1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
EXPLANATORY NOTE 
This bill seeks to rationalize the water, irrigation, sewage, and sanitation resource 
management, including water rights, through the creation of the Department of Water, 
Irrigation, Sewage, and Sanitation Resource Management. 
The Philippines is rich in water sources like rivers, lakes, and groundwater 
reservoirs which assure us of adequate supply for domestic, agricultural, and industrial 
purposes. However, at present, management of the said water sources is lodged with 
different units or agencies of the government thereby resulting to poorly coordinated 
or even conflicts in the implementation of the national policies and plans on water, 
sewage, sanitation, and irrigation thereby resulting to backlog in the provision of water 
supply and sanitation services to the public. 
The present set-up for water, irrigation, sewage, and sanitation responsibilities 
of the government involves, among others, the following major government agencies: 
a) National Water Resources Board (NWRB), a government agency responsible
for the enforcement of the Water Code of the Philippines which is under the 
Department of Environment and Natural Resources (DENR); 
b) Local Water Utilities Administration (LWUA), a government-owned and
controlled corporation (GOCC) attached to the Department of Public Works and 
Highways (DPWH) and has regulatory powers over: 
1) all local water districts (LWDs); and
2) rural waterworks and sanitation associations (RWSAs) nationwide;
c) Metropolitan Waterworks and Sewerage System (MWSS), a GOCC also
attached to the DPWH, which is responsible for the water supply and sanitation in the 
Metropolitan Manila and such contiguous areas as may be added to its area of 
jurisdiction, and; 
d) National Irrigation Administration (NIA), a government agency under the Office
of the President primarily responsible for irrigation development and management. 
July 28, 2022
3:46 pm
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Upon the United Nations General Assembly's recognition of the human right to 
water and sanitation and acknowledgement that clean drinking water and sanitation 
are essential to the realization of all human rights, it is imperative upon the Philippine 
government to efficiently and effectively manage its water resources to attain ideal 
allocation of its water resources that will focus primarily on the people's right to safe 
and affordable drinking water and sanitation service that are indispensable to every 
citizen's basic health and economic prosperity. The Philippine government must 
consider the rapid population growth, common waterborne diseases like diarrhea, 
leptospirosis, and dengue, agricultural requirements for food production, water 
pollution, watershed degradation, climate change, and other related factors that need 
to be adequately addressed without delay. 
 
It must be stressed that the Philippine government's responsibility to safe, clean, 
accessible, and affordable drinking water, sanitation, and irrigation service to the 
public is of utmost importance and it is attainable through a well-coordinated, effective, 
efficient, and sustainable management of its water and sanitation resources. 
 
Hence, there is an immediate need to create the Department of Water, Irrigation, 
Sewage and Sanitation Resource Management which shall have the following primary 
functions: 
 
1) Set the policies for water supply and sewage and sanitation management; 
2) Develop and manage the country's water resources to ensure optimal use, 
including but not limited to, domestic, irrigation, power generation, industrial, 
agricultural, and commercial use; 
3) Build, maintain and monitor water-related infrastructure, water quality and 
accessibility; 
4) Regulate the operation and management of water utilities such as MWSS, 
LWDs, RWSAs and other water and sanitation service providers; 
5) Make available and/or provide financial assistance to non-viable LWDs for 
the improvement of water facilities or services through funds prior and future 
appropriations of the National Government for waterworks and sewerage 
systems; 
6) Regulate and control the utilization, exploitation, development, conservation 
and protection of all water resources; 
7) Administer and enforce the provisions of Water Code of the Philippines; 
8) Plan, design, construct, and/or improve all types of irrigation projects and 
appurtenant structures; 
9) Operate, maintain, and administer all national irrigation systems (NIS); 
10) Supervise the operation, maintenance, and repair, or otherwise administer 
temporarily all communal and pump irrigation systems constructed. 
improved, and/or repaired wholly or partially with government funds; 
11) Delegate the partial or full management of NIS to duly organized 
cooperatives or associations; 
12) Construct multiple-purpose water resources projects designed primarily for 
irrigation, and secondarily for hydraulic power development and/or other 
uses such as flood control, drainage, land reclamation, domestic water 
supply roads and highway construction, and reforestation, among others, 
Provided, that the plans, designs, and the construction thereof, shall be 
undertaken in coordination with the agencies concerned; 


