NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILPPINES 
First Regular Session
)
)
)
SENATE
s. No. 102
TV
of tl)P feefn-laiD
*22 JUL ~7 P2 31
R!'CFi,?L;)BV;
Introduced by Senator Grace Poe
AM ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOUCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR 
MANDATE, POWERS AND FUNCTIONS, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is a water rich country. The Philippines has total annual 
renewable water resources of 479 billion cubic meters (m3). This Is equivalent to an 
annual per capacity availability of 6,100 m3, which is twice that of the rest of Asia 
and six (6) times the global scarcity threshold of 1,000 m3.
However, many Filipinos experience deprivation of affordable, safe drinking 
water and a working sanitation system despite our abundant freshwater sources. 
The Department of Environment and Natural Resources once stated that the 
government "...still scrambles to avert a water crisis during the summer season or 
when the country experiences the El Nino phenomenon." This was most recently 
seen In the water crises of March 2018, which caused shortages throughout the east 
zone of Metro Manila, and of March 2019, which cut off the water supply for about 
ten thousand households across Metro Manila.
The Philippines also lacks a strong liquid In-liquid out system. This means that 
even if households are serviced with clean drinking water, a minute number receive 
adequate sanitation and sewerage services. This leads to severe cases of


leptospirosis, dengue, typhoid, and related tropical and water-borne illnesses. About 
31% of illnesses in the country are water-related due to a lack of clean drinking 
water supply and efficient sanitary facilities.
This perennial problem has seriously affected the lives of our citizens in terms 
of health, sanitation, food security, and livelihood, in addition to negatively impacting 
the environment. This particularly impacts the poor, who not only have the worst 
access to water but are also usually compelled to pay more for it.
The lack of sufficient, safe, acceptable, accessible, affordable drinking water 
and sanitation is not unique to the Philippines. However, as the World Water Council 
has repeatedly stated. It is Incumbent on each country to push for strong standards 
within its government and contribute to global governance on the issues of water 
and sanitation.
There are many water-related laws in the Philippines. However, their 
enforcement Is weak and the water sector is beset with problems including poor 
database and weak cooperation among water agencies, regulatory bodies and local 
government units (LGUs). There are currently four (4) major economic regulatory 
agencies for water: the National Water Resources Board (NWRB), the Local Water 
Utilities Administration (LWUA), LGUs, and national agencies which include Industrial 
Zones and the Metropolitan Waterworks and Sewerage System (MWSS).
The regulatory framework for water has many overlaps, and economic 
regulations are provided under a number of different arrangements which result in 
the framework's instability and fragmentation. Such fragmentation has had 
significant Implications in the effective and adequate delivery of water and sanitation 
services in the country. Because there is no lead agency in the water resource 
sector, the different coordination systems, functions and jurisdictions of the various 
agencies have made it impossibly hard for water and sanitation to be collectively 
managed. Thus, the establishment of a unified agency that would focus on water, 
sewerage and sanitation is certainly very important.


This bill seeks to rationalize the economic as well as administrative regulation 
of water utilities through an independent, quasi-judicial body called the Water 
Regulatory Commission. Among Its functions are to set the policy for water supply, 
sewerage and septage management; issue licenses; set, review and approve rates; 
review and suspend contracts; initiate investigations on erring officials through its 
quasl-judiclal nature; review and revoke issuances, memoranda and the like, that 
are not in accordance with the spirit of the Commission, and ensure that the welfare 
of consumers are prioritized.
Similarly, the bill creates a new government agency called, the Department of 
Water Resources which shall be the primary policy, planning, coordinating, 
implementing, monitoring, and administrative entity of the executive branch of the 
government. It shall also be responsible for the comprehensive and integrated 
development and management of the water resources of the Philippines, and their 
optimal allocation among competing uses, towards achieving universal access to 
safe, adequate, and affordable water supply, sanitation, and septage services.
To live In a community that is clean, free from human waste, and abundant 
with safe and affordable drinking water Is an utmost human right, so much so that 
the United Nations General Assembly explicitly recognized the Right to Water and 
Sanitation through UN Resolution 64/292 in 2010. To ensure Filipinos the benefit of 
this most fundamental human right, the urgent approval of this bill is earnestly 
sought.
^ jf GRACE FOE


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILPPINES 
First Regular Session
)
)
)
SENATE
S. No. 102
§>enste
of tijc
‘22 JUL-7 P2 31
RECEIVED BY:
Introduced by Senator Grace Poe
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOUCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR 
MANDATE, POWERS AND FUNCTIONS, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembied:
CHAPTER I
INTRODUCTORY AND GENERAL PROVISIONS
1 
Section 1. Short Tide.- This Act shall be known as the "National Water
2 
Resource Management Act"
3 
Sec. 2. Declaration of Policy.-
4 
a. The State recognizes that water is fundamental to individual life, health, and
5 
dignity, and that every person has a right to access safe and clean water for
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personal and domestic use;
7 
b. The State affirms that the right of all Filipinos to safe and clean drinking water
8 
and sanitation is essential to the full enjoyment of life and all human rights
9 
and hence, the attainment of a nationwide water supply and sanitation
10 
services at reasonable rates must be pursued in an orderly, rational, efficient,
11 
and dynamic manner;
12 
c. The State emphasizes that water is a public good essential subject to
13 
conflicting forms of economic, agricultural, and industrial activities, and is


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thus a scarce resource whose use must be carefully regulated to prevent
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resource depletion and to ensure Its availability to future generations;
3 
d. The State also maintains that water is indispensable to the existence and
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sustainability of natural ecosystems, and as such its use must neither
5 
endanger the balance and health of the environment nor compromise the
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rhythm and harmony of nature;
7 
e. The State further maintains that water resources are interconnected with
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climate, soil condition, land use and land cover, forest cover, and other
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natural resources. As such, the management of water will require inter-
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sectoral and Inter-agency collaboration as well as harmonization of laws,
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policies, institutions and stakeholders; and
12 
f. Finally, while the State maintains that all water resources remain under Its full
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ownership, control, and supervision, it emphasizes that it may enter Into
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arrangements with the private sector, as well as with civil society and
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community-based organization, on the basis of beneficial use, to ensure the
16 
efficient and affordable delivery of water supply, sanitation, and septage
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services to end-users.
18 
In accordance with these precepts, it is hereby declared the policy of the
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State to provide for the rational, evidence-based, and integrated management of all
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water resources in the country to ensure universal access to safe, 3deqi«ate, and
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affordable water supply, sanitation, and septage services, through a policy and
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regulatory regime that encourages Innovation and responsible private sector
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participation, while ensuring ecological preservation and environmental
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sustainability.
25 
Sec. 3. Definition of Terms.- The following terms are hereby defined as
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follows:
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a. Bulk water supplier - refers to any entity, natural or juridical, whether public
28 
or private, supplying or intending to supply large quantities of raw or treated
29 
water to buyers who will use it for own consumption, such as industrial
30 
companies, or for retail distribution to consumers such as Water Districts or
31 
subdivisions managing their own distribution network;


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b. Flood Control- refers to methods, acts, and protocols to be observed in order
2 
to prevent and reduce the detrimental and catastrophic effects of flood waters
3 
which include sediment-laden or turbid flows, and hyper-concentrated flows
4 
or debris flows;
5 
c. Flood Risk Management or FRM - refers to such acts of defining and
6 
determining the appropriate methods, acts and protocols aimed at preventing
7 
and reducing the risk of incurring loss of both life and property due to flood
8 
waters. Flood risk management consists of a cycle of prevention, mitigation,
9 
adaptation, preparedness, and early warning, and, response and recovery.
10 
The elements of FRM include: integrating land-use planning and coastal zone
11 
management into water management; adopting a holistic approach so that
12 
FRM is part of wider risk or multi-hazard management of earthquakes,
13 
landslides, and storm surges; managing risk and uncertainty as a whole so it
14 
is not only hydrological uncertainties but also social, economic, and political
15 
uncertainties in view of the human behavior and cultural dimensions of FRM;
16 
d. Gender Equality- refers to the principle of asserting the equality of men and
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women and their right to enjoy equal conditions realizing their full human
18 
potentials to contribute to and benefit from the results of development, and
19 
with the State recognizing that all human beings are free and equal in dignity
20 
and rights;
21 
e. Infrastructure and public works - refer only to wholly or primarily water-
22 
related projects and shall not incorporate projects that do not otherwise fail
23 
within the purview of the objectives, powers, and duties of the Department of
24 
Water Resources (DWR);
25 
f. Integrated Water Resource Management or IWRM - refers to a systematic,
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collaborative and multi-stakeholder process which promotes the coordinated
27 
development and management of water, land, and related resources within
28 
geophysical boundaries in order to maximize the resultant economic and
29 
social welfare in an equitable manner and without compromising the
30 
sustainability of vital ecosystems;
31 
g. Levels of water supply - refer to the following:


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1. Level I or the point source is a protected well or a developed spring
2 
with an outlet but without any distribution system, generally adaptable
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for rural and upland areas where the houses are thinly scattered and is
4 
a facility which usually serves an average of 15 households.
5 
2. Level II or the communal faucet system or stand posts is a system
6 
composed of a water source, a reservoir, a piped distribution network,
7 
and communal faucets where one faucet serves 4 to 6 households and
8 
is generally suitable for rural and urban fringe areas where houses are
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clustered densely to justify a simple piped system.
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3. Level III or the waterworks system or individual house connections is a
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system with a water source, a reservoir, a piped distribution network
12 
and household taps, suitable for densely populated urban areas.
13 
h. License - refers to the Water Supply and/or Sanitation Services Operating
14 
License that the Water Regulatory Commission (WRC) is authorized to grant
15 
and issue to Service Providers;
16 
i. Licensee - refers to the Service Provider to whom a License is granted or
17 
Issued by the WRC;
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j. Missionary Water- refers to water supply or services to areas that have no
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existing safe water supply and services due to geographic limitation or
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absence of economic and market viability;
21 
k. Nationai Water Resources Management Framework Plan or NWRMFP - refers
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to a policy document that incorporates a framework to guide the development
23 
and management of all the country's water resources in the Philippines; the
24 
general strategies to be pursued to ensure the sustainability of the resource
25 
and work towards the water security; and provides top-leve! direction on the
26 
utilization of existing water resources iri line with national development plans,
27 
policies, and programs. The plan shall also include a water infrastructure
28 
roadmap for all waters of the country as well as provide general guidance on
29 
how these shall be financed within an integrated financing framework that
30 
can draw on public, private and international development finance. The plan
31 
shall be reviewed at the start of every new presidential administration to
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ensure its alignment with changing times;


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I. Regulatory Units - refer to the regulatory offices established under this Act to
2 
issue Licenses authorizing the operation of Water Supply and Sanitation
3 
Services, and provide, review, determine, fix, and approve water and
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sewerage tariffs, rates and charges that Licensees may impose;
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m. River basin - refers to an area of land drained by a stream or body of fixed
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water and Its tributaries having a common outlet for surface run-off;
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n. River Basin Organization or RBO - refers to multi-stakeholder organizations
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which plan, coordinate, and monitor activities within a river basin cluster;
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0. Sanitation - refers to the provision of facilities and services for the safe
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management of human excreta from the toilet to containment and storage
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and treatment onsite or conveyance, treatment and eventual safe end use or
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disposal, and includes the safe management of solid waste and animal waste;
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p. Sediment management- refers to control of sediment erosion and deposition
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in rivers, reservoirs, and coastal zones through non-structural and structural
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measures and control works;
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q. Sustainable Development Goals or SDGs refer to the universal call to action to
17 
end poverty, protect the planet, and ensure that all people enjoy peace and
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prosperity by 2030 adopted by all United Nations Member States In 2015;
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r. Septage- refers to sludge produced on individual onsite wastewater disposal
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systems, principally septic tanks and cesspools/
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s. Septage Management- refers to the provision of proper collection, treatment,
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and disposal of septage;
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t. Service Area - refers to the area covered by the water distribution system,
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sewerage, and septage management services/
25 
u. Service Provider- refers to any entity, natural or juridical, whether i^rivate or
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public, providing or intending to provide levels II & III water supply, including
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bulk water suppliers, sewerage, septage treatment, and disposal services for
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domestic, residential, industrial, or commercial use;
29 
V. Sewage - refers to water-carried waste in solution or suspension including
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sanitary waste (waste products of normal living), commercial waste, industrial
31 
waste, agricultural waste, and surface runoff conveyed by a sewerage system


