value of such property and equipment as determined by such 
11 
independent appraisal firms shall be presumed a true and reasonable 
12 
valuation thereof; 
13 
 
14 
i. Enforce technical, financial and other performance standards set by the 
15 
Commission for licensees or utilities; 
16 
 
17 
j. Respond to consumer complaints and ensure the adequate promotion of 
18 
consumer interests and investigate motu propio violations of Sections 27, 
19 
28 and 29 of this Act; 
20 
 
21 
k. Investigate accidents directly or indirectly arising from or connected with 
22 
the maintenance or operation of the service, and make such order or 
23 
recommendation as the public interest may warrant; 
24 
 
25 
l. Require the review or approval of contracts or agreements that may impact 
26 
on the tariff and rates of service provision entered into by service providers 
27 
upon petition or motu propio wherein its determination public interest so 
28 
dictates; 
29 
 
30 
m. Require the submission of reports, plans, and other documents that define 
31 
the performance targets of the licensees or utilities, and regular 
32 
accomplishment reports; 
33 
 
34 
n. Conduct benchmarking and monitor the performance of licensees or 
35 
utilities under their jurisdiction, and publish reports detailing the results 
36 
thereof; 
37 
 
38 
o. Amend, modify, suspend, or revoke any license issued by them, after due 
39 
notice and hearing, on any of the following grounds: (1) when the facts and 
40 
circumstances on the strength of which the license was issued have been 
41 
materially misrepresented or have materially changed; (2) where the 
42 


 
34 
licensee has failed to meet or comply with terms, conditions, and 
1 
performance targets, including but not limited to service expansion, that 
2 
may have targets, including but not limited to service expansions, that may 
3 
have been set in the license; (3) where the licensee is found to be manifestly 
4 
inefficient in the operation of or provision of water supply and sanitation 
5 
services in its area; or (4) when the licensee thereof has violated or willfully 
6 
refused to comply with any order, rule or regulation of the Commission or 
7 
any provision of this Act; 
8 
 
9 
p. Appoint an interim management committee to ensure continuity of service 
10 
in case a licensee, including those run by local government units or local 
11 
water districts, fails to meet the conditions of the license; 
12 
 
13 
q. Adopt and require that books, records, and accounts be kept and maintained 
14 
in accordance with the prescribed uniform accounting system; 
15 
 
16 
r. Fix and determine, for rate-setting purposes, the proper and adequate rates 
17 
of depreciation of properties and equipment used in water supply and 
18 
sanitation services;  
19 
 
20 
s. Impose and collect annual levies and reasonable fees and surcharges as 
21 
may be necessary for achieving the purposes, powers and functions of the 
22 
Commission; 
23 
 
24 
t. Require the submission of reports on finances and operations, verified 
25 
under oaths by the owner or president and secretary of the board of the 
26 
licensee; 
27 
 
28 
u. Determine and require the monitoring and submission of such data, 
29 
statistics and other information from any or all licensees as may be 
30 
necessary for the effective and efficient exercise of its duties, functions, 
31 
powers and responsibilities;  
32 
 
33 
v. Investigate, motu propio or upon a written complaint, any matter concerning 
34 
the operation of the service and violations of Sections 28 and 29 and other 
35 
provisions of this Act, including alleged inefficient or inappropriate 
36 
performance of obligations by water service providers, and, after due 
37 
process, render decisions thereon within one (1) year; 
38 
 
39 
w. Impose penalties and fines against any licensee or against its owners, 
40 
directors, officers, agents or representatives for any violation of this Act or 
41 


 
35 
of the license, order, rule, regulation or requirement issued by the 
1 
Commission; 
2 
 
3 
x. Require any licensee to pay the actual expenses incurred by the 
4 
Commission in any investigation if it shall be found that a licensee violated 
5 
any provision of this Act or of the license, order, rule, regulation or 
6 
requirement issued by the Commission; 
7 
 
8 
y. Advise, apprise and coordinate with other relevant agencies of the national 
9 
or local government on any matter relating to water supply and sanitation 
10 
services; 
11 
 
12 
z. Deputize agents, whether from the public or private sector, to assist in the 
13 
performance of any of the powers and functions of the Commission; 
14 
 
15 
aa. Appoint an interim or temporary management committee upon appeal and 
16 
after due hearing, to ensure continuity of service in case a licensee, 
17 
including those run by local government units, or local water districts, fails 
18 
to meet the conditions of the license; 
19 
 
20 
bb. Appoint, hire and maintain adequate staff and personnel, advisers, or 
21 
consultants, with suitable qualifications and experience, as necessary; 
22 
 
23 
cc. Exercise original and exclusive jurisdiction over all cases involving disputes 
24 
between and among participants or stakeholders in the water supply and 
25 
sanitation services; 
26 
 