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13) Charge and collect from the beneficiaries of the water from all irrigation
systems constructed by or under its administration.
In view of the foregoing, approval of this measure is earnestly sought. 
RON P. SALO   
   KABAYAN Party List 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
AN ACT 
ESTABLISHING 
THE 
NATIONAL 
FRAMEWORK 
FOR 
WATER 
RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND 
THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, POWERS 
AND FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “National Water Act”. 
SEC. 2. Declaration of Policy. –  Access to water is a basic human right. All water 
belongs to the State which shall govern its development and utilization for the people.  
It is hereby declared the policy of the State to ensure the provision of safe, adequate, 
affordable, and sustainable water supply and improved sanitation services, while maintaining 
the protection, preservation, and revival of the quality of the country’s water resources and 
ecological balance. 
In pursuit of this policy, this Act shall have the principal objective of ensuring and 
accelerating universal access to water supply and sanitation services, in a regulatory regime 
that encourages responsible private sector participation, and shall foster and prioritize the 
establishment of infrastructure and public works that adopt innovative solutions and 
international best practices to address the challenges of climate change. Further, all water 
and water treatment infrastructure projects are hereby declared as projects imbued with 
national interest. 
SEC. 3. Definition of Terms. – As used in this Act: 
(a) Bulk water supplier refers to any entity, natural or juridical, whether public or private,
supplying or intending to supply large quantities of raw or treated water to buyers who
will use these for their own consumption, such as industrial companies, or for retail
distribution to consumers such as water service providers or real estate developers
managing their own distribution network.
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(b) Environmental services refer to qualitative functions of natural non-produced assets
of land, water, and air, including related ecosystems, and their biota, and which may
be categorized into three basic types: (a) disposal services which reflect the functions
of the natural environment as an absorptive sink for residuals; (b) productive services
which reflect the economic functions of providing natural resource inputs and space
for production and consumption, and (c) consumer or consumption services which
provide for physiological as well as recreational and related needs of human beings.
(c) Flood Control refers to methods, acts, and protocols to be observed in order to prevent
and reduce the detrimental and catastrophic effects of flood waters which include
sediment-laden or turbid flows, and hyper-concentrated flows or debris flows.
(d) Flood Risk Management (FRM) refers to such acts of defining and determining the
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of
incurring loss of both life and property due to flood waters. Flood risk management
consists of a cycle of prevention, mitigation, adaptation, preparedness and early
warning, and response and recovery. The elements of FRM include: integrating land-
use planning and coastal zone management into water management; adopting a
holistic approach so that FRM is part of wider risk or multi-hazard management of
earthquakes, landslides, and storm surges; managing risk and uncertainty as a whole
so it not only mitigates hydrological uncertainties but also social, economic and
political uncertainties on account of human behavior and the cultural dimensions of
FRM.
(e) Gender Equality refers to the principle asserting the equality of men and women and
their right to enjoy equal conditions realizing their full human potentials to contribute
to and benefit from the results of development, and with the State recognizing that all
human beings are free and equal in dignity and rights.
(f) Infrastructure and public works refer only to wholly or primarily water-related projects
and does not include projects that do not fall within the purview of the objectives, power
and duties of the Department of Water Resources created under this Act.
(g) Integrated Water Resource Management (IWRM) refers to a systematic, collaborative,
and multi-stakeholder process which promotes the coordinated development and
management of water, land, and related resources within geophysical boundaries in
order to maximize the resultant economic and social welfare in an equitable manner,
and without compromising the sustainability of vital ecosystems.
(h) Levels of water supply refer to communal sources of water described according to
location and size of the recipient human settlement as follows:
(1) Level I or the point source is a protected well or a developed spring with an outlet
but without any distribution system, generally adaptable to rural and upland areas
where houses are thinly scattered, and is a facility which usually serves an average
of 15 households.
(2) Level II or the communal faucet system or stand posts is a system composed of a
water source, a reservoir, a piped distribution network, and communal faucets
where one faucet serves 4 to 6 households and is generally suitable for rural and


 
 
                              
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urban fringe areas where houses are clustered densely to justify a simple piped 
system. 
 
(3) Level III or the waterworks system or individual house connections is a system with 
a water source, a reservoir, a piped distribution network and household taps, 
suitable for densely populated urban areas. 
 
(i) License refers to the Water Supply and/or Sanitation Services Operating License that 
the Water Regulatory Commission is authorized to grant and issue to service 
providers.  
 
(j) Licensee refers to a service provider to whom a license is granted or issued by the 
Water Regulatory Commission. 
 
(k) Missionary Water Services refer to water supply or services to areas that have no 
existing safe water supply and services due to geographic limitation or absence of 
economic and market viability. 
 
(l) National Water Resources Management Plan (NWRMP) refers to a policy document 
that contains a framework to guide the development and management of all the water 
resources in the Philippines, the general strategies and work to be pursued to ensure 
the sustainability of the resource towards water security, and top-level direction on the 
utilization of existing water resources in line with national development plans, policies, 
and programs in accordance with the IWRM framework. The NWRMP shall also 
include a water infrastructure development program of all waters of the country as well 
as provide general guidance on how this shall be supported within an integrated 
financing framework that can draw from public, private, and international development 
funding sources. 
 