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for treatment or disposal. For the purposes of this Act, the definition of
2 
septage shall be included in the use of sewage/
3 
w. Sewerage - refers to any system or network of sanitary pipelines, ditches,
4 
channels or conduits including pumping stations, lift stations and force mains,
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service connections including other constructions, devices or appliances
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appurtenant thereof, which includes the collection, sanitary piping transport,
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pumping and treatment of water-borne human or animal waste removed from
8 
residences, buildings, institutions and industrial and commercial
9 
establishments to point of sewage treatment plant disposal;
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X. Sewers- refer to pipes or such other works or structures which are built and
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constructed to carry, transport, and dispose sewage/
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y. Social inclusion - refers to the process of improving the terms for
13 
disadvantaged individuals and groups to take part in society;
14 
z. Tariffs - refer to such amounts which may be charged by licensees of water
15 
supply and/or sanitation services for their services based on principles,
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standards, and guidelines established by the DWR/
17 
aa. Water Demand Management or WDM - refers to any method whether
18 
technical, economic, administrative, financial, or social that will accomplish
19 
one or more of the following:
20 
1. Reduce the quantity or quality of water required to accomplish a
21 
specific task;
22 
2. Adjust the nature of the task or the way it is undertaken so that it can
23 
be accomplished with less water or with lower quality water;
24 
3. Reduce the loss in quantity or quality of water as it flows from source,
25 
through use, to disposal;
26 
4. Shift the timing of use from peak to off-peak periods; and
27 
5. Increase the ability of the water system to continue to serve society
28 
during times when water is in short supply.
29 
bb. Water District - refers to government-owned and controlled corporations
30 
organized under Presidential Decree No. 198, as amended, created primarily
31 
to acquire, install, operate, maintain and improve water supply and
32 
distribution systems for domestic, industrial, and municipal uses of residents


1 
and to provide, maintain, and operate waste water collection, treatment and
2 
disposal facilities within the boundaries of the district;
3 
cc. Water pollution - refers to any alteration of the physical, chemical, biological,
4 
or radiological properties of a water body resulting in the Impairment of Its
5 
purity or quality/
6 
dd. Water Resource - refers to water under the ground or groundwater, water
7 
above the ground such as surface water, run-offs, floods, stormwater and
8 
urban drainage, and treated wastewater, water in the atmosphere or rain
9 
water, and the waters of the sea within the territorial jurisdiction of the
10 
Philippines;
11 
ee. Water Resources Regions - refer to the contiguous clusters of river basins
12 
which are grouped together according to the hydrological boundaries,
13 
physiographic features, and homogeneity In climate, 'Whether or not
14 
straddling different local government units, for administrative purposes under
15 
the DWR;
16 
ff. Water Resources Regional Offices or WRROs refer to the field office of the
17 
Department which are to be established in accordance with the identified
18 
water resources regions in the country;
19 
gg. Water Service Providers or WSPs - refer to the water districts, any Local
20 
Government Unit (LGU)-run water utility, Barangay Waterworks and
21 
Sanitation Association (BWSA), Rural Waterworks and Sanitation Association
22 
(RWSA), cooperatives and private sector who provides water supply services
23 
to any given area;
24 
hh. Water supply service - refers to any activity comprising Levels I, II and III
25 
water supply including bulk suppliers, suppliers to subdivisions and other
26 
water service providers.
27 
CHAPTER II
28 
THE DEPARTMENT OF WATER RESOURCES
29 
Sec. 4. Establishment - To carry out the policy and objectives declared under
30 
this Act, there is hereby established the Department of Water Resources, hereafter
31 
referred to as "the Department", which shall be established within one hundred
32 
twenty (120) days after the effectivity of this Act.


1 
Sec. 5. Mandate and Objectives. - The Department shall be the primary
2 
policy, planning, coordinating, implementing, monitoring, and administrative entity of
3 
the Executive Branch of the government responsible for the comprehensive and
4 
integrated development and management of the water resources of the Philippines,
5 
and their optimal allocation among competing uses, towards achieving universal
6 
access to safe, adequate, and affordable water supply, sanitation, and septage
7 
services.
8 
Sec. 6. Powers and Functions. - The Department shall exercise the following
9 
powers and functions:
10 
I. Policy Making And Planning
11 
a) Ensure that Integrated Water Resources Management (IWRM) is
12 
adopted as the strategic framework for water management
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policymaking and planning in the country and coordinate the
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Implementation, promotion, revision and enhancement of IWRM plans;
15 
b) Formulate policies, strategies, and targets in coordination with other
16 
relevant agencies and stakeholders to meet the goals and objectives
17 
for water resource sustainability and protection, water allocation and
18 
management, water supply and sanitation, water quality, irrigation,
19 
hydropower, flood control, stormwater, and urban drainage;
20 
c) Formulate and develop policies and strategies to promote universal
21 
access to safe, adequate, affordable, and sustainable water supply,
22 
and improved sanitation services for all Filipinos;
23 
d) Establish guidelines and standards for quality drinking water and
24 
sanitation;
25 
e) Develop and regularly update a comprehensive and integrated National
26 
Water Resources Management Framework Plan (NWRFP) and ensure
27 
its integration Into existing land use plans, within the context of a
28 
National Physical Framework Plan, to ensure the harmonization 
of
29 
planning of water, 
land, subsurface, and air resources;
30 
f) Review, approve, and provide oversight over all water-related
31 
development plans and programs of any agency or local government
8


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unit (LGU) within the context of the National Water Resource 
Management Framework Plan, and overall national plans and program;
g) Assist and provide the National Economic and Development Authority 
(NEDA) with the required data and input from and for the water sector 
in the formulation of the country's short-term and long-term strategic 
development plans and actions, and recommend the adoption of 
general policies and guidelines for water resources development by the 
NEDA Board;
h) Strengthen and coordinate policy making and planning for flood 
management, integrated with stormwater or urban drainage and 
appropriate retention or retarding basins in order to harvest and reuse 
water, and to plan against, prevent, and minimize the detrimental and 
catastrophic effects of flooding;
i) Develop and implement. In coordination with other relevant agencies 
and stakeholders, effective codes, standards, benchmarks, and 
reasonable guidelines to ensure the safety of all public, and private 
water structures in the country, and assure efficiency and proper 
quality in the construction of water, sanitation, irrigation, hydropower, 
flood control and drainage infrastructure;
j) Ensure that the planning and design of water infrastructure considers 
the highest efficiency and most appropriate technology and quality, in 
accordance with national development objectives;
k) Ensure that gender equality, social inclusion, environmental protection, 
climate resiliency and disaster risk reduction are integrated Into any 
water resources management planning, policy making, and the design 
and construction of water Infrastructure;
l) Act as the lead agency in ensuring the effective implementation of all 
laws and implementing rules and regulations on water resources, 
including but not limited to the following:
i. Republic Act No. 9275, otherwise known as the "Philippine Clean 
Water Act of2004']


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II.
ii. Presidential Decree No. 1067, otherwise known as "The Water 
Code of the Philippines')
ill. Sections 9, 10, 11, 12 & 13, Chapter 11 of Presidential Decree 
No. 856, otherwise known as the x^Code on Sanitation of the 
Philippines')
m) Review all water laws and implementing rules and regulations In the 
preceding section, and to propose amendments thereof to Congress;
n) Enter any property of public dominion or any private land, building or 
enclave, whether inhabited or not, or authorize a representative 
thereof, for the purpose of conducting hydrologic surveys and 
investigations, including assessing and evaluating the conditions of 
water facilities installed, and determining compliance with water laws 
and standards, evaluating the conditions of water facilities installed, 
and determining compliance with the NWRMFP, LWRMP, and other 
laws and regulations on water resource management as defined by this 
Act; and
0) Issue and promote rules and regulations as may be necessary to 
implement and enforce its powers and functions under this Act;
Data Collection and Evidence Gathering
a) Establish, operate, and maintain a centralized water resources data 
center necessary for the scientific survey and appraisal of surface and 
ground water potentials of the country and determine the annual 
renewable water available per available water resources region;
b) Effect Inter-sectoral, inter-agency and inter-departmental coordination 
on all aspects of data gathering for water resources development 
planning and compel submissions of statistics and data on water 
management with the aim of operationalizing the IWRM framework;
c) Undertake river basin survey, inventory and appraisal of water and 
related resources and develop comprehensive basin-wide plans of 
storage, retardation, and control to maximize conservation and 
multipurpose use of water in the basin;
10


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III.
d) Collect, regularly update, monitor, and analyze water resources data 
including climatology, and hydrologic and other water-related data;
e) Conduct continuing hydrologic and hydrometeorological surveys and 
studies of the country's renewable water supply, and establish, 
operate, and maintain observation station networks with a view 
towards formulating long-term policies to balance the 
sustainability and optimal multiple use of water resources, defining 
the hydrologic boundaries of basins of the existing water supply 
sources and developing or updating and implementing countrywide 
comprehensive basin-wide master plans;
f) Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and 
appraisal of surface and groundwater potentials of the country, and 
determine the annual renewable water available per water resources 
region;
g) Develop and continuously update a computerized decision support 
system that incorporates data management system relating to 
acquisition and database, model base in terms of physical design, 
planning and decision models, and user-friendly Interface concerning 
graphical and visualization tools; and
h) Promote Philippine participation in information sharing and education 
around best practices in the international movements to achieve 
universal access to safe water and improved sanitation and the 
integration of water, energy, food security and environment.
Water Resource Management and Allocation
a) Issue and enforce guidelines and rules and regulations on the 
following:
i. 
Abstraction, diversion, and development of the country's water 
resources;
ii. 
Equitable and optimal allocation of the country's water resources 
for domestic and municipal water supply, irrigation, sanitation.
11


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III.
IV.
V.
irrigation, hydropower, navigation, fisheries, livestock raising, 
industrial, recreational, and other purposes;
Determination and granting of water rights, including 
adjudication In cases of conflicting uses, amending for this 
purpose. Act No. 2152, otherwise known as "The Irrigation Act", 
and other laws relating to the appropriation and utilization of 
surface and groundwater: Provided, that the adjudication of 
conflicting water rights shall be exercised by the Water 
Adjudication Board;
Such other coherent water protocols as may be necessary, 
including the operating rules of all existing and future water 
Infrastructure, legal and technical mechanisms for intra-sectoral 
transfers and the standards of beneficial and priority uses of 
water in times of crisis and national emergencies;
Guidelines for the determination of costs and fees of all water 
rights, tariffs, permits, and licenses through a science-based 
method which will accurately reflect the current or future 
projected state of the water resource to be allocated: Provided, 
that the actual methodology for setting rates and tariffs shall be 
the exclusive power of the Water Regulatory Commission; 
Methods and standards for basic data collection and project 
identification, formulation and planning, and appropriate 
sanctions to be imposed for non-compliance;
Standards for water quality, in particular drinking water, as well 
as sanitation, septage, and water pollution; and 
Treatment and utilization of flood control, rain-water run-off, 
stormwater, and urban drainage;
b) Exercise original jurisdiction over ail disputes relating to appropriation, 
utilization, exploitation, development, control, conservation and 
protection of all water resources, the adjudication of which shall be 
enforced by the Water Adjudication Board;
VI.
VII.
VIII.
12


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IV.
c) Regularly review regulations prescribed by any government agency 
pertaining to water use, exploitation, development, and conservation 
or protection of waters, water resources, and watershed or basin areas 
with respect to this Act;
d) Impose fees or charges, as may be deemed necessary for water 
resources conservation and protection, such as:
i. 
Polluter's Fee, which shall be based on the net waste load 
depending on the wastewater charge formula pursuant to 
Republic Act No. 9275;
ii. 
Raw water price, which shall take into account, among others, 
the scarcity of water; and
lii. Appropriate structures for payment of environmental services;
e) Deputize LGUs to collect the national fees or charges for resource 
regulation within their respective jurisdictions;
f) Conduct and/or promote special studies and research on water 
economics and other water resources development and management 
issues and concerns such as climate change, weather modification, 
flood monitoring and modeling, environmental quality, and 
desalination; and
g) Raise public awareness through information, education, and 
communications programs, and build capacities for informed 
participation In water resources management at the national and river- 
basin level.
Administration and Management
a) Develop guidelines including rules of partnership among the 
Department, field offices of national government agencies, LGUs, and 
other stakeholders, and facilitate the establishment of multi- 
stakeholder river basin organizations (RBOs) per river basin, and 
strengthen and support existing RBOs and monitor their activities;
b) Develop materials for capacity building and training on RBO 
development and conduct training and workshops for prospective 
RBOs;
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6
7
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29
30
31
32
V.
c) Provide technical assistance to water users including farmers, 
communities, and LGUs and other water sen/ice providers (WSP) 
whether directly or in coordination with other agencies on all aspects of 
Integrated water resources management;
d) Conduct a performance audit of all water-related agencies and 
institutions, including but not limited to The Local Water Utilities 
Administration (LWUA) and water districts, MWSS, MWSS-RO and its 
concessionaires, LGU-run utilities. Tourism Infrastructure and 
Enterprise Zone Authority, Philippine Economic Zone Authority, Bases 
Conversion and Development Authority, Subic Bay Metropolitan 
Authority, DILG, and NIA, shall be conducted by the Department;
e) Respond to consumer complaints, and ensure the adequate promotion 
of consumer interests;
f) Deputize agents, whether from the public or private sector, to assist in 
the performance of any of the powers and functions of the 
Department;
g) Appoint, hire and maintain adequate staff and personnel, advisers 
and/or consultants with suitable qualifications and experience, as 
necessary, and in accordance with the Government Procurement Law.
Coordination
a) Coordinate and integrate water resources development activities of the 
country within the context of national plans and policies for social and 
economic development;
b) Coordinate with other government agencies, universities, academe, 
and private professional groups in all aspects of data gathering, the 
conduct of special studies and research on all related aspects of water 
resources management and development such as climate change, 
environmental quality, desalination, and the development of operating 
strategies, procedures, and protocols with accompanying computerized 
decision tools for major water facilities;
c) Coordinate with the concerned and relevant agencies engaged in flood 
control, flood risk management, and drought risk management; and;
14