27 
dd. Issue rules and regulations on terms and conditions prescribing minimum 
28 
and mandatory terms for concession agreements, joint venture agreements, 
29 
management agreements, service contracts or other contractual 
30 
arrangements that may be entered into by government entities including 
31 
local water utilities and local government units and private sector entities or 
32 
other water service providers for the provision of water or sanitation 
33 
services, such as the (i) the term, scope and total cost of the activity, which 
34 
may be subdivided into phases; (ii) committed contributions and 
35 
corresponding performance security requirements in accordance with any 
36 
agreed phased implementation of the activity; and (iii) cost recovery 
37 
schemes and percentage of the parties’ share in the profits and losses, 
38 
among others; 
39 
 
40 
ee. Upon the recommendation of the Department, and after due notice and 
41 
hearing, terminate or cancel water permits issued and outstanding as of the 
42 


 
36 
date of the effectivity of this Act to any government or private sector entities 
1 
to ensure optimal and efficient use of water resources. The Commission 
2 
shall principally rely on the prima facie findings of the Department, acting 
3 
on the basis of information, records and reports submitted by any holders 
4 
of such water permits as of the effectivity date of this Act, that the water 
5 
resource covered by such water permits have not been substantially utilized 
6 
or no substantial water works facilities, systems or other infrastructure has 
7 
been constructed in pursuit thereof, in each case, for a period one (1) year 
8 
from the date of issuance thereof, or if the water is used, totally or partially, 
9 
for any purpose other than those approved in the water permit. The 
10 
Commission shall decide on the recommendation for the Department within 
11 
six (6) months from receipt of the recommendation. The Commission by 
12 
itself may exercise this function; 
13 
 
14 
ff. Issue 
rules, 
guidelines, 
procedures, 
and 
methodologies 
for 
the 
15 
determination of the appropriate water and sewerage and septage 
16 
management tariffs, rates and charges and review and confirm such tariffs; 
17 
 
18 
gg. Issue rules, guidelines, procedures and methodologies for the computation 
19 
of any adjustment of any approved water and sewerage and septage 
20 
management tariffs, rates and charges based on the prevailing consumer 
21 
price index or foreign exchange adjustments set by the appropriate national 
22 
government agency, or any other factors customary in the water or 
23 
sanitation industries which require adjustment or rebasing of the tariffs, 
24 
which adjustment shall be implemented automatically subject to a thirty 
25 
(30) day prior written notice to the Commission; 
26 
 
27 
hh. Determine the existence of any material adverse government action which 
28 
has a material and adverse effect on any of the rights and privileges of, or 
29 
on the enjoyment or exercise thereof by the licensees, or which has a 
30 
material and adverse effect on the licensees’ ability to comply with their 
31 
financial or other contractual obligations to provide water or sanitation 
32 
services, and determine the appropriate remedial measures therefor, which 
33 
may include compensation or extension of permits or licenses; and 
34 
 
35 
ii. Perform such other incidental powers and functions as may be necessary 
36 
to attain the objectives of this Act. 
37 
 
38 
SEC. 23. Composition of the Commission. –  
39 
 
40 
a. The Commission shall be a collegial body composed of five (5) full-time 
41 
members consisting of a Chairperson and four (4) members, who shall all 
42 


 
37 
be appointed by the President. All members of the Commission must be 
1 
citizens and residents of the Philippines, at least thirty-five (35) years of age, 
2 
and of good moral character, of recognized integrity and competence in the 
3 
field of law, business, commerce, finance, accounting or public 
4 
administration, water or utility economics, management, physical or 
5 
engineering services, hydrology and other related services, with at least 
6 
three (3) years of actual and distinguished experience in their respective 
7 
fields of expertise: Provided, That out of the four (4) members of the 
8 
Commission, at least one (1) shall be a member of the Philippine Bar with 
9 
at least ten (10) years of experience in the active practice of law, at least 
10 
one (1) shall be a certified public accountant with at least ten (10) years of 
11 
experience in active practice, and at least one (1) shall be a licensed 
12 
engineer with experience in the water sector; 
13 
 
14 
b. The term of office of each member of the Commission shall be seven (7) 
15 
years: Provided, That among the members first appointed, the Chairperson 
16 
shall serve for a period of seven (7) years, two (2) members shall serve for 
17 
five (5) years and the other two (2) members shall serve for three (3) years: 
18 
Provided, further, That any member whose term has expired as specified 
19 
herein shall serve as such until a successor shall have been appointed and 
20 
qualified: Provided, furthermore, That any appointment to fill a vacancy in the 
21 
Commission arising from death, removal, retirement or resignation shall be 
22 
made only for the unexpired term: Provided, finally, That in no case shall any 
23 
member serve for more than seven (7) years in the Commission. 
24 
 