(m)Net Waste Load refers to the difference of the initial waste load of the abstracted water 
and the waste load of the final effluent discharge of an industry. 
 
(n) Regulatory Units refer to the offices established under Section 20 of this Act which 
issue licenses authorizing the operation of Water Supply and Sanitation Services, and 
provide, review, determine, fix, and approve water and sewerage tariffs, rates, and 
charges that licensees may impose.  
 
(o) River basin refers to an area of land drained by a stream or body of fixed water and 
its tributaries which have a common outlet for surface run-off.  
 
(p) River Basin Organization (RBO) refers to multi-stakeholder organizations which plan, 
coordinate, and monitor activities within a river basin cluster. 
 
(q) Sanitation refers to the provision of facilities and services for the safe management of 
human excreta, from toilet to containment, and storage and treatment onsite or 
conveyance, treatment and eventual safe end use or disposal, and includes the safe 
management of solid waste and animal waste. 
 


 
 
                              
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(r) Sediment management refers to control of sediment erosion and deposition in rivers, 
reservoirs, and coastal zones through non-structural and structural measures and 
control works.  
 
(s) Sustainable Development Goals (SDGs) also known as the 17 Global Goals refer to 
the universal call to action to end poverty, protect the planet and ensure that all people 
enjoy peace and prosperity by 2030 adopted by all United Nations Member States in 
2015.  
 
(t) Septage is the liquid and solid material pumped from a septic tank, cesspool, or other 
primary treatment source.  
 
(u) Septage Management refers to the provision of proper collection, treatment, and 
disposal of septage. 
 
(v) Service Area refers to the area covered by the water distribution system, sewerage, 
and/or septage management services.  
 
(w) Service Provider refers to any entity, natural or juridical, whether private or public, 
providing or intending to provide levels II & III water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic, 
residential, industrial, or commercial use.   
 
(x) Sewage refers to water borne human or animal wastes, excluding oil or oil waste, 
removed from residences, buildings, institutions, and industrial and commercial 
establishments together with such groundwater, surface water and storm waters as 
may be present including such waste from vessels, offshore structures, other 
receptacles intended to receive or retain waste or other places or the combination 
thereof.   
 
(y) Sewerage refers to any system or network of pipelines, ditches, channels or conduits 
including pumping stations, lift stations and force mains, service connections including 
other infrastructure, devices, or appliances appurtenant thereto, which include the 
collection, transport, pumping and treatment of sewage to a point of disposal. 
 
(z) Sewers refer to pipes or such other works or structures which are built and constructed 
to carry, transport, and dispose sewage. 
 
(aa) Social inclusion refers to the process of improving the terms for disadvantaged 
individuals and groups to take part in society.  
 
(bb) Tariffs refer to such amounts which may be charged by licensees for their water 
supply and sanitation services based on principles, standards, and guidelines 
established by the Department of Water Resources. 
 
(cc) Water Demand Management (WDM) refers to any method, whether technical, 
economic, administrative, financial, or social that will accomplish one or more of the 
following: 
 
(1) Reduce the quantity or quality of water required to accomplish a specific task; 


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(2) adjust the nature of the task or the way it is undertaken so that it can be
accomplished with less water or with lower quality water;
(3) Reduce the loss in quantity or quality of water as it flows from source, through use,
to disposal;
(4) Shift the timing of use from peak to off-peak periods; and
(5) Increase the ability of the water system to continue to serve society during times
when water is in short supply.
(dd) Water Districts refer to government-owned and controlled corporations organized
under Presidential Decree No. 198, as amended, created primarily to acquire, install,
operate, maintain, and improve water supply and distribution systems for domestic,
industrial and municipal uses of residents and to provide, maintain and operate waste
water collection, treatment and disposal facilities within the boundaries of the district.
(ee) Water pollution refers to any alteration of the physical, chemical, biological, or 
radiological properties of a body of water resulting in the impairment of its purity or 
quality. 
(ff) Water Resource refers to water under the ground or groundwater, water above the 
ground such as surface water, run-offs, floods, stormwater and urban drainage, 
treated wastewater, water in the atmosphere or rain water, and the waters of the sea 
within the territorial jurisdiction of the Philippines. 
(gg) Water Resources Regions refer to the contiguous clusters of river basins which are 
grouped together according to the hydrological boundaries, physiographic features, 
and homogeneity in climate, whether or not they straddle different local government 
units, for administrative purposes under the Department of Water Resources. 
(hh) Water Service Provider (WSP) refers to the water district, any Local Government Unit 
(LGU)-run water utility, Barangay Waterworks and Sanitation Association (BWSA), 
Rural Waterworks Sanitation Association (RWSA), cooperative and private sector 
entity that provides water supply services to any given area.  
(ii) Water supply service refers to any activity comprising Levels I, II and III water supply
including bulk suppliers, suppliers to subdivisions, and other water service providers.
CHAPTER II 
THE DEPARTMENT OF WATER RESOURCES 
SEC. 4. The Department of Water Resources. – There is hereby created and 
established the Department of Water Resources, hereinafter referred to as the Department. 
SEC. 5. Mandate of the Department. – The Department shall be the primary agency 
responsible for the comprehensive and integrated identification and mapping of all water 
resources, planning, policy formulation, and management of the ownership, appropriation, 
utilization, exploitation, development, and protection of water resources in the Philippines to 