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4
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21 
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25
26
27
28
29
30
31
32
VI.
d) Coordinate proactively with local government units to ensure the 
integration of water resources development plans Into their 
comprehensive land use plans (CLUPs), Comprehensive Development 
Plans (CDPs) or Provincial Physical Framework and Development Plan 
(PPFDP): Provided, That no zoning and land use plan shall become 
effective and enforceable unless and until a certification of the 
integration of a water, sewage, and sanitation resource management 
plan has been issued by the Department. Should the Department have 
serious concerns affecting conservation and sustainability of water 
supply, such concerns must first be resolved by the Department and 
the concerned LGU and/or national agency: Provided further, that in 
the absence of such concerns, the concerned LGU and/or government 
agency may, ninety (90) days from the submission of its zoning and 
land use plan and after submitting to the Department a written notice 
of compliance with the provision, proceed with the implementation of 
its zoning and land use plan without prejudice to later integration of 
the water resource management plan for the locality.
Other Functions
a) Create, when necessary, water resource subsidiaries, instrumentalities, 
and entities to engage in water transmission, water distribution, waste 
water treatment and management, and sanitation in accordance with 
existing relevant laws, with the exception of the formation of new 
water district which shall remain under the Local Water Utilities 
Administration;
b) Enter into contracts, joint venture agreements or understanding, 
public-private partnerships, and memorandum of agreements or 
understanding, either domestic or foreign relating to investment and 
financing water-related projects, under such terms and conditions as 
the Department may deem proper and reasonable subject to existing 
laws;
c) Review existing guidelines appropriate for private sector participation 
in the water sector and make needed recommendations to the Public-
15


1 
Private Partnership (PPP) Center of NEDA and other concerned
2 
agencies to promote and enable more PPPs in the sector; and
3 
d) Exercise such other powers and functions necessary or incidental to
4 
the effective administration and management of the country's water
5 
resources.
6 
Sec. 7. Offices, Functions, and Personnel to be Completely Absorbed by the
7 
Department - In addition to the powers and functions enumerated above, the
8 
following offices are hereby abolished, and their respective powers and functions,
9 
and the corresponding personnel, funds and appropriations, records, equipment, and
10 
property shall be absorbed by the Department:
11 
a) The National Water Resources Board, whose mandate, powers, and functions
12 
are provided in Presidential Decree No. 424, with the exception of its water
13 
utility regulation units and functions, which shall be absorbed by the Water
14 
Regulatory Commission created under Chapter VI of this Act;
15 
b) The River Basin Control Office (RBCO) of the DENR whose mandate, powers
16 
and functions are found in Executive Order No. 510 and Executive Order No.
17 
816, as amended: ProvidedJ that the Department of Environment and Natural
18 
Resources (DENR) shall continue to have primary authority and responsibility
19 
for protecting the environment and managing the country's watersheds;
20 
c) The Manila Bay Task Force created under Administrative Order No. 16, s.
21 
2019, and the Manila Bay Coordinating Office (MBCO) of the DENR which was
22 
created by virtue of DENR Special Order 2011-01, which were created to
23 
implement the Writ of Continuing Mandamus issued by the Supreme Court in
24 
the case of Metro Manila Development Authority, etai, v. Concerned
25 
Residents of Manila Bay {QR. Nos. 171947-48, 18 December 2008 and 15
26 
December 2011);
27 
d) The Flood Control Management Cluster of the DPWH;
28 
e) The Water Supply and Sanitation Unit of the DILG;
29 
f) The Water Quality Management Section of the Environmental Management
30 
Bureau of the DENR;
31 
Sec. 8. Powers and Functions to be Transferred to the Department - The
32 
powers and functions of the following agencies, bureaus, and units and the
16


1 
corresponding personnel, funds and appropriations, records, equipment, and
2 
property are also hereby transferred to the Department:
3 
a) The powers and functions of the National Pollution Control Commission with
4 
respect to the adjudication of water pollution cases under Republic Act No.
5 
3931 entitled. An Act Creating the National Water and Air Pollution Control
6 
Commission, Presidential Decree 984 entitled Providing for the Revision of
7 
Republic Act No. 3931, Commonly Known as the Pollution Control Law, and
8 
for Other Purposes, particularly with respect to Section 6 letters (e),(f), (g),
9 
0)/ (k) and Republic Act No. 9275, which shall be exercised by the Water
10 
Adjudication Board;
11 
b) The powers and functions of the Mines and Geosciences Bureau (MGB) of the
12 
DENR to conduct hydrological surveys and groundwater mapping;
13 
c) The powers and functions of the Bureau of Design and Bureau of Research
14 
and Standards of the DPWH with regard to conduct of hydrologicai surveys
15 
monitoring of stream flow and other water data collection;
16 
d) The powers and functions of the DPWH with regard to the planning,
17 
programming, administration, monitoring, and management of the National
18 
Sewerage and Septage Management Program (NSSMP);
19 
e) The powers and functions of the DPWH with regard to the construction of
20 
water wells, rainwater collectors and springs under Republic Act No. 6716,
21 
otherwise known as 'An Act Providing for the Construction Of Water Wells,
22 
Rainwater Collectors, Development of Springs and Rehabilitation of Existing
23 
Water Wells in AH Barangays in the Philippines'*
24 
f) The powers and functions of the DOH with regard to drinking water quality, in
25 
particular the Philippine National Standards for Drinking Water of 2017 under
26 
DOH-AdminIstrative Order No. 2017-0010;
27 
g) The powers and functions of the Bureau of Soils and Water Management
28 
concerned with the utilization and management of water including rain-
29 
making projects;
30 
h) The powers and functions of the Tourism Infrastructure and Enterprise Zone
31 
Authority, under Section 5(c)(1) of Presidential Decree No. 564, s. 1974,
32 
otherwise known as the Philippine Tourism Authority Charter, Chapter IV,
17


1 
Subchapter IV-A, Section 69 (f) of Republic Act No. 9593, otherwise known
2 
as the " Tourism Act of 2009" with regard to the construction, acquisition,
3 
owning, lease, operation, and/or maintenance of dams, reservoirs, water
4 
distribution systems, and sewerage systems: Provided, that the power to set
5 
rates, tariffs, and charges shall be transferred to the Water Regulatory
6 
Commission;
7 
1) The powers and functions of the Bureau of Fisheries and Aquatic Resources of
8 
the Department of Agriculture (DA) with regard to the formulation of plans for
9 
the proper management, development and utilization of aquatic resources of
10 
the country; and
11 
j) The powers and functions of the Biodiversity Management Bureau of the
12 
DENR, with regard to the protection and conservation of natural wetlands
13 
such as lakes, marshes, swamps.
14 
Sec. 9. Organization. -The Department shall be comprised of the following:
15 
a) The Department Proper, which shall consist of the Office of the Secretary; the
16 
Offices of the Undersecretaries and the Assistant Secretaries; the Water
17 
Adjudication Board, the Bureaus; the Department Services; the Regional
18 
Water Resource Offices; and
19 
b) The attached agencies.
20 
Sec. 10. Secretary of the Department of Water Resources. - The authority
21 
and responsibility for the exercise of the mandate of the Department and for the
22 
discharge of its powers and functions shall be vested in the Secretary of the
23 
Department, hereinafter referred to as the Secretary, who shall be appointed by the
24 
President, subject to confirmation by the Commission on Appointments. The
25 
Secretary shall:
26 
a) Advise the President on the promulgation of executive or administrative
27 
orders, regulations, proclamations and other Issuances relative to matters
28 
under the jurisdiction of the Department;
29 
b) Establish the policies and standards for the effective, efficient, and economical
30 
operation of the Department pursuant to the President's guidelines;
31 
c) Advise the President on the status of water management and supply,
32 
recommend to the President the declaration of a state calamity in areas
18


1 
affected by water supply, and submit proposals to restore normalcy in the
2 
affected areas;
3 
d) Promulgate rules and regulations necessary to carry out the objectives,
4 
policies and functions of the Department;
5 
e) Exercise supervision and control over all bureaus and offices under the
6 
Department as well as its officers and personnel;
7 
f) Supervise all attached agencies and corporations in accordance with law;
8 
g) Create regional offices and such other ser\'ice units, bureaus, and divisions as
9 
may be necessary;
10 
h) Call upon and deputize any official, agent, employee, agency, or
11 
instrumentality of the national and local government for any assistance that it
12 
may deem necessary to carry out the purposes 
of this Chapter, subject 
to
13 
existing laws;
14 
i) Represent the Department in contracts, awards, and the like;
15 
j) Delegate authority for the performance of any power or function, as defined
16 
herein to officials and employees under his direction as deemed appropriate;
17 
k) Participate in meetings of the National Economic and Development Authority
18 
(NEDA), of which he shall be a member;
19 
I) Act as the Chairperson of the governing board of the agencies that were
20 
attached to the Department; and
21 
m) Perform such other duties and responsibilities as may be provided by law.
22 
Sec. 11. Office of the Secretary. - The Office of the Secretary shall be
23 
composed of the Secretary and his/her Immediate staff.
24 
Sec. 12. The Offices of the Undersecretaries. - The Secretary shall be assisted
25 
by not more than five (5) Undersecretaries, who shall be appointed by the President
26 
upon the recommendation of the Secretary. The Offices of the Undersecretaries shall
27 
be comprised of the Undersecretaries and their immediate staff.
28 
The Secretary is hereby authorized to delineate and assign the respective
29 
functional areas of responsibility of the Undersecretaries: Provided, that such
30 
responsibility shall be with respect to the mandate and objectives of the
31 
Department: Provided further, that no Undersecretary shall be assigned primarily to
32 
administrative responsibilities.
19


1 
Within his/her functional area of responsibility, the Undersecretary shall:
2 
a) Advise and assist the Secretary in the formulation and implementation of the
3 
policies, plans, programs, and projects of the Department;
4 
b) Supervise ail the operational activities of the assigned units for which the
5 
Undersecretary is responsible to the Secretary; and
6 
c) Perform such other functions deemed necessary as may be assigned or
7 
delegated by the Secretary to promote efficiency and effectiveness in the
8 
delivery of public services or as may be required by law;
9 
Sec. 13. Assistant Secretaries. - The Secretary shall be assisted by six (6)
10 
Assistant Secretaries to be appointed by the President of the Philippines upon the
11 
recommendation of the Secretary: one each for Planning and Policy Service, Decision
12 
Support System Service, Comptrollership and Financial Management Service, Legal
13 
and Legislative Service, and Administrative and Human Resources Management
14 
Service.
15 
Sec. 14. Qualifications of the Department Secretaryf Undersecretaries, and
16 
Assistant Secretaries. -
17 
a) No person shall be appointed Secretary, Undersecretary, or Assistant
18 
Secretary unless he/she possesses extensive knowledge of public
19 
administration and has a minimum of seven (7) years of experience In the
20 
administration of water, sanitation, irrigation, flood control, and drainage
21 
programs, preferably in a public agency;
22 
b) At least one (1) of the Undersecretaries and at least two (2) of the Assistant
23 
Secretaries shall be career officers;
24 
c) No officer, external auditor, accountant or legal counsel of any private
25 
company or enterprises primarily engaged in the water industry shall be
26 
eligible for appointment as Secretary, Undersecretary, or Assistance Secretary
27 
within two (2) years from his/her retirement, resignation, or separation
28 
therefrom.
29 
Sec. 15. The Water Resources Adjudication Board. - There is hereby created
30 
a Water Resources Adjudication Board, hereafter referred to as "the Board" under
31 
the Office of the Secretary. The Board shall exercise quasi-judicial powers granted to
32 
it under this Act.
20


1 
Sec. 16. Jurisdiction. - The Board shall exercise original jurisdiction over the
2 
following:
3 
a) All disputes relating to the appropriation, utilization, exploitation,
4 
development, control, conservation and protection of waters; and the
5 
compliance of water service provider with the rules and regulations set forth
6 
by the Department;
7 
b) Enforcement of agreements between water service providers;
8 
c) All cases concerning of water pollution under the following laws:
9 
1. Republic Act No. 3931 entitled. An Act Creating The National Water
10 
And Air Pollution Control Commission, Presidential Decree 984 entitled
11 
Providing For The Revision Of Republic Act No. 3931f Commonly
12 
Known as the Pollution Control Law, And For Other Purposes,
13 
particularly with respect to Section 6 letters (e),(f), (g), (j), (k); and
14 
2. Republic Act No. 9275;
15 
Sec. 17. Composition. -The Board shall be composed of the Secretary as the
16 
Chairperson, two (2) Undersecretaries as may be designated by the Secretary, and
17 
three (3) other representatives from other stakeholders to be designated by the
18 
Secretary as members.
19 
Sec. 18. Powers and Functions. -The Board shall have the following powers:
20 
a) Investigate and decide on complaints involving violations of this Act;
21 
b) Issue subpoena duces tecum and subpoena ad testificandum]
22 
c) Cite any person or party in contempt for refusal to appear, testify or comply
23 
with the lawful orders of the Adjudicatory Board in relation to any matter
24 
subject to Its investigation;
25 
d) Hear, receive evidence, and decide on cases falling within its jurisdiction;
26 
e) Promulgate Its own rules and procedures; and
27 
f) Exercise such other powers as may be necessary to carry out Its duties and
28 
responsibilities under this Act.
29 
Sec. 19. Orders and Decisions. - Every order or decision rendered by the
30 
Adjudicatory Board shall be In writing and shall state clearly and distinctly the facts
31 
and the law on which it Is based. The Adjudicatory Board shall decide each case or
32 
application within thirty (30) days following its formal submission for resolution. It
21