25 
c. The Commission shall meet as often as may be necessary on such day or 
26 
days as the Chairperson may fix. The presence of at least three (3) members 
27 
of the Commission shall constitute a quorum, which shall be necessary for 
28 
the transaction of any business. The affirmative vote of majority of the 
29 
members of the Commission where a quorum is present shall be necessary 
30 
for the adoption of any order, resolution, decisions, or other act of the 
31 
Commission in the exercise of its quasi-judicial functions: Provided, That in 
32 
promulgating rules, regulations, guidelines and in exercising its quasi-
33 
legislative functions, an affirmative vote of three (3) members shall be 
34 
required.  
35 
 
36 
d. The Chairperson of the Commission shall exercise general executive control 
37 
and supervision over the Commission and its members, staff and personnel, 
38 
agents and representatives. Within three (3) months from the creation of the 
39 
Commission and the appointment of all Members of the Commission, the 
40 
Chairperson shall determine and establish the organizational structure and 
41 
plantilla positions necessary to carry out the powers and functions of the 
42 


 
38 
Commission subject to the review and approval of the Department of 
1 
Budget and Management (DBM). 
2 
 
3 
The plantilla positions of the Commission shall be filled by regular 
4 
appointments in accordance with Civil Service laws, rules, and regulations. 
5 
Members of the Commission shall enjoy security of tenure and shall not be 
6 
suspended or removed from office except for just cause as specified by law. 
7 
 
8 
e. The Chairperson and members of the Commission or any of their relatives 
9 
within the fourth civil degree of consanguinity or affinity, legitimate or 
10 
common law, shall be prohibited from holding any interest whatsoever, 
11 
either as investor, stockholder, officer or director, in any company or entity 
12 
engaged in provision of water supply and distribution, septage management 
13 
and sewerage services and must, therefore, divest through sale or legal 
14 
disposition of any and all interests in the water sector upon assumption to 
15 
office. 
16 
 
17 
SEC. 24. Secretariat of the Commission. – The Commission shall establish a 
18 
Secretariat which shall provide the Commission with technical and support services, 
19 
including the following: 
20 
 
21 
a. Provide the necessary technical inputs and secretariat support to the 
22 
Commission to facilitate the conduct of its functions; 
23 
 
24 
b. Maintain a database on the water supply and sanitation subsector; and 
25 
 
26 
c. Coordinate with other relevant agencies of the national or local government 
27 
on any matter relating to water supply and sanitation. 
28 
 
29 
SEC. 25. Executive Director. – The Commission shall appoint an Executive 
30 
Director who shall head the Commission Secretariat, keep and maintain the official 
31 
records of the Commission, render a report on the proceedings of the Commission, 
32 
and administer oaths in all matters falling within the jurisdiction of the Commission. 
33 
 
34 
The Executive Director shall be responsible for the effective implementation of 
35 
the policies, plans, programs, rules, regulations and directives of the Commission; 
36 
coordinate and supervise the activities of the different operating units under the 
37 
Commission; and perform such functions as may be assigned by the Chairperson or 
38 
other members of the Commission. 
39 
 
40 
SEC. 26. Compensation and Other Emoluments. – The compensation of the 
41 
members of the Commission and its staff shall conform to the provisions of RA 6758, 
42 


 
39 
as amended, otherwise known as the Compensation and Position Classification Act 
1 
of 1989, as amended, and other relevant laws. 
2 
 
3 
 
4 
CHAPTER VI 
5 
REGISTRATION AND LICENSING 
6 
 
7 
SEC. 27. Registration and Licensing of All Water Supply and Sanitation Services. 
8 
– All water supply and sanitation service providers, including bulk water suppliers and 
9 
those providing services to subdivisions and other service providers, shall register 
10 
with the Commission and, subject to its rules, guidelines, procedures and other 
11 
issuances of the Commission, obtain a license to operate from the appropriate 
12 
regulatory units: Provided, That the Commission shall act on the application for the 
13 
issuance or the conversion of such licenses and renewals thereof within the maximum 
14 
period of one (1) year as provided under this Act or by RA 11032, otherwise known as 
15 
the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. 
16 
 
17 
The Commission shall ensure that the grant and revocation of licenses are 
18 
carried out fairly, transparently, and without discrimination. Issuances of the 
19 
Commission shall specify, among others, the qualifications, requirements, and 
20 
procedure for the grant and revocation of licenses, including the standards and 
21 
performance targets that shall continuously be complied with to keep the licenses 
22 
valid. Unless otherwise provided in this Act or by the Commission, no public water 
23 
supply and sanitation service provider shall commence or conduct the business of 
24 
providing water supply and sanitation services without first obtaining a license. 
25 
Concession agreements and other contracts for water supply provision and water 
26 
sanitation and treatment services currently existing shall remain valid and enforceable 
27 
unless otherwise terminated, after due notice and hearing for reasons provided in the 
28 
existing terms and conditions under the concession or service agreement or contract, 
29 
or when invalidated by the Commission, after due notice and hearing, where national 
30 
security, national emergency or public interest so dictates.  
31 
 