1 
shall publish and make available for public inspection all decisions and final orders In
2 
the adjudication of contested cases or applications.
3 
Sec. 20. Appeals Procedure and Prohibition Against Injunction. -
4 
a) The orders, rulings, and decisions of the Adjudicatory Board shall become
5 
final and executory after fifteen (15) days from receipt of such order, ruling,
6 
or decision, unless, prior to the lapse of this period, an appeal was made with
7 
the Secretary of Water Resources;
8 
b) All decisions where the penalty imposed Is a fine shall be immediately
9 
executory, except upon the filing of a bond equivalent to the fine imposed or
10 
as may be fixed by the Adjudicatory Board;
11 
c) No injunction may be issued by any court or administrative agency to restrain
12 
any proceeding before the Adjudicatory Board, or the implementation or
13 
execution of any order, ruling, or decision of the Adjudicatory Board, except
14 
on the basis of a question of law in a petition for certiorari brouqht before the
15 
Supreme Court.
16 
Sec. 21. Bureaus. -The Department shall have the following Bureaus:
17 
a) The Bureau of Water Quality Management shall exercise supervision and
18 
control over all aspects of water quality management to ensure the
19 
sustainability of the country's water resources and the protection of the
20 
environment, taking into account proper and Integrated treatment of
21 
freshwater and wastewater within the whole process. For this purpose, the
22 
Bureau shall exercise the following functions:
23 
1. Establish water quality guidelines for freshwater and coastal/marine
24 
waters as basis for classifying water bodies in the country. Specifically,
25 
develop water quality indices or composite metrics to measure of the
26 
quality status and health of natural water bodies in relation to
27 
ecological integrity and function;
28 
2. Establish effluent standards for point sources of pollution;
29 
3. Establish Internationally accepted procedures for sampling and
30 
analysis;
31 
4. Prepare an integrated water quality management framework;
22


1 
5. Prepare the ten-year water quality management plans for each water
2 
quality management area as part of the River Basin Master Plans and
3 
in support of the NWRMFP;
4 
6. Classify groundwater sources and prepare a national groundwater
5 
vulnerability map;
6 
7. Classify or reclassify all water bodies according to their beneficial
7 
usages using the established water quality guidelines established;
8 
8. Issue permits, clearances and similar instruments pursuant to the
9 
Clean Water Act of 2004;
10 
9. Collect the wastewater discharge fees for all permittees;
11 
10. Monitor the compliance of water discharge permittees with the effluent
12 
standards;
13 
11. Regularly monitor the water quality of major water bodies in the
14 
country and analyze the data to identify possible sources of pollution;
15 
12. Issue notices of violations and/or cease and desist orders for those
16 
found in violation;
17 
13. File the needed cases against violators with the Water Adjudication
18 
Board;
19 
14. Perform such functions and activities, as may be mandated by law,
20 
which are necessary for the effective performance of the
21 
abovementioned objectives
22 
b) The Bureau of Hood Control and Drainage shall plan and design flood control
23 
and drainage structures and facilities in accordance with technical standards,
24 
guidelines and manuals. For this purpose. It shall have the following duties
25 
and responsibilities:
26 
1. Formulate policy, strategies and programs on flood risk management in
27 
the context of integrated flood management (IFM) which Integrates
28 
water, land, coastal zone and multi-hazard management. In integrating
29 
land-use planning and water management, the Department should
30 
harmonize and synthesize plans to enable the sharing of Information
31 
between land-use planning and water management authorities. In
32 
integrating hazard management, a holistic approach should be adopted
23


1 
so that IFM should be part of a wider risk or multi-hazard management
2 
system such as earthquake, landslides, fire, tsunami, and other
3 
calamities of even gravity or similar nature;
4 
2. Integrate climate change and disaster risk reduction and management
5 
in policies and plans;
6 
3. Prepare master plans of flood management and drainage in river
7 
basins in coordination with the concerned water resources region and
8 
river basin organizations;
9 
4. Prepare master plans of urban drainage in cities/municipalities;
10 
5. Prepare feasibility studies of recommended measures in the master
11 
plans;
12 
6. Plan and design structural measures for flood control and drainage;
13 
7. Implement and/or collaborate with concerned agencies on the non-
14 
structural measures;
15 
8. Patrol and Investigate rivers Including the monitoring of stream flows;
16 
9. Conduct post-disaster investigation and evaluation and damage
17 
assessment of flood infrastructures after extreme events;
18 
10. Conduct research and development on water and sediment-related
19 
disasters;
20 
11. Develop design guidelines, criteria and standards on flood control and
21 
drainage structures;
22 
12. Provide technical assistance to other agencies, LCDs and other
23 
stakeholders;
24 
13. Advise the Secretary on declaring flood control areas and recommend
25 
guidelines for flood plain management plans in these areas; and
26 
14. Perform such functions and activities, as may be mandated by law,
27 
which are necessary 
for the effective performance of the
28 
abovementioned objectives.
29 
Sec. 22. The Bureau Directors. - The Bureaus of the Department shall be
30 
headed by a Bureau Director who shall be responsible for efficiently and effectively
31 
carrying out the functions of the Bureau concerned. The Bureau Director shall be
32 
assisted by one (1) Assistant Director.
24


1 
Sec. 23. The Department Services, - The Department shall have the following
2 
services:
3 
a) The Planning and Policy Service shall provide the Department with the
4 
capability to undertake water infrastructure development planning and
5 
programming, and shall exercise the following functions:
6 
1. Advise the Secretary on all matters relating to water resources
7 
planning;
8 
2. Assist the Undersecretary for Planning and Policy on all matters related
9 
to the specific functions of the position;
10 
3. Formulate strategies and priorities for water resources management
11 
and development consistent with national development objectives, and
12 
initiate or undertake relevant surveys for development planning;
13 
4. Develop and regularly update a comprehensive and integrated National
14 
Water Resources Management Framework Plan and eiisure its
15 
integration Into existing land use plans, within the context of a National
16 
Physical Framework Plan, to ensure the harmonization of planning of
17 
water, land, subsurface, and air resources;
18 
5. Coordinate river-basin planning following the integrated water
19 
resources management framework and the river-basin approach;
20 
6. Formulate or update existing River Basin Master or Comprehensive
21 
Plans which includes all aspects of water management and
22 
development such as water supply and sanitation, irrigation, flood
23 
control and stormwater or urban drainage, drought risk management,
24 
water resource development systems and other public water works
25 
projects. Including phasing of Implementation;
26 
7. Identity based on the river basin master plan; priority packages for
27 
water Infrastructure development per river basin including water
28 
supply, sanitation, irrigation, flood control and stormwater or urban
29 
drainage, drought risk management, water resource development
30 
systems, and other public works projects; package project proposals
31 
for funding and prioritize project implementation and the allocation of
25


1 
funds and other resources; and undertake or supervise and evaluate
2 
the conduct of feasibility studies and project preparation thereof;
3 
8. Evaluate and appraise ail regional and inter-regional Infrastructure
4 
water development plans and programs as to their feasibility and
5 
consistency with approved strategies and long and medium-term plans;
6 
9. Initiate regular Department-wide planning exercises and act as the
7 
secretariat thereof;
8 
10. Gather, analyse, and organize needed statistical data and information;
9 
11. Provide technical assistance related to its functions to the other
10 
services, bureaus and the regional offices as needed;
11 
; 12. Conduct of hydrologic and hydraulic surveys and assessments of
12 
surface waters;
13 
13. Develop general criteria and standards on project investigation,
14 
formulation, planning;
15 
14. Develop guidelines and standards on social inclusion in water resources
16 
management and ensure policies, programs, and plans are compliant
17 
with the gender and development framework of the government;
18 
15. Coordinate closely with PAGASA for rainfall and other climate data
19 
^ which shall be considered in the planning for water resources
20 
development and management and for various water infrastructure;
21 
and
22 
16. Perform such functions and activities, as may be mandated by law,
23 
which are necessary 
for the effective performance of the
24 
abovementioned objectives.
25 
c) The Decision Support System Service shall provide the Department with water
26 
resource management tools and computerized decision support system that
27 
incorporates data management system relating to acquisition and database,
28 
and model base in terms of physical, design, planning, and decision models
29 
Including services related to networking, data management, and Information
30 
and knowledge or learning management systems for administrative and non-
31 
technical support for the Department. It shall provide the Secretary timely
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5
6
7
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14
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20 
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23
24
25
26
27
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32
reports on the status of various Department projects and activities. For this 
purpose, it shall exercise the following functions:
1. Provide the Secretary the needed data and processed information to 
aid in policy and management decisions under the mandate of the 
Department;
2. Publish available real-time raw water data as well as verified or 
validated water data in print and/or electronic form, in tabular and 
graphical displays as time series and/or spatial data through the use of 
the internet;
3. Conduct and publish in print and/or electronic form, standard data 
analysis such as basic statistical analysis, trend analysis, analysis of 
runs, and cluster analysis;
4. Develop and continuously update water resource management, 
computerized decision support system (DSS) that incorporates data 
management system relating to acquisition and database, model base 
in terms of physical, design, planning and decision models, and user- 
friendly interface such as graphical and visualization tools. The DSS is 
composed of a measurement or data acquisition system; information or 
database management system; analytical and numerical models for 
design, planning, decision or evaluation purposes; and a user-friendly 
interface which includes graphical interface or visualization tools;
5. Develop and maintain specific models to include the following: long­
term cllmatologic and weather forecasting model; watershed models 
and river-flood plain models; groundwater models and coupled to 
surface water models; flood forecasting model for major rivers; 
optimization-simulation and/or management models for watershed 
conservation, conjunctive surface and groundwater use, irrigation 
scheduling, normal and emergency operations of multi-purpose 
reservoirs; and water quality and ecological models;
6. Develop and manage the management Information system and 
knowledge systems of the Department including the retrieval and 
processing of monitoring Information on all projects and activities of
27


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3
4
5
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7
8 
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10
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31
concern to the Secretary and the web portal, and conduct systems and 
process engineering, software development, software configuration 
management; develop and manage the Department's corporate 
database, unified database for water industry, data warehouse, other 
water information resources, library services and document 
management and archiving services; develop and manage the 
Department's ICT infrastructure and provide ICT-related services to the 
Department including computer networking and voice communications 
services and data exchange; manage the literacy and training services 
of the Department on various ICTs, knowledge management fools, and 
applications; and
7. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementloned objectives.
d) The Administrative and Human Resource Service shall provide the 
Department with services relating to human resources development, 
personnel, records, facilities maintenance, medical and dental, security and 
property and procurement services, and shall exercise the following functions:
1. Advise the Secretary on all matters relating to internal administration 
and human resources management;
2. Prepare and implement an integrated personnel development plan that 
shall include provisions for merit promotions, performance evaluation, 
job rotation, suggestions and incentive awards systems, and health 
and welfare services;
3. Provide services related to human resources training, education and 
development including manpower, career planning and forecasting, 
and development of indigenous training materials;
4. Develop, establish and maintain an efficient and cost-effective property 
procurement system and facilities and coordinate or otherwise 
interface with relevant agencies, whether government or private, for 
the purpose of developing or upgrading the system;
28


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5. Secure and maintain necessary Department facilities, and develop, 
establish, and maintain an efficient and effective security system 
covering, among others, personnel, physical installations, equipment, 
documents and materials including the conduct of security 
Investigations;
6. Coordinate with the appropriate government agencies for a more 
efficient conduct of administrative processes;
7. Develop, establish, and maintain an efficient records system;
8. Provide assistance in its area of specialization to the Department 
Proper, bureaus and regional and water district offices and, when 
requested, the government agencies and corporations attached to the 
Department; and
9. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives.
e) The Legal and Legislative Service shall provide the Department with services 
on such legal affairs as contract letting and litigation, legal and legislative 
research, complaints and investigation, legal counselling and other matters of 
law, and shall exercise the following functions:
1. Advise the Secretary on ail matters relating to legal and legislative 
affairs;
2. Prepare Department contracts and legal instruments, review and 
Interpret all contracts and agreements entered into by the Department 
and evaluate all legal proposals;
3. Conduct administrative investigation and the review of administrative 
charges against officers and employees of the Department;
4. Exercise functional jurisdiction over the legal staffs of Regional Offices;
5. Provide legal assistance to the Department Proper, the bureaus and 
regional offices and when requested, the attached corporations;
6. Develop and prepare the Department's Legislative Agenda, recommend 
presidential certification of the urgency of priority water bills, and other 
water-related legislations;
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7. Coordinate and maintain linkages among the various offices, bureaus, 
regional offices and attached agencies to the DWR along with other 
government agencies on policy matters affecting the Department's 
mandate in relation to legislation;
8. Maintain effective liaison with the Congress regarding congressional 
Inquiries, and enactment of water-related laws;
9. Monitor the progress of the Department's priority or certified bills to 
ensure their passage; and
10. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives.
f) The ComptroHership and Financial Management Service shall provide the 
Department with coordinated services relating to financial systems and 
procedures, budget, cash, accounting and all financial housekeeping matters, 
and shall exercise the following functions:
1. Advise the Secretary on ail matters relating to the accounting of 
government expenditures and receipts, budgeting and cash 
management, project finances and financial systems and procedures;
2. Prepare budget proposals and pursue formal budget authorizations, 
undertake budget execution, and prepare and submit ail appropriate 
reports to the proper offices;
3. Develop and maintain accounting, financial and assets management 
systems, procedures and practices in the Department Proper, Bureaus 
and Regional Offices;
4. Review and appraise systems and procedures, organizational structure, 
assets management practices, accounting, and other records, reports, 
and performance standards such as budgets and standard costs of the 
Department, bureaus, and regional offices;
5. Provide assistance in Its area of specialization to any unit of the 
Department and, when requested, to government corporations and 
councils attached to the Department; and
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6. Perform such functions and activities, as may be mandated by law,
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which are necessary for the effective performance of the
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abovementloned objectives.
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g) The Resource Allocation Service shall provide the Department with services on
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resource allocation and shall exercise the following functions:
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1. Advise the Secretary on all matters relating to water resource
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allocation;
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2. Determine, grant and regulate water rights for the appropriate, optimal
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and sustainable use of surface and ground water;
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3. Determine, evaluate and grant waterworks and sewerage franchises;
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4. Investigate violations of the water rights and the Water Code, and
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Impose the appropriate sanctions in accordance with existing laws,
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rules and regulations as well as future rules and regulations which the
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Department shall promulgate;
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5. Adjudicate water use conflicts; and
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6. Perform such functions and activities, as may be mandated by law,
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which are necessary for the effective performance 
of the
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abovementloned objectives.
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h) The Internal Audit Service shall regularly conduct a comprehensive audit of
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various Department activities, and shall report directly to the Secretary, and
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shall exercise the following powers and functions:
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1. Advise the Secretary on all matters relating to management control
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and operations audit;
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2. Conduct management and operations performance audit of
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Department activities and units, and determine as to the degree of
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compliance with established objectives, policies, standards, methods
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and procedures, government regulations, and contractual obligations of
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the Department;
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3. Analyze and evaluate management deficiencies and assist top
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management to solve problems by recommending realistic courses of
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4. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives.
i) The Public Affairs Service shall enhance government relations with all 
stakeholders including the media and shall ensure that women, men, elderly, 
and people with disabilities shall be consulted, organized and can take active 
part in all aspects of water resources development and management 
activities. It shall also lead the planning and organizing of the special events 
of the Department, and shall exercise the following functions:
1. Advise the Secretary on matters pertaining to public affairs services;
2. Develop and supervise the implementation of comprehensible 
communications programs on relevant policies, programs, and plans of 
the Department;
3. Produce and supervise the dissemination of communication materials In 
line with the priorities of the Department and the national government 
public Information programs;
4. Conduct public opinion and attitude surveys to identify the interests 
and concerns of the stakeholders of the Department;
5. Establish editorial policies on print and broadcast media;
6. Establish and maintain linkages with the tri-media and presence in 
social media;
7. Coordinate the conduct of interviews and news conferences;
8. Act as spokesperson for the Department;
9. Coordinate with various Department units, concerned government 
agencies, tri-media and other stakeholders on matters related to the 
above-enumerated functions;
10. Coordinate with the appropriate national government agencies involved 
in public information affairs.
11. Conduct public consultations and discussions;
12. Develop and disseminate relevant and appropriate materials and 
programs for public Information and education, as well as advocacy 
campaign;
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13. Conduct seminars and workshops involving the LGUs and the general 
public on current water issues and problems;
14. Conduct capability building seminars of various stakeholders to 
promote meaningful participation in the Department's policy making, 
planning, development and implementation of various programs and 
projects;
15. Coordinate the organization and promotion of special events and water 
exhibits;
16. Act as the focal office for all water-related events; and
17. Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the 
abovementioned objectives.
Sec. 24 Attached Agencies. - The Department shall exercise administrative 
supervision over the following agencies for purposes of policy and program 
coordination, monitoring, and evaluation:
a) The Water Regulatory Commission established under Chapter VI of this Act;
b) The LWUA, whose mandate, powers and functions are defined In Presidential 
Decree No. 198, as amended otherwise known as the Public Water Utilities 
Act of 1973 shall be transferred from the Department of Public Works and 
Highways and attached to the Department: Provided, that the powers and 
functions of LWUA, and the corresponding personnel, funds and 
appropriations, records, equipment, and property thereof, pertaining to the 
establishment of water districts, system exclusion. Integration, joint 
investment and operation, district annexation and de-annexation, and the 
regulation of their tariffs, rates, and charges shall be transferred to the Water 
Regulatory Commission. The LWUA shall continue to be primarily a specialized 
lending institution for the promotion, development, and financing of local 
water utilities and other Service Providers. In the implementation of its 
functions, the LWUA shall:
1. Prescribe minimum standards and regulations in order to assure 
acceptable standards of construction materials and supplies,
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maintenance, operation, personnel training, accounting, and fiscal 
practices for local water utilities;
2. Furnish technical assistance and personnel training programs for local 
water utilities;
c) The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandates, powers, and functions are defined under Republic Act No. 6234, as 
amended entitled. An Act Creating the Metropolitan Waterworks And 
Sewerage System and Dissolving the National Waterworks and Sewerage 
Authority and for Other Purposes, shall be transferred from the DPWH and 
attached to the Department: Provided, that powers of the MWSS to 
periodically fix water rates and sewerage service fees under Sections 2(c) and 
3(h) of R.A. No. 6234, and the corresponding personnel, funds and 
appropriations, records, equipment, and property thereof shall be transferred 
to the Water Regulatory Commission. The MWSS shall continue to facilitate 
the exercise by the concessionaires of its agency powers, carry out 
accounting and notification functions, monitor, report, and administer loans, 
and perform related functions in connections with existing projects, manage 
and dispose Its retained assets, and manage and operate the Umiray-Angat 
Transbasin Project;
d) The Laguna Lake Development Authority (LLDA), whose mandate, powers 
and functions are defined under Republic Act No. 4850, as amended entitled. 
An Act Creating the Laguna Lake Development Authority, Prescribing Its 
Powers, Functions and Duties, Providing Funds Therefor, and for Other 
Purposes shall be transferred from DENR and attached to the Department: 
Provided, that the power to set rates and fees for the use of the lake waters 
and its tributaries for all beneficial purposes under Section 4-B, and the 
corresponding personnel, funds and appropriations, records, equipment, and 
property thereof shall be transferred to the Water Regulatory Commission: 
Provided, further: that the rates fees set by the WRC shall no longer be 
subject to the approval of the President of the Philippines. The LLDA shall 
continue to serve as the lake management and development authority similar 
to a multi-stakeholder river basin organization and shall ensure the
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implementation of the Laguna Lake Master Plan which shall be updated by 
the Department to ensure alignment with the NWRMFP;
e) The National Irrigation Administration (NIA), whose mandates, powers and 
functions are defined under Republic Act No. 3601 as amended, is hereby 
transferred from the Department of Agriculture to the Department: Provided, 
that the power to set irrigation service fees for farmers with more than eight 
(8) hectares of land, corporate farms, and plantations drawing water for 
agricultural crop production; and fishponds and other persons, natural or 
juridical, drawing water for non-agricultural purposes, or using the irrigation 
systems as drainage facilities, shall be subject to the guidelines of the 
Department; and
f) Any other agency performing water resources management conservation, 
and protection functions which the President deemed necessary to be 
transferred to the Department.
Sec. 25. The Water Resources Regional Offices. - Water Resources Regional 
Offices, which shall be organized per water resources region, shall be responsible for 
Implementing the mandates, powers, and duties of the Department at the field level, 
except for policymaking which will be vested solely with the Central Office. The 
master planning for the nearby river basins such as the Pasig-Marikina-Laguna Lake- 
Cavite, shall be the responsibility of the Central Office. For this purpose, the duties 
and responsibilities of the WRRO shall be as follows:
a) Formulate or update and coordinate the river basin master plans for river 
basins within Its jurisdictions ensuring consistency with the NWRMFP;
b) Advocate and strongly support the creation and functioning of multi- 
stakeholder River Basin Organizations (RBOs) and serve as the secretariat of 
the said RBOs;
c) Undertake and evaluate the planning, design, and work supervision functions 
of the Department for the water infrastructures within the region;
d) Ensure the implementation of laws, policies, programs, rules, and regulations 
regarding the abovementioned infrastructure as well as public and private 
physical structures;
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e) Provide technical assistance related to the water-related functions of other
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agencies within the region especially the local government;
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f) Coordinate with other departments, agencies. Institutions and organizations,
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especially local government units within the region In the planning and
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implementation of the river basin master plans;
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g) Conduct continuing consultations with the local communities, take appropriate
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measures to make the services of the Department responsive to the Central
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Office and recommend such appropriate actions as may be necessary; and
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h) Perform such functions and activities, as may be mandated by law, which are
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necessary for the effective performance of the abovementioned objectives.
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The Department shall retain existing Project Management Offices as may be
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required, which shall be under the supervision and control of the appropriate Water
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Resources Regional Office Director, unless otherwise determined by the Secretary
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for reasons of supra- regional scope, magnitude and multi-functional coverage.
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Sec. 26. The Water Office Regional Directors. - The Water Resources
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Regional Offices shall be headed by a Water Resources Regional Director who shall
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be responsible for efficiently and effectively carrying out the duties and
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responsibilities of the Office.
19 
Towards this end, the Water Resources Regional Director shall, within his or
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her defined powers exercise functional and administrative supervision over ail units
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within the region including the authority to commit their resources and personnel to
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integrated regional water resources management, water supply and sanitation
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management, and flood control and flood risk management Initiatives.
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The Water Resources Regional Director shall also perform such other related
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duties and responsibilities as may be assigned or delegated by the Secretary or as
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may be required by law.
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The Water Resources Regional Director shall be assisted by two (2) Assistant
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Water Resources Regional Office Directors who shall exercise supervision over: (1)
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the planning, project design and evaluation function and (2) technical assistance to
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the River Basin Organizations within the water resources region.
31 
CHAPTER III
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THE NATIONAL WATER SECTOR POLICY COUNCIL
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Sec. 27. Creation of the National Water Sector Policy Council. - There is 
hereby established a National Water Sector Policy Council (NWSPC) which shall 
exercise policymaking, coordination, harmonization, integration, supervision, 
monitoring and evaluation functions with regard to water, land, subsurface, air, and 
other natural resources. The Council shall be composed of the following members:
a) The Secretary of the Department of Water Resources as Chairperson;
b) The Director-General of the National Economic and Development Authority as 
the Vice-Chairperson;
c) The Secretary of the Department of Health (DOH);
d) The Secretary of the Department of the Interior and Local Government 
(DILG);
e) The Secretary of the Department of Energy (DOE);
f) The Secretary of the Department of Agriculture (DA),
g) The Secretary of the Department of Social Welfare and Development 
(DSWD);
h) The Secretary of the Department of Public Works and Highways (DPWH);
i) The Secretary of the Department of Budget and Management (DBM);
j) The Secretary of the Department of Environment and Natural Resources 
(DENR);
k) A Representative from the Office of the President (OP); and
l) The Chairperson of National Commission on Indigenous Peoples (NCIP) as 
members.
The Staff of the Department shall serve as Secretariat to the Board.
Sec. 28. Powers and Functions. -The powers and functions of the Board shall 
be as follows:
a) Approve the National Water Resources Management Framework Plan 
(NWRMFP), and to ensure its consistency with the National Physical 
Framework Plan, which shall serve as a principal guide to water management 
efforts in the country and shall be reviewed on a five (5)-year interval, or as 
may be deemed necessary, in order to ensure its relevance to the times;
b) Ensure harmonization of all policies involving water, land, subsurface, air and 
other resources which are connected to the water sector;
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c) Ensure a multi-stakeholder participation in the development, updating, and 
sharing of Information system as policy, planning and decision-making tools; 
The powers and functions and the corresponding personnel, funds and 
appropriations, records, equipment, and property of the NEDA Infrastructure 
Committee-Subcommittee on Water Resources, as established under NEDA- 
Infrastructure Committee (INFRACOM) Resolution No. 2, s. 2008, shall also be 
absorbed by the Department.
CHAPTER IV
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DWR
Sec. 29. Interface And Institutional Arrangements With Other Agencies. -
a) The Department of Environment and Natural Resources (DENR) shall continue 
to have primary authority and responsibility for protecting the environment 
and managing the country's watersheds;
b) The Department of Energy (DOE) and the National Power Corporation (NPC) 
shall continue to have primary authority and responsibility for setting up and 
running hydropower plants, but shall ensure that any hydropower plant 
development plans are consistent with the National Water Development and 
Management Plan;
c) The Department shall coordinate with the Department of Agriculture (DA to 
ensure agricultural development that reduces sources of long-term pollution 
for surface water and groundwater, and agricultural and industrial economic 
development that employs water efficiency, water recycling or reuse and the 
appropriate treatment of wastewater;
d) The Department shall coordinate with the National Disaster Risk Reduction 
Management Council (NDRRMC) to ensure that Its plans and designs for flood 
control, flood risk management and drought risk management are aligned 
with the objectives and plans of the said Department;
e) The Department shall coordinate with Climate Change Commission (CCC), 
PAGASA, and NAMRIA for scientific studies, integrated surveys, mapping, 
charting and decision support systems;
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f) The Department shall coordinate with the Department of Tourism (DOT) on
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recreational use of water resources;
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g) The Department shall coordinate with the Philippine Reclamation Authority
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and economic zone authorities on water resources development and water
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requirements within reclamation areas and economic zones, respectively; and
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h) The Department shall coordinate with relevant government agencies,
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Including Local Government Units (LGUs) for development projects and to
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ensure cross-cutting collaboration between and among all water subsectors
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and facilitate inter-agency subsector coordination, strategic development,
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planning, monitoring and provision of technical, institutional and financial
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capacity building support to their different stakeholders at the water
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subsector level.
13 
CHAPTER V
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LOCAL GOVERNMENT PLANNING INTEGRATION
15 
Sec. 30. Local Water Resource Management Council. - There is hereby
16 
created and established in every LGU a Local Water Resource Management Council,
17 
hereinafter referred to as the "LWRMC".
18 
Sec. 31. LWRMC Composition. - The LWRMC shall be composed of, but not
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limited to, the following:
20 
a) The Local Chief Executives, Chairperson;
21 
b) The Local Planning and Development Officer, member;
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c) The Head of the LWRMO, member;
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d) The Head of the Local Disaster Risk Reduction Management Office, member;
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e) The Head of the Local Social Welfare and Development Office, member;
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f) The Head of the Local Health Office, member;
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g) The Head of the Local Sanitation Office, member;
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h) The Head of the Local Solid Waste Management Office, member;
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i) The Head of the Local Environment Office, member
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j) The Head of the Local Agriculture Office, member;
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k) The Head of the Local Engineering Office, member;
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I) The Head of the Local Budget Office, member;
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m) The Provincial Director/City/Municipal Chief of the Philippirie National Police 
(PNP), member;
n) The President of the Association of Barangay Captains (ABC), member
o) One (1) member of the Board of Directors from an LWD within the province, 
city, or municipality;
p) One (1) Civil Society Organization (CSO) representative, member; and
q) One (1) private sector representative, member.
Sec. 32. LWRMCFunctions. - The LWRMCs shall have the following functions:
a) Formulate and implement a comprehensive and Integrated Local Water 
Resource Management Plan (LWRMP) which shall serve as the principal guide 
to water management efforts within the territorial jurisdiction of the LCD 
following the policies and framework of the NWRM. The LWRMP shall be 
reviewed on a five (5)-year interval, or as may be deemed necessary, in order 
to ensure its relevance to the times;
b) Submit the LWRMP and progress reports on the LWRMP to the WRRO;
c) Monitor and evaluate the implementation of the LWRMPs and regularly review 
and test the plan consistent with the policy of the NWSPC;
d) Ensure the integration of water resource management into local development 
plans, programs, and budgets as a strategy in sustainable development of 
water supply; and
e) Convene once every three (3) months or as necessary.
Sec. 33. Local Water Resource Management Office (LWRMOX ~ There shall 
be established an LWRMC in every province, city and municipality, which shall be 
responsible for setting the implementation and coordination of LWRMPs within their 
territorial jurisdiction. The LWRMO shall be under the office of the governor, city or 
municipal mayor. The LWRMOs shall be initially organized and composed of a Head 
Officer to be assisted by three (3) staff responsible for: (1) administration and 
training; (2) research and planning; and (3) operations. The LWRMO shall perform 
the following functions:
a) Design, program, and implement activities consistent with the LWRMP;
b) Facilitate communications between the LGU and the WRRO;
c) Serve as secretariat and arm of the LWRMC;
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d) Facilitate trainings and seminars between the LWRMC and the WRRO on 
water resource management;
e) Prepare and submit to the local Sanggunlan through the LWRMC and the 
annual LWRMP and budget, and the enactment of local ordinances consistent 
with the LWRMP and the requirements of this Act;
f) Facilitate joint programs and activities between the LGU and the WRRO;
g) Gather, record, and consolidate Information relating to water resource 
management in its respective territorial jurisdiction, and transmit the 
information to the WRRO;
h) Present the consolidated information on water resource management in the 
LWRMC meetings;
i) Establish linkages and networks with other LGUs for water resource 
management as required by the LWRMP;
j) Disseminate Information and raise public awareness about water resource 
management;
k) Submit progress reports on the implementation of the LWRMP to the LWRMC;
l) Mobilize resources and personnel necessary to implement the LWRMP;
m) Develop, strengthen and operationalize mechanisms for partnership or 
networking with LWDs, local communities, and the private sector;
n) Coordinate other water resource management activities; and
o) Act on other matters that may be authorized by the LWRMC.
Sec. 34. Exemption of Local Government Units within Metro Manila. - Local 
Government Units within Metro Manila shall be under the Central Regulatory Unit of
24 
the Commission, and are hereby exempted from the provisions of this Chapter.
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Sec. 35. Penalties for Non-Compliance. - Failure of the LWRMC and LWRMO
26 
to perform its respective functions under this Chapter shall subject the responsible
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members or employees to the appropriate civil, administrative, and criminal liabilities
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provided in this Act and under existing laws.
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CHAPTER VI
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THE WATER REGULATORY COMMISSION
31 
Sec. 36. Establishment - There is hereby created and established an
32 
Independent, quasi-judicial regulatory body to be known as the Water Regulatory
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Commission, hereinafter referred to as "the Commission", which shall be organized
2 
within one hundred twenty (120) days after the effectivity of this Act. The
3 
Commission shall have a Board of Commissioners, and shall be vested with powers
4 
and functions, as conferred and set forth hereunder.
5 
The Commission shall be placed under the administrative supervision of the
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Department of Water Resources (DWR) as an attached agency.
7 
Sec. 37. The Regulatory Units. - The Regulatory Units of the Commission
8 
shall be composed of the Regional Regulatory Units and the Central Regulatory Unit.
9 
The Regional Regulatory Units shall be established by the Commission in accordance
10 
with the rules, regulations, guidelines, and standards that the Commission shall
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Issue, and as provided in this Act.
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The economic regulatory units and functions of the MWSS, NWRB,
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LWUA,SBMA, PEZA, and TIEZA are hereby transferred to the Commission, and shall
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collectively comprise its Central Regulatory Unit for Water Supply and Sanitation
15 
Services that: (a) provide services to more than one province; and (b) are owned,
16 
operated and/or maintained by special economic zones and Metro Manila
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concessionaires.
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Sec. 38. Powers and Functions of the Commission. - The overall authority and
19 
powers of the Commission shall cover and apply to all Service Providers, whether
20 
private or public, providing or intending to provide levels II & III water supply,
21 
including suppliers to subdivisions and/or other Service Providers, sewerage, and/or
22 
septage treatment and disposal services for domestic, residential, institutional,
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industrial or commercial use. The Commission shall exercise the following powers
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and functions:
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a) Issue and promulgate rules, regulations and guidelines as may be necessary
26 
to implement and enforce its powers and functions under this Act;
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b) Promulgate and enforce just and reasonable technical standards,
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classifications and measurements of service;
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c) Appoint the central and regional regulators;
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d) Establish rules and regulations to monitor, avoid, and provide remedies for,
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any market power abuse or anti-competItIve or discriminatory act or behavior
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by or against any participant in the water supply and sanitation sector. Upon
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finding that a market participant has engaged in, or fell victim to such act or 
behavior, the Commission shall act to stop and/or redress the same. Such 
remedies may, without limitation, include the imposition of price controls. 
Issuance of injunctions, requirement of divestment or disgorgement of excess 
profits. Invalidation of contracts and imposition of fines and penalties 
pursuant to this Act.
e) Adopt and require that books, records, and accounts be kept and maintained 
in accordance with the prescribed uniform accounting system;
f) Fix and determine proper and adequate rates of depreciation of properties 
and equipment used in Water Supply and Sanitation Sen/ice/s;
g) Impose and collect annual levies determined as a percentage of gross 
revenue accruing In relation to the licensed activities, and reasonable fees and 
surcharges as may be necessary for achieving the purposes, powers, and 
functions of the Commission;
h) Require the submission reports of finances and operations, verified under 
oaths by the owner or president and secretary of the Licensee;
i) Determine and require the monitoring and submission of such data, statistics 
and other information from the Regulatory Units and any or all licensees as 
may be necessary for the effective and efficient exercise of Its duties, 
functions, powers and responsibilities: Provided, that such data, statistics, and 
other information shall also be submitted to the Department for Integration in 
the centralized database on water resources.
j) Investigate, motu propio or upon complaint In writing, any matter concerning 
the operation of the service and Issues on price manipulation and anti­
competitive behavior;
k) Impose penalties and fines against any Licensee or against its owners, 
directors, officers, agents or representatives for any violation of this Act or of 
the license, order, rule regulation or requirement issued by the Commission;
l) Require any Licensee to pay the actual expenses incurred by the Commission 
in any investigation if it shall be found that a Licensee violated any provision 
of this Act or of the license, order, rule regulation or requirement issued by 
the Commission;
43