32 
Concession agreements, joint venture agreement, bulk water supply 
33 
agreements, management and service agreements, and other contracts for water 
34 
supply provision and water sanitation and treatment services currently existing shall 
35 
remain valid and enforceable unless otherwise terminated, after due notice and 
36 
hearing for reasons provided in the existing terms and conditions under the 
37 
concession or service agreement or contract, or when invalidated by the Commission, 
38 
after due notice and hearing, where national security, national emergency or public 
39 
interest so dictates. Until the issuance of new or converted or updated registrations, 
40 
licenses or permits, as contemplated under this Act, such existing concession 
41 
agreements, joint venture agreements, bulk water supply agreements, management 
42 


 
40 
and service agreements and other contracts for water supply provision or water 
1 
sanitation treatment services shall serve as the license or other legal basis for the 
2 
authority to engage in water supply or sanitation services during the term thereof. 
3 
 
4 
SEC. 28. Conditions of License. – The Commission may impose such conditions 
5 
on the licensee as it may deem necessary, such as: 
6 
 
7 
a. Tariffs, rates and charges that may be imposed from its customers or 
8 
consumers; 
9 
 
10 
b. Term fixing the duration of the privilege; 
11 
 
12 
c. Grounds for modification, suspension or cancellation of the License; 
13 
 
14 
d. Minimum technical performance and service level standards; 
15 
 
16 
e. Expansion targets and service level improvements over time; 
17 
 
18 
f. Restrictions or conditions for transferability of the business or controlling 
19 
interest in the business; 
20 
 
21 
g. Reportorial requirements and obligations of the grantee; and 
22 
 
23 
h. Submission to annual performance audit by the Commission or its duly 
24 
authorized representative(s). 
25 
 
26 
The Commission shall specify the requirements and procedure for existing 
27 
holders of a Certificate of Public Convenience (CPC), Certificates of Public 
28 
Convenience and Necessity (CPCN) issued by NWRB, or CoC issued by 
29 
LWUA, to convert their existing certificates into licenses to operate in 
30 
accordance with Section 27 hereof.  
31 
 
32 
To ensure continuity of water and sanitation services, a CPC, CPCN, 
33 
provisional authority or a CoC issued by NWRB or the LWUA prior to the 
34 
effectivity of this Act shall remain valid for a period of five (5) years counted 
35 
from the later of the date of issuance thereof or the date of effectivity of the 
36 
implementing rules and regulations duly issued by the Commission for the 
37 
conversion thereof into licenses to operate in accordance with this Act. 
38 
 
39 
All local water utilities, existing water service providers or holders of CPCN 
40 
or CoC shall be duly prioritized in the issuance of the licenses to operate 
41 
over the areas where they currently operate or as may be covered by their 
42 


 
41 
franchises. The submission of the CPC, CPCN, provisional authority, or the 
1 
CoC issued by the NWRB or LWUA shall be sufficient basis for the issuance 
2 
of the new and converted or updated licenses to operate required and 
3 
contemplated under this Act. To ensure continuity of service, the 
4 
Commission shall complete the issuance of such converted or updated 
5 
licenses not later than six (6) months from the effectivity of the 
6 
implementing rules and regulations issued by the Commission pursuant to 
7 
this Act. 
8 
 
9 
All existing providers of water supply and sanitation services without a legal 
10 
and valid CPC, CPCN, provisional authority or CoC shall register with the 
11 
Commission for a license within six (6) months from the effectivity of this 
12 
Act. 
13 
 
14 
SEC. 29. Rights and Duties of Licensees. – 
15 
 
16 
a. Any person granted a license under this Act shall have the obligation to 
17 
ensure that licensed activities are conducted to further public interest and, 
18 
in particular: 
19 
 
20 
1. Foster the maintenance and development of efficient, coordinated 
21 
and viable operation of their licensed activities; 
22 
 
23 
2. Ensure that their water supply and sanitation services are provided in 
24 
a diligent, conscientious and workmanlike manner, in accordance 
25 
with applicable laws, rules, and regulations issued by the 
26 
Commission and the generally accepted standards and practices of 
27 
the water supply and sanitation industry; and 
28 
 
29 
3. Comply with drinking water quality requirements and standards that 
30 
may be established by the Commission, and the DOH. 
31 
 
32 
b. Any person granted a license under this Act shall, to the extent allowed by 
33 
law and specified in the license, has the right to acquire or lease land, lay or 
34 
repair water or sanitation main lines and other relevant facilities in public 
35 
ways to fulfill the terms and conditions under the license; 
36 
 