1 
m) Advise, apprise, and coordinate with the Department of Water, the National
2 
Water Policy Council, and other relevant agencies of the national or local
3 
government on any matter relating to Water Supply and/or Sanitation
4 
Services;
5 
n) Deputize agents, whether from the public or private sector, to assist In the
6 
performance of any of the powers and functions of the Commission;
7 
o) Appoint an Interim or temporary management committee upon appeal and
8 
after due hearing, to ensure continuity of service in cases a Licensee fails to
9 
meet conditions of the license and the concerned Regulatory Unit falls or
10 
refuses to appoint an interim management committee as provided in the
11 
following section;
12 
p) Appoint, hire and maintain adequate staff and personnel, advisers, and/or
13 
consultants, with suitable qualifications and experience, as necessary;
14 
q) Exercise original and exclusive jurisdiction over all cases contesting rates,
15 
fees, fines and penalties imposed by the Regulatory Units in the exercise of
16 
their powers, functions and responsibilities, as provided under this Act, and
17 
over ail cases Involving disputes between and among participants or
18 
stakeholders in the Water Supply and/or Sanitation Services; and
19 
r) Such other incidental powers and functions as may be necessary to attain the
20 
objectives of this Act.
21 
Sec. 39. Powers and Functions of the Regulatory Units. - The Regulatory
22 
Units of the Commission shall have the following powers and functions:
23 
a) Issue Licenses authorizing the operation of Water Supply and/or Sanitation
24 
Services in any specified area or areas within the Philippines;
25 
b) Impose fines, charges, and other penalties upon any Provider and/or its
26 
officers and stockholders who shall fail or refuse to register and/or obtain a
27 
License prior to operation or commencement of business, as provided
28 
hereunder;
29 
c) Review, determine, fix, and approve, consistent with the rules, guidelines,
30 
procedures and methodologies which the Commission shall provide, proposed
31 
water and sewerage tariffs, rates and charges 
that Licensees may impose
32 
upon their customers/consumers;
44


1 
d) Appraise and value property and equipment used by Licensees in providing
2 
water supply and sanitation service/s;
3 
e) Enforce technical, financial, and other performance standards set by the
4 
Commission for licensees/utilities;
5 
f) Respond to consumer complaints and ensure the adequate promotion of
6 
consumer interests and Investigate motu propio price manipulation and anti-
7 
competitive behavior;
8 
g) Investigate accidents directly or Indirectly arising from or connected with the
9 
maintenance or operation of the 
service, and make such order 
or
10 
recommendation as the public interest may warrant;
11 
h) Upon petition or motu propio, where its determination public interest so
12 
dictates, require the review and/or approval of contracts or agreements that
13 
may impact on the tariff and rates of service provision entered Into by Service
14 
Providers;
15 
I) Require the submission of reports, plans, and other documents that define
16 
the performance targets of 
the 
licensees or utilities, and regular
17 
accomplishment reports;
18 
j) Impose and collect annual levies determined as a percentage of gross
19 
revenue accruing in relation to the licensed activities, and reasonable fees and
20 
surcharges as may be necessary for achieving the purposes, powers and
21 
functions of the regulator;
22 
k) Conduct benchmarking and monitor the performance of licensees or utilities
23 
under their jurisdiction, and publish reports detailing the results thereof, as
24 
may be necessary or required by the Commission;
25 
I) Amend, modify, suspend or revoke any License issued by them, after due
26 
notice and hearing, on any of the following grounds:
27 
1. When the facts and circumstances on the strength of which the license
28 
was Issued have been materially misrepresented or has materially
29 
changed;
30 
2. Where the Licensee has failed to meet or comply with terms,
31 
conditions and performance targets, including but not limited to service
32 
expansion, that may have been set in the license;
45


1 
3. Where the Licensee is found to be manifestly Inefficient in the
2 
operation of or provision of Water Supply and Sanitation services in its
3 
area; or
4 
4. When the Licensee thereof has violated or willfully refused to comply
5 
with any order, rule or regulation of the Commission or any provision
6 
of this Act;
7 
m) Appoint an interim management committee to ensure continuity of service in
8 
case a Licensee fails to meet the conditions of the license; and
9 
n) Submit performance plans and reports as required by the Commission.
10 
Sec. 40. Composition of the Water Regulatory Commission. -
11 
a) The Commission shall be a collegial body composed of five (5) full-time
12 
members consisting of a Chairperson and four (4) members, who shall all be
13 
appointed by the President of the Philippines. All members of the Commission
14 
must be citizens and residents of the Philippines, at least thirty five (35) years
15 
of age, and of good moral character, recognized integrity and competence in
16 
the field of law, business, commerce, finance, accounting or public
17 
administration, water or utility economics, management, physical or
18 
engineering services, hydrology and other related services, with at least three
19 
(3) years actual and distinguished experience In their respective fields of
20 
expertise.' Provided, that out of the four members of the Commission, at least
21 
one (1) shall be a member of the Philippine Bar with at least ten years of
22 
experience in the active practice of law, and at least one (1) shall be a
23 
certified public accountant with at least ten years of experience in active
24 
practice;
25 
b) The term of office of each member of the Commission shall be seven (7)
26 
years: Provided, that among the members first appointed, the Chairperson
27 
shall serve for a period of seven (7) years, two (2) members shall serve for
28 
five (5) years and the other two (2) members shall serve for three (3) years:
29 
Provided further, that any member whose term has expired as specified
30 
herein shall serve as such until his successor shall have been appointed and
31 
qualified: Provided furthermore, that any appointment to fill a vacancy in the
32 
Commission arising from death, removal, retirement or resignation shall be
46


1 
made only for the unexpired term: Provided, finally, that in no case shall any
2 
member serve for more than seven (7) years in the Commission.
3 
c) The Commission shall meet as often as may be necessary on such day or
4 
days as the Chairperson may fix. The presence of at least three (3) members
5 
of the Commission shall constitute a quorum, which shall be necessary for the
6 
transaction of any business. The affirmative vote of majority of the members
7 
of the Commission where a quorum is present shall be nec'^ssary for the
8 
adoption of any order, resolution, decisions, or other act of the Commission in
9 
the exercise of its quasi-judicial functions: Provided, That in promulgating
10 
rules, regulations, guidelines and in the exercise of its quasi-legislative
11 
functions, an affirmative vote of three (3) members shall be required,
12 
d) The Chairman of the Commission shall exercise general executive control and
13 
supervision of the Commission and its members, staff and personnel, agents,
14 
and representatives. Within three (3) months from the creation of the
15 
Commission and the appointment of all Members of the Commission, the
16 
Chairman shall submit for the approval by the President of the Philippines the
17 
new organizational structure and plantilla positions necessary to carry out the
18 
powers and functions of the Commission, Including those of the Central and
19 
Provincial Regulatory Units. The staff 
and personnel positions of the
20 
Commission shall be filled by regular appointments in accordance with a
21 
staffing plan to be prepared by the Commission.
22 
e) Members of the Commission shall enjoy security of tenure and shall not be
23 
suspended or removed from office except for just cause as specified by law.
24 
f) The Chairman and members of the Commission or any of their relatives within
25 
the fourth civil degree of consanguinity or affinity, legitimate or common law,
26 
shall be prohibited from holding any interest whatsoever, either as investor,
27 
stockholder, officer or director, in any company or entity engaged in provision
28 
of water supply and distribution, septage management and sewerage services
29 
and must, therefore, divest through sale or legal disposition of any and all
30 
Interests in the water sector upon assumption of office.
47


1 
Sec. 41. Secretariat of the Commission. - The Commission shall establish a
2 
Secretariat which shall provide the Commission with technical and support services
3 
such as:
4 
a) Provide the necessary technical inputs and secretariat support to the
5 
Commission to facilitate the conduct of its functions;
6 
b) Coordinate with Regulatory Units to ensure proper implementation of the
7 
rules, regulations, and guidelines promulgated by the Commission;
8 
c) Monitor and assess activities of the Regulatory Units vis-a-vis their respective
9 
annual performance plans and targets;
10 
d) Maintain a database on the water supply and sanitation subsector; and
11 
e) Coordinate with other relevant agencies of the national or local government
12 
on any matter relating to water supply and sanitation.
13 
Sec. 42. The Executive Director. - The Commission shall appoint an Executive
14 
Director who shall head the Commission Secretariat, keep and maintain the official
15 
records, and report of the proceedings of the Commission, and administer oaths in
16 
all matters falling within the jurisdiction of the Commission.
17 
The Executive Director shall be responsible for the effective implementation of
18 
the policies, plans, programs, rules, regulations, and directives of the Commission;
19 
coordinate and supervise the activities of the different operating units under the
20 
Commission; and perform such functions as may be assigned by the Chairperson
21 
and/or other members of the Commission.
22 
Sec. 43. Enhancement of Technicai Competence. - The Commission shall
23 
establish rigorous training programs for its staff for the purpose of enhancing the
24 
technical competence of the Commission in the following areas: evaluation of
25 
technical performance and monitoring compliance with service and performance
26 
standards, performance-based rate-setting reform, environmental standards and
27 
such other areas as will enable the Commission to adequately perform its duties and
28 
functions.
29 
Sec. 44. Composition and Other Emoiuments. - The compensation of the
30 
members of the Commission and its staff shall be exempted from the coverage of
31 
Republic Act. No. 6758, otherwise known as the Salary Standardization Act:
32 
Provided, that the salaries of the Commission and Its staff shall conform as closely as
48


1 
possible to the principles of R.A. 6758. For this purpose, the schedule of
2 
compensation of the Commission and its Regulatory Units and staff shall be
3 
submitted for approval of the President of the Philippines. The compensation
4 
schedule of the Commission and its Regulatory Units and staff shall be Implemented
5 
within six (6) months from the effectivity of this Act and maybe upgraded by the
6 
President of the Philippines as the need arises: Provided further, that in no case shall
7 
the compensation of the Commission and Its staff be upgraded more than once a
8 
year. Pertinent civil service laws, rules, and regulations of the Philippines shall be
9 
applicable to the Commission.
10 
The Chairman and members of the Commission shall initially be entitled to the
11 
same salaries, allowances and benefits as those of the Presiding Justice and
12 
Associate Justices of the Supreme Court, respectively.
13 
CHAPTER VII
14 
REGISTRATION AND LICENSING
15 
Sec. 45. Registration and Licensing of AH Water Suppiy and/or Sanitation
16 
Services. - All Water Supply and/or Sanitation Service Providers, including but not
17 
limited to Bulk Water Suppliers, operators of privately-owned water supply systems,
18 
local government managed utilities, barangay waterworks associations, water
19 
districts, cooperatives, those providing services to subdivisions and/or other Service
20 
Providers, shall register with the Commission and, subject to such rules, guidelines,
21 
procedures and other issuances of the Commission, obtain a License to operate from
22 
the appropriate Regulatory Units.
23 
The Commission shall also ensure that the grant and revocation of licenses
24 
are carried out fairly, transparently, and without discrimination. Issuances of the
25 
Commission shall specify, among others, the qualifications, requirements and
26 
procedure for the grant and revocation of Licenses Including the standards and
27 
performance targets that shall continuously be complied with to keep the licenses
28 
valid.
29 
The Commission shall specify the requirements and procedure foi existing
30 
holders of Certificate of Public Convenience, Certificates of Public Convenience and
31 
Necessity issued by NWRB, and/or Conformance issued by LWUA, to convert their
32 
existing certificates into Licenses issued by the Commission. All existing providers of
49


1 
Water Supply and/or Sanitation Services without a legal and valid Certificate of
2 
Public Convenience/Certificate of Public Convenience and Necessity or Certificate of
3 
Conformance shall register with the Commission and apply for a License within six
4 
(6) months from the effectivity of this Act.
5 
Unless otherwise provided in this Act or by the Commission, no public water
6 
supply and/or sanitation service provider shall commence or conduct the business of
7 
providing water supply and sanitation services without first obtaining a license.
8 
Concession agreements and other contracts for water supply provision and/or
9 
water sanitation and treatment services currently existing shall remain valid and
10 
enforceable unless otherwise terminated, after due notice and hearing for reasons
11 
provided in the existing terms and conditions under the concession or service
12 
agreement or contract, or Invalidated by the Commission, after due notice and
13 
hearing, where national security, national emergency, or public interest so dictates.
14 
Sec. 46. No Exclusivity on Grants for Water Supply and/or Sanitation Services.
15 
- Except for Service Areas with respect to which exclusive rights to provide Water
16 
Supply and/or Sanitation Services are granted under existing laws, licensees do not
17 
have the exclusive right to provide Water Supply and/or Sanitation Services within a
18 
Service Area and consequently, the Regulatory Board may issue one or more
19 
licenses for operator within any existing or proposed Service Areas, as decided by
20 
the Supreme Court in Metropolitan Cebu Water District vs. Margarita A. Adaia (G.R.
21 
No. 168914, 04 July 2007).
22 
Sec. 47. Conditions of License. - The Commission and/or the concerned
23 
Regulatory Unit, may impose such conditions In the Issued License, as It may deem
24 
necessary, such as but not limited to:
25 
a) Tariffs, rates, and charges that may be imposed from its
26 
customers/consumers;
27 
b) Term fixing the duration of the privilege;
28 
c) Grounds for modification, suspension, or cancellation of the License;
29 
d) Minimum technical performance and service level standards, such as but not
30 
limited to: (1) water pressure; (2) minimum flow rates; (3) connections; (4)
31 
sewerage discharge, billing, and metering requirements, and sanctions for
32 
failure to comply with the standards set;
50


1 
e) Expansion targets and service level improvements over time;
2 
f) Restrictions or conditions for transferability of the business or controlling
3 
interest in the business;
4 
g) Reportorial requirements and obligations of the grantee;
5 
h) Submission to annual performance audit by the Commission or its duly
6 
authorized representative(s).
7 
Sec. 48. Rights and Duties of Licensees. -
8 
a) Any person granted a License under this Act shall have the obligation to
9 
ensure that licensed activities are conducted to further public interest and, in
10 
particular:
11 
1. Foster the maintenance and development of efRcient, coordinated, and
12 
viable operation of their licensed activities;
13 
2. Ensure that their water supply and/or sanitation services are provided
14 
in a diligent, conscientious and workman like manner, in accordance
15 
with applicable laws rules and regulations issued by the Commission
16 
and the generally accepted standards and practices in the water supply
17 
and sanitation Industry;
18 
3. Comply with drinking water quality requirements and standards that
19 
may be established by the Commission; and
20 
4. Ensure that provision of services shall not be discontinued without
21 
notice to, and approval by, the Commission.
22 
b) Any person granted a License under this Act shall, to the extent allowed by
23 
law and specified in the License, has the right to acquire or lease land, lay or
24 
repair water or sanitation mains, and other relevant facilities in public ways to
25 
fulfill their obligations;
26 
c) Subject to any condition or limitation laid down in the License, a licensee may
27 
disconnect water supply and/or sanitation services to a customer If such
28 
customer defaults in the payment of fees due to the licensee for the water
29 
supplied or sanitation services provided, or for acts of pilferage pursuant to
30 
Sections 8, 9, 10, and 11 of Republic Act No. 8041, otherwise known as the
31 
Water Crisis Act of 1995;
51


1 
d) Any License issued under this Act shall contain provisions designed to ensure
2 
that Licensees:
3 
1. Publish the Tariff and other charges approved by and the terms and
4 
conditions imposed by the Commission for the provision of water
5 
supply and/or sanitation services;
6 
2. Prepare, within three (3) months from the Issuance of a License, in
7 
consultation with its customers, a customer service code specifying the
8 
manner and procedure for:
9 
I. Metering, billing, and collection of the Licensee's approved tariff
10 
and other charges;
11 
ii. Disconnection or suspension of service in case of non-payment
12 
of tariffs and/or other charges, or acts of pilferage; and
13 
iii. Recommendation and recovery of arrears in tariffs and other
14 
charges.
15 
3. Maintain financial accounts In accordance with the manner and
16 
procedure specified in the License and as may be required by the
17 
Commission; and
18 
4. Maintain and, upon request by anyone during regular office hours,
19 
promptly make available for scrutiny and Inspection such data,
20 
statistics and other information, as may be required by the
21 
Commission.
22 
Sec. 49. Setting Tariffs/ Rates and Other Charges. - Regulatory Units shall
23 
establish tariffs, rates and other charges which are fair and reasonable, and ensure
24 
environmental sustainability, economic viability, and a fair return on investments
25 
considering the prevailing cost of capital in the domestic and international markets.
26 
Tariffs, rates, and charges shall be based on, and consistent with, a scientific and
27 
evidence-based rate-setting methodology that the Commission shall, after due
28 
consultation with the Department, define and publish, taking Into account the
29 
following, among others:
30 
a) Reasonable and prudent capital and recurrent costs of providing the service
31 
including a reasonable rate of return on capital;
32 
b) Efficiency of the service;
52