37 
c. Subject to any condition or limitation laid down in the license, a licensee 
38 
may discontinue water supply and sanitation services to a customer if such 
39 
customer defaults in the payment of fees due to the licensee for the water 
40 
supplied or sanitation services provided, or for acts of pilferage pursuant to 
41 


 
42 
Sections 8, 9, 10, and 11 of RA 8041, otherwise known as the Water Crisis 
1 
Act of 1995; 
2 
 
3 
d. Any license issued under this Act shall contain provisions designed to 
4 
ensure that licensees: 
5 
1. Publish the tariff and other charges approved by and the terms and 
6 
conditions imposed by the Commission for the provision of water 
7 
supply and sanitation services; 
8 
 
9 
2. Prepare, within three (3) months from the issuance of a license, in 
10 
consultation with its customers, a Customer Service Code specifying 
11 
the manner and procedure for: (a) metering, billing, and collection of 
12 
the licensee’s approved tariff and other charges, (b) disconnection or 
13 
suspension of service in case of non-payment of tariffs or other 
14 
charges, or acts of pilferage, and (c) recommendation and recovery 
15 
of arrears in tariffs and other charges; 
16 
 
17 
3. Maintain financial accounts in accordance with the manner and 
18 
procedure specified in the license and as may be required by the 
19 
Commission; and 
20 
 
21 
4. Maintain and upon request by anyone during regular office hours, 
22 
promptly make available for scrutiny and inspection such data, 
23 
statistics and other information, as may be required by the 
24 
Commission. 
25 
 
26 
SEC. 30. Setting Tariffs, Rates, and Other Charges. – With due regard to the 
27 
standardized pricing framework developed by the Department pursuant to Section 
28 
7(h) of this Act, shall establish tariffs, rates and other charges which are fair and 
29 
reasonable, and ensure economic viability and a fair return on investments. 
30 
 
31 
Service providers may apply for the setting of tariffs, rates and charges based 
32 
on and consistent with a rate-setting methodology that the Commission shall, after 
33 
due consultation, define and publish, taking into account the following, among others: 
34 
 
35 
a. Reasonable and prudent capital and recurrent costs of providing the service 
36 
including a reasonable rate of return on capital; 
37 
 
38 
b. Efficiency of the service; 
39 
 
40 
c. Incentives for enhancement of efficiency; 
41 
 
42 


 
43 
d. Capacity to pay of the customers/consumers; 
1 
 
2 
e. Equity considerations; 
3 
 
4 
f. Administrative simplicity; 
5 
 
6 
g. In cases involving valid and subsisting concession agreements prior to the 
7 
enactment of this Act, the methodology provided under the Concession 
8 
Agreement; 
9 
 
10 
h. Compliance with obligations as set out under pertinent laws, jurisprudence, 
11 
and, in cases involving valid and subsisting concession agreements prior to 
12 
the enactment of this Act, the provisions of the Concession Agreement; and 
13 
 
14 
i. To the fullest extent practicable, the terms and conditions of the tariffs, 
15 
rates or other price-setting mechanisms set forth in any concession 
16 
agreement, joint venture agreement or other similar agreement for the 
17 
provision of water or sanitation services by an existing service provider. 
18 
 
19 
Tariffs, rates and charges set shall be presumed valid and reasonable 
20 
unless invalidated by the Commission, after due notice and hearing, acting 
21 
on a protest or contest duly filed with the Commission to ensure continuity 
22 
of service, application for setting of tariffs, rates and other charges shall be 
23 
decided within a non-extendible period of ninety (90) days from the date of 
24 
filing thereof, and the failure of the Commission to act on any such 
25 
applications shall result in a provisional approval: Provided, That in no case 
26 
shall proceedings on any applications for the setting of tariffs, rates and 
27 
other charges exceed to a total period of one hundred twenty (120) days 
28 
reckoned from the date of filing of the application. 
29 
 
30 
SEC. 31. Direct Access. – Fifty-one percent (51%) of the registered water 
31 
consumers in a service area, municipality, city or province may petition for direct 
32 
access to water from any water service provider, subject to concurrence by and 
33 
reasonable compensation to the service provider and approval by the Commission. If 
34 
the petition for direct access from any water service provider is approved by the 
35 
Commission, the new water service provider shall reimburse the existing service 
36 
provider for, as applicable, either the book value or the market value as determined by 
37 
an independent appraiser accredited by the Commission, whichever is higher, of the 
38 
water source, water supply or water distribution or transmission facilities, pipelines 
39 
and other equipment which shall be transferred to or utilized by the new water service 
40 
provider. The Commission shall promulgate the implementing rules and procedures 
41 


 
44 
for this mode of service, which shall include, among others, financial and technical 
1 
capability of the new service provider. 
2 
 
3 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of Systems. 
4 
– The Commission shall promote innovative schemes such as the consolidation or 
5 
integration of water supply and sanitation services, or providers in the same service 
6 
area, where it shall result in improved efficiency, service expansion and lower costs. 
7 
To this end, the Commission shall establish and issue such rules and guidelines as 
8 
may be necessary to (a) create incentives to encourage efficiency and service 
9 
expansion; (b) establish the standards and targets that service providers are required 
10 
to meet; and (c) define the fines and penalties that shall be imposed for failure to meet 
11 
such standards and targets. 
12 
 
13 
CHAPTER VII 
14 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
15 
 
16 
SEC. 33. Proceedings Before the Commission. – For the purpose of any 
17 
investigation, inquiry or proceeding, the Commission shall: 
18 
 
19 
a. Issue subpoena duces tecum and subpoena ad testificandum; 
20 
 
21 
b. Appoint hearing officers to hear and receive evidence on behalf of the 
22 
Commission; and 
23 
 
24 
c. Cite any person or party for contempt for refusal to appear, testify, or comply 
25 
with an order of the Commission on any matter that is the subject of 
26 
investigation, inquiry or proceeding before the Commission. 
27 
 
28 
SEC. 34. Orders and Decisions of the Commission. – Any order, resolution, or 
29 
decision of the Commission shall be promulgated promptly, expeditiously, reasonably, 
30 
and in writing, and shall state clearly and distinctly the facts and law on which it is 
31 
based. The Commission shall publish and make available for public inspection, all 
32 
decisions and final orders in the adjudication of contested cases or applications. 
33 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. –  
34 
a. The orders, rulings, and decisions of the Commission are final and 
35 
executory unless appealed to the Court of Appeals within fifteen (15) days 
36 
from receipt of notice of such order, ruling or decision: Provided, That 
37 
orders, rulings, and decisions of the Commission approving tariffs, shall be 
38 
immediately executory and may be suspended only upon appeal and filing 
39 
of a bond, in an amount to be fixed by the Commission, to answer for 
40 


 
45 
damages occasioned by the suspension or stay of execution of such orders, 
1 
rulings, and decisions; 
2 
 
3 
b. No injunction may be issued by any court or administrative agency to 
4 
restrain any proceeding before, or the implementation or execution of any 
5 
order, ruling, or decision of the Commission, except on the basis of a 
6 
question of law brought before the Supreme Court on certiorari. 
7 
 
8 
c. Any act or decision of the Commission shall not be invalidated merely 
9 
because of a defect or irregularity in, or in connection with, the appointment 
10 
or vacancy in the Office of the Chairperson or any other member of the 
11 
Commission. 
12 
CHAPTER VIII 
13 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
14 
 
15 
SEC. 36. Interface with Other Sector Regulators. – 
16 
 
17 
a. The DENR shall continue to exercise primary jurisdiction over programs 
18 
aimed at protecting the environment and the quality of water sources from 
19 
waste and pollution, and shall promulgate rules, regulations, and standards 
20 
in this regard. The DOH shall continue to exercise primary jurisdiction over 
21 
the determination and enforcement of standards for quality drinking water 
22 
and sanitation; 
23 
 
24 
b. The Commission shall coordinate with the: 
25 
 
26 
1. DOH to ensure that the standards and targets for quality drinking 
27 
water and sanitation are consistently complied with; 
28 
 
29 
2. LGUs for development projects relating to water supply and 
30 
sanitation; and 
31 
 
32 
3. PCC for the provision of its technical advisory services in the exercise 
33 
of the exclusive authority and jurisdiction of the Commission to 
34 
investigate and act on any market power abuse or anti-competitive 
35 
or discriminatory act or behavior by or against any participant in the 
36 
water supply and sanitation sector. 
37 
 
38 
CHAPTER IX 
39 
TRANSITORY PROVISIONS 
40 
 
41 


 
46 
SEC. 37. Organizational Structure and Staffing Pattern. – The Secretary of the 
1 
Department and the Chairperson of the Commission shall determine the respective 
2 
organizational structure and staffing pattern of the Department and the Commission 
3 
in accordance with the revised compensation and position classification system 
4 
subject to the evaluation and approval of the Department of Budget and Management 
5 
and in compliance with the civil service laws, rules and regulations and other relevant 
6 
laws.  
7 
 
8 
SEC. 38. Transfer of Rights and Functions. – The Department shall, by virtue of 
9 
this Act be subrogated to all the rights and assume all the functions of the government 
10 
agencies and units whose powers and functions have been subsumed, absorbed, 
11 
transferred or attached to the Department. The Commission shall also, by virtue of 
12 
this Act, be subrogated to all the rights, and assume all the functions, of the Water 
13 
Utilities Division of the NWRB, the regulatory offices of MWSS and LWUA, the 
14 
regulatory units of all special economic zones and all other government agencies and 
15 
units whose powers and functions have been transferred to the Commission in 
16 
accordance with the rules and regulations of the Civil Service Commission (CSC). 
17 
 