1 
c) Incentives for enhancement of efficiency;
2 
d) Willingness to pay of the customers/consumers;
3 
e) Equity considerations;
4 
f) Environmental sustainability; and
5 
g) Administrative simplicity.
6 
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid
7 
and reasonable unless a protest or contest is filed with the Commission.
8 
Sec. 50. Direct Access. - Fifty-one (51) percent of the registered water
9 
consumers in a municipality, city or province may petition for direct access to water
10 
from any water service provider subject to concurrence by the service provider and
11 
approval by the Commission. The Commission shall promulgate the implementing
12 
rules and procedures for this mode of service or direct access water service.
13 
Sec. 51. Promotion of Innovative Schemes to Improve EfTickncy and
14 
Management of Systems. - The Commission shall promote innovative schemes such
15 
as the consolidation and/or Integration of water supply and/or sanitation services,
16 
and/or providers In the same service area, where it shall result in Improved
17 
efficiency, service expansion, and/or lower costs.
18 
To this end, the Commission shall establish and issue such rules and
19 
guidelines as may be necessary to (a) create incentives to encourage efficiency and
20 
service expansion; (b) establish the standards and targets that service providers are
21 
required to meet; and (c) define the fines and penalties that shall be imposed for
22 
failure to meet such standards and targets.
23 
CHAPTER VIII
24 
PROCEEDINGS BEFORE THE COMMISSION
25 
Sec. 52. Proceedings Before the Commission. - For the purpose of any
26 
investigation, inquiry or proceeding, the Commission shall:
27 
a) Issue subpoena duces tecum and subpoena ad testificandunr,
28 
b) Appoint hearing officers to hear and receive evidence on behalf of the
29 
Commission;
30 
c) Cite any person or party for contempt for refusal to appear, testify or comply
31 
with an order of the Commission on any matter that is the subject of
32 
investigation, inquiry or proceeding before the Commission.
53


1 
Sec. 53. Orders and Decisions of the Commission. -The orders, resolutions
2 
and decisions of the Commission shall be promulgated promptly, expeditiously, and
3 
reasonably, and shall be In writing stating clearly and distinctly the facts and law on
4 
which it is based. The Commission shall publish and make avaiiable for pubiic
5 
inspection, all decisions and final orders in the adjudication of contested cases or
6 
applications.
7 
Sec. 54. Appeais Procedure and Prohibition Against Injunction. -
8 
a) The orders, rulings, and decisions of the Commission are finai and executory
9 
unless appealed to the Court of Appeals within fifteen (15) days from receipt
10 
of notice of such order, ruling or decision: Provided, that orders, rulings, and
11 
decisions of the Commission approving tariffs, shall be immediately executory
12 
and may be suspended only upon appeal and filing of a bond, in an amount
13 
to be fixed by the Commission, to answer for damages occasioned by the
14 
suspension or stay of execution of such orders, rulings, and decisions.
15 
b) No injunction may be issued by any court or administrative agency to restrain
16 
any proceeding before, or the implementation or execution of any order,
17 
ruling, or decision of the Commission, except on the basis of a question of law
18 
brought before the Supreme Court on certiorart. Provided, that this
19 
prohibition shall not apply when the matter is of extreme urgency involving a
20 
constitutional issue, such that unless a temporary restraining order is issued,
21 
grave injustice and irreparable Injury will arise. In such a case, the applicant
22 
shall file a bond, in an amount to be fixed by the Court, which bond shall
23 
accrue In favor of the government if the court should finally decide that the
24 
applicant was not entitled to the relief sought.
25 
c) Subject to Sec. 40, Paragraph (b) of this Act, an act or decision of the
26 
Commission shall not be Invalid merely because of a defect or Irregularity In,
27 
or in connection with, the appointment or vacancy in the Office of the
28 
Chairperson or any other member of the Commission.
29 
CHAPTER IX
30 
TRANSITORY AND FINAL PROVISIONS
31 
Sec. 55. Transfer of Rights and Obiigations.- The Department and the
32 
Commission shall, by virtue of this Act, be subrogated to all the rights, and assume
54


1 
ail the obligations, of the Water Utilities Division of the NWRB, the Regulatory Offices
2 
of MWSS and LWUA, the Regulatory Units of all special economic zones, and all
3 
other government agencies and units whose powers and functions have been
4 
transferred to them.
5 
The transfer of powers and functions to the Department and the Commission,
6 
as herein provided for, shall take effect within six (6) months after the effectivity of
7 
this Act. The foregoing transfer of powers and functions shall include all applicable
8 
funds, personnel, records, property and equipment, as may be necessary. The same
9 
shall apply to agencies which have been attached to the Department by virtue of this
10 
Act.
11 
All agencies transferred, subsumed and attached to the Department or the
12 
Commission, shall continue to function under their present mandates until transition
13 
is effected under this Act, and the heads of the affected agencies shall continue to
14 
serve until replaced.
15 
All rights and obligations of the affected agencies are hereby transferred to
16 
and assumed by the Department or the Commission, and shall be acted upon in
17 
accordance with the rules and regulations of the Commission on Audit and other
18 
pertinent laws, rules, and regulations.
19 
Sec. 56. Absorption or Separation from Service of Empioyees of the
20 
Subrogated Agencies. - The existing employees of the Water Utilities Division of the
21 
NWRB, the Regulatory Offices of MWSS and LWUA, the Regulatory Units of all
22 
special economic zones, and all other government agencies and units whose powers
23 
and functions have been transferred to the Commission shall enjoy the security of
24 
tenure, and shall be absorbed by the Department, In accordance with their staffing
25 
pattern and the selection process as prescribed under Republic Act No. 6656 or the
26 
Government Reorganization Law.
27 
Employees opting to be separated from the service as a consequence of the
28 
consolidation and reconstitution under the provisions of this Act, shall within one (1)
29 
month from their separation or phase out from the service, receive separation
30 
benefits in accordance with existing laws and those who are qualified to retire shall
31 
be allowed to retire and be entitled to all benefits under any of the existing
32 
retirement laws.
55


1 
Sec. 57. Applicability of Ease of Doing Business Law. ~ The prescribed
2 
processing time provided under Section 9.b of Republic Act No. 11032 otherwise
3 
known as the Ease of Doing Business and Efficient Government Service Delivery Act
4 
of 2018, shall be applicable to all agencies and LGUs covered under this Act
5 
particularly on accessing government services.
6 
Sec. 58. Funding for the Commission. - The sum of Three Hundred Million
7 
(P300/000,000.00) pesos shall be allocated from any available funds of the National
8 
Treasury, and appropriated and authorized to be released, for the organization and
9 
Initial operations of the Commission.
10 
Thereafter, funds sufficient to fully carry out the objectives, powers, and
11 
functions of the Commission and its Regulatory Units shall be appropriated every
12 
fiscal year in the General Appropriations Act, in an amount that shall not be less than
13 
the amount appropriated for it the previous year.
14 
The Commission shall submit its annual budget, which shall include, among
15 
others, detailed information on the compensation and benefits received by their
16 
employees, to the Department for approval.
17 
Subject to existing rules and regulations of the Department of Budget and
18 
Management (DBM), all funds and monies collected by the Commission from fees,
19 
charges, surcharges and penalties, which the Commission may impose and collect
20 
under this Act, shall accrue directly and automatically to the Commission and shall
21 
be utilized solely for Its operations. The guidelines for the collection and
22 
disbursement of these proceeds shall be defined in the implementing rules and
23 
regulations of this Act.
24 
A proportion of the abovementioned amounts shall be used for training and
25 
capacity building purposes. Including the upgrade and procurement of equipment
26 
and software as may be necessary for the efficient and effective exercise of its
27 
power, subject to existing laws on procurement, accounting and auditing rules and
28 
regulations.
29 
The amount of funds and monies collected, and the costs and purposes for
30 
which such were expended, shall be made publicly available upon request, as well as
31 
on an official website that the Commission shall establish.
56


1 
Sec. 59. Water Trust Fund - There is hereby created a Water Trust Fund in
2 
the Bureau of Treasury. All non-tax revenues, including raw water pricing, permit
3 
fees, registration fees, supervision and regulation enforcement fees, filing fees,
4 
testing fees, and other service income from the use of water resources shall be
5 
remitted to the Water Trust Fund. The trust fund shall be accounted separately from
6 
the government's general revenues and shall be automatically appropriated to the
7 
Department. Proceeds from the trust fund shall be utilized for water development,
8 
water sanitation and waste water treatment and management, and water
9 
sustainability programs and projects authorized under this Act: Provided, That a
10 
maximum of ten percent (10%) of the total income generated from row water
11 
extraction shall be given as share of the concerned local government unit or
12 
Indigenous people (IP) who owned the specific areas or land where the raw water
13 
was sourced.
14 
Sec. 60. Appropriations. - The sum of two billion pesos (P2A000,000,000.00)
15 
shall be set aside from available funds of the National Treasury and Is hereby
16 
appropriated and authorized to be released for the organization of the Department
17 
and the current year's appropriations of the NWRB, RCBO, NIA, MCBO and the
18 
Water Quality Management Section of the EMB of the DENR, the Flood Management
19 
Cluster of the DPWH, the Water Supply and Sanitation Unit of the DILG shall be used
20 
for its initial operations. Thereafter, such sums as may be necessary for the
21 
continued Implementation of this Act shall be included in the General Appropriations
22 
Act. The Department shall Include in its proposed budget the necessary amount to
23 
enable It to achieve its mandate and to carry out its powers and functions.
24 
Sec. 61. Implementing Rules and Regulations. - Within one hundred eighty
25 
(180) days from the effectivity of this Act, the Department, in consultation with
26 
concerned government agencies, the Senate Committee on Public Services, and the
27 
Committee on Civil Service, Professional Regulation, and Government
28 
Reorganization, and the House of Representatives Committee on Government
29 
Reorganization, shall promulgate the necessary Implementing rules and regulations
30 
for the implementation of this Act: Provided, that the revised implementing rules and
31 
regulations shall take effect fifteen (15) days following Its publication in two (2)
32 
newspapers of general circulation.
57


1 
Sec. 62. Separability Clause. - If any reason, any portion or provision of this
2 
Act shall be held unconstitutional or invalid, the remaining provisions not affected
3 
thereby shall continue to be in full force and effect.
4 
Sec. 63. Repealing Clause. -
5 
a) The following provisions are hereby repealed:
6 
i. The provision with respect to fixing of water rates and sanitation
7 
service fees of Section 3 (h) and Section 12, and regulation of
8 
waterworks and deep wells of Section 3 (n), regulation of waterworks
9 
and sanitation systems in privately owned subdivisions of Section 3 (p)
10 
of Republic Act 6234;
11 
ii. Section 62 on regulation and Section 63 on rate review of Presidential
12 
Decree No. 198 otherwise known as the "Provincial Water Utilities Act
13 
of 1973", as amended by Letter of Instruction No. 700 - "Providing
14 
Measures To Control And Regulate Increase In Water Rates", Letter of
15 
Instruction No. 744 - "Relative To Reliable Water Supply At Reasonable
16 
Rates In The Countryside", Executive Order No. 124, 30 January 1987
17 
“ "Reorganization Act of the Ministry of Public Works and Highways",
18 
and Executive Order No. 123, 30 January 1987 - "Reorganization Act
19 
of Ministry of Social Services and Development", is hereby repealed or
20 
modified accordingly.
21 
b) The following provisions are hereby amended accordingly:
22 
I. Section 154, Article V, Chapter I, Title One, Book II of Republic Act No.
23 
7160 otherwise known as the "Local Government Code of 1991", and
24 
its implementing rules and regulations on the power of the local
25 
government units to fix the rates of water utilities owned, operated
26 
and maintained by them within their jurisdiction is hereby repealed or
27 
modified accordingly.
28 
ii. Section 13 (b) on regulation of enterprises within the Economic Zone
29 
under Republic Act No. 7916 as amended, otherwise known as the
30 
Special Economic Zone Act of 1995, Is hereby repealed or modified
31 
accordingly; and
58


1 
iii. Provisions under Section 69 of Republic Act No. 9593 or The Tourism
2 
Act of 2009 and its Implementing Rules and Regulations which
3 
mandates the Tourism Infrastructure and Enterprise Zone Authority to
4 
grant franchises, supervise the operation of public utilities, and
5 
register, monitor and regulate enterprises within Tourism Enterprise
6 
Zones, are hereby repealed or modified accordingly.
7 
c) All other laws, presidential decrees, executive orders, presidential
8 
proclamations, rules and regulations, or parts thereof which are inconsistent
9 
with the provisions of this Act are hereby repealed or amended accordingly.
10 
Sec. 64. Etfectivity. - This Act shall take effect thirty (30) days after its
11 
publication in the Official Gazette.
Approved,
59