18 
The transfer of powers and functions to the Department or the Commission of 
19 
the concerned agencies as herein provided for, shall be deemed completed within 
20 
twelve (12) months after the effectivity of this Act. All agencies transferred, subsumed 
21 
and attached to the Department or Commission shall continue to function under their 
22 
present mandates until the six-month transition period mandated under this Act shall 
23 
have lapsed. The transfer of powers and functions shall include all applicable funds, 
24 
personnel, records, property and equipment, as may be necessary. The heads of the 
25 
affected agencies shall continue to serve until replaced. 
26 
 
27 
All rights and functions of the affected agencies are hereby transferred to and 
28 
assumed by the Department or Commission and shall be acted upon in accordance 
29 
with the rules and regulations of the Commission on Audit and other pertinent laws, 
30 
rules, and regulations. 
31 
 
32 
Performance audit of all water-related agencies and institutions, including LWUA 
33 
and water districts, MWSS, MWSS-RO and its concessionaires, LGU-run utilities, 
34 
Tourism Infrastructure and Enterprise Zone Authority, Philippine Economic Zone 
35 
Authority, Bases Conversion and Development Authority, Subic Bay Metropolitan 
36 
Authority, DILG, and NIA, shall be conducted by the Department. 
37 
 
38 
SEC. 39. Absorption, Separation or Retirement from Service of Employees of the 
39 
Subrogated Agencies. – The current employees of all government agencies and units 
40 
whose powers and functions have been transferred to, absorbed or subsumed by the 
41 
Department or Commission shall enjoy security of tenure, in accordance with their 
42 


 
47 
staffing pattern and the selection process as prescribed under RA 6656 or the 
1 
Government Reorganization Law. Employees opting to be separated from the service 
2 
as a consequence of the consolidation, and reconstitution under the provisions of this 
3 
Act shall, within one (1) month from their separation or phase out from the service, 
4 
receive separation benefits in accordance with existing laws, and those who are 
5 
qualified to retire shall be allowed to retire and be entitled to all benefits under existing 
6 
retirement laws. 
7 
 
8 
 
9 
 
10 
CHAPTER X 
11 
FINAL PROVISIONS 
12 
 
13 
SEC. 40. Applicability of Ease of Doing Business Law. – The prescribed 
14 
processing time provided under Section 9(b) of RA 11032 shall be applicable to all 
15 
agencies and LGUs covered under this Act, particularly on accessing government 
16 
services. 
17 
 
18 
SEC. 41. Appropriations. – The amount necessary for the initial implementation 
19 
of this Act shall be charged against the current year’s appropriations of the agencies, 
20 
entities, divisions, sections or units subsumed or transferred to the Department. 
21 
Thereafter, such amount shall be included in the annual General Appropriations Act. 
22 
 
23 
SEC. 42. Water Trust Fund. – There is hereby created a Water Trust Fund in the 
24 
Bureau of Treasury sourced from raw water pricing, permit fees, registration fees, 
25 
supervision and regulation enforcement fees, filing fees, testing fees, payments for 
26 
ecosystem services, and other service income from the use of water resources. The 
27 
Trust Fund shall be administered by the Department. The annual levies, and 
28 
reasonable fees and surcharges as may be necessary for achieving the purposes, 
29 
powers and functions of the Commission under Section 22(f) of this Act shall also be 
30 
remitted to the Water Trust Fund. Proceeds from the trust fund shall be utilized for 
31 
water development, water sanitation and waste water treatment and management, 
32 
and water sustainability programs and projects authorized under this Act: Provided, 
33 
That a maximum of ten percent (10%) of the total proceeds generated from raw water 
34 
extraction and all payments for ecosystem services shall be given as share of the 
35 
concerned local government unit or indigenous peoples (IP) community who own the 
36 
specific areas or land where the raw water was sourced: Provided, further, That the 
37 
Department shall prescribe standards for programs and projects where proceeds 
38 
from payments for ecosystem services shall be utilized. 
39 
 
40 
SEC. 43. Implementing Rules and Regulations. – Upon the effectivity of this Act, 
41 
the Department and the Commission, as may be applicable, as well as NEDA, DBM, 
42 


 
48 
DENR, CSC, and the National Commission on Indigenous Peoples in consultation with 
1 
concerned government agencies shall: 
2 
 
3 
a. Promulgate the rules and regulations of the Department and the 
4 
Commission necessary for the effective implementation of this Act within 
5 
one hundred twenty (120) days after its effectivity; and 
6 
 
7 
b. Submit to the DBM the Department’s and the Commission’s budget for 
8 
fiscal year following the promulgation of its implementing rules and 
9 
regulations; and implement the training of the personnel of the Department 
10 
and the Commission. 
11 
 
12 
SEC. 44. Mandatory Review of the Implementation of this Act. – The Department 
13 
and the Commission shall conduct a review of the implementation of this Act at the 
14 
end of the fifth (5th) year from the date of its effectivity and submit a report to 
15 
Congress. 
16 
 
17 
SEC. 45. Separability Clause. – If any reason, any portion or provision of this Act 
18 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby 
19 
shall continue to be in full force and effect. 
20 
 
21 
SEC. 46. Repealing Clause. – 
22 
 
23 
a. The following provisions are hereby repealed:  
24 
 
25 
1. Section 3(h) and Section 12 on the provision with respect to fixing of 
26 
water rates and sanitation service fees, Section 3 (n) on the provision 
27 
with respect to regulation of waterworks and deep wells, and Section 
28 
3 (p) on the provision with respect to regulation of waterworks and 
29 
sanitation systems in privately owned subdivisions of RA 6234 
30 
entitled “An Act Creating The Metropolitan Waterworks And 
31 
Sewerage System And Dissolving The National Waterworks And 
32 
Sewerage Authority, And For Other Purposes,” as amended; 
33 
 
34 
2. Section 62, 63, and 66 of Title III on Local Water Utilities 
35 
Administration Law of Presidential Decree No. 198 otherwise known 
36 
as the Provincial Water Utilities Act of 1973, as amended by Letter of 
37 
Instruction No. 700, series of 1978, Letter of Instruction No. 744, 
38 
Series of 1978, EO 124, Series of 1987, EO 123, Series of 2002, and 
39 
EO 860, Series of 2010, on the regulation of water districts; 
40 
 
41 


 
49 
3. Section 1 of EO 124-A Series of 1987, amending EO 124, dated 30 
1 
January 1987, Reorganizing the Department of Public Works and 
2 
Highways, Redefining Its Powers and Functions, and For Other 
3 
Purposes on reorganizing the National Water Resources Council into 
4 
the National Water Resources Board; 
5 
 
6 
4. EO 510 series of 2006 creating the RBCO, and EO 516 series of 2009 
7 
declaring the RBCO under the DENR as lead government agency for 
8 
the 
integrated 
planning, 
management, 
rehabilitation, 
and 
9 
development of the country’s river basins; and 
10 
 
11 
5. EO 22, Series of 2023 creating the Water Resources Management 
12 
Office of the DENR. 
13 
 
14 
b. The following provisions are hereby amended accordingly: 
15 
 
16 
1. Section 3 paragraph 3 Commonwealth Act No. 146, as amended, 
17 
pertaining to all cases involving the fixing of rates; 
18 
2. Section 154, Article V, Chapter I, Title One, Book II of RA 7160, as 
19 
amended, otherwise known as the “Local Government Code of 1991”, 
20 
and its implementing rules and regulations on the power of the LGUs 
21 
to fix the rates of water utilities owned, operated and maintained by 
22 
them within their jurisdiction is hereby repealed or modified 
23 
accordingly; 
24 
 
25 
3. Section 13(b) on the regulation of enterprises within the Economic 
26 
Zone under RA 7916 as amended, otherwise known as “The Special 
27 
Economic Zone Act of 1995”; 
28 
 
29 
4. Section 69 of RA 9593, otherwise known as “The Tourism Act of 
30 
2009”, and its implementing rules and regulations which mandate the 
31 
Tourism Infrastructure and Enterprise Zone Authority to grant 
32 
franchises, supervise the operation of public utilities, and register, 
33 
monitor and regulate enterprises within Tourism Enterprise Zones, 
34 
are hereby repealed or modified accordingly; 
35 
 
36 
5. Sections 7 of RA 9275, transferring the administration of the NSSMP 
37 
from the DPWH to the Department; 
38 
 
39 
6. Article 3(d) and Chapters VII and VIII of PD 1067 pertaining to the 
40 
enforcement of the Water Code; 
41 
 
42 


 
50 
7. Section 15 (Conditions in Permits) of the Implementing Rules and 
1 
Regulations (IRR) of PD 1067; 
2 
 
3 
8. Section 3.2(b) EO 149, Series of 1993 transferring the Laguna Lake 
4 
Development Authority from the Office of the President to the DENR; 
5 
and 
6 
 
7 
9. EO 168, Series of 2022, which transferred the National Irrigation 
8 
Administration from the Office of the President to the DA. 
9 
 
10 
All 
other 
laws, 
presidential 
decrees, 
executive 
orders, 
presidential 
11 
proclamations, rules and regulations, or parts thereof which are inconsistent with the 
12 
provisions of this Act are hereby repealed or amended accordingly. 
13 
 
14 
SEC. 47. Effectivity. – This Act shall take effect fifteen (15) days after its 
15 
publication in the Official Gazette or in at least two (2) national newspapers of general 
16 
circulation. 
17 
 
18 
Approved, 
19 
 
20