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ensure the optimal use thereof for domestic and municipal water supply, sanitation, irrigation, 
hydropower, industry, navigation, flood management, and recreation except fisheries or 
aquaculture. 
The Department shall also be the primary agency responsible for the planning and 
policy formulation towards the attainment of universal access to safe, adequate, affordable, 
and sustainable water supply, and improved sanitation services for all Filipinos. 
The Department shall be the primary national agency to enforce Presidential Decree 
No. 1067 otherwise known as The Water Code of the Philippines and Republic Act No. 9275, 
otherwise known as the Philippine Clean Water Act of 2004. 
The Department shall exercise the powers and functions of the defunct Pasig River 
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and 
abolished under Executive Order No. 93 Series of 2019, specifically the following roles that 
were transferred to the Manila Bay Task Force and DENR through the latter EO: 
(a) Update and take the lead in the overall implementation of the Pasig River
Rehabilitation Master Plan, which shall harness the Pasig River’s potential for
transportation, recreation and tourism purposes while undertaking the
rehabilitation and restoration of its maritime life; and
(b) Ensure that the easements provided for in the Civil Code and other relevant laws
are enforced, especially in all the esteros and waterways that drain into the Pasig
River, as well as abate the dumping of untreated industrial wastewater and
sewerage into the river, including all acts and omissions in violation of Presidential
Decree (PD) No. 984, s. 1976, as amended entitled, Providing For The Revision
Of Republic Act No. 3931, Commonly Known As The Pollution Control Law, And
For Other Purposes, PD No. 274, s. 1973 entitled, Pertaining To The Preservation,
Beautification, Improvement And Gainful Utilization Of The Pasig River, Providing
For The Regulation And Control Of Pollution Of The River And Its Banks In Order
To Enhance Its Development, Thereby Maximizing Its Utilization For Socio-
Economic Purposes, and other related laws.
SEC. 6. Guiding Principles. – In the pursuit of its mandate, the Department shall be 
guided by the following key principles: 
(a) The concept of good water governance for water security and sufficiency shall be
adopted across all levels of governance by stakeholders such as the national
government, local government, non-government organizations, private organizations,
individuals, even global societal actors, and in various sectors such as water supply,
irrigation, fisheries, hydropower, navigation, ecosystem services, flood management,
climate change, and recreation. It shall entail publicly transparent, socially
accountable, and multi-stakeholder participatory water policy planning, management,
and decision-making processes.
(b) Access to safe water supply and improved sanitation is a human right that needs to
be fulfilled and protected.


 
 
                              
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(c) Integrated Water Resource Management (IWRM) shall be adopted as the basic 
framework which is the coordinated development and management of water, land, and 
related resources within hydrological boundaries to optimize economic and social 
welfare without compromising the sustainability of vital ecosystems. The IWRM 
Framework shall include an enabling environment that utilizes proper policies, legal 
instruments, and   institutional frameworks for effective implementation, participatory 
and collaborative water policy and management decisions, and management 
instruments for efficient use of updated and accurate data, science-based decision 
support systems, proper information, education, communication (IEC) programs, 
assessment and allocation tools, or regulatory functions. It shall observe the mutual 
accountability mechanism among stakeholders at the national, regional, and global 
levels reinforcing multi-stakeholder decision-making following a framework with 
specific, measurable, attainable, relevant, and timely actions. 
 
(d) Each river basin has its unique characteristics relating to the physical, socio cultural, 
and other aspects, and water management shall be performed at river-basin level, 
involving all the stakeholders at that particular river basin.  
 
(e) Integrated and accurate data collection and analysis and the use of scientific decision 
support systems shall be undertaken in water resources management including flood 
modeling and warning systems that are essential for an effective, efficient, and 
sustainable water resources management system. 
 
(f) The development of water resources shall include strategies for the mitigation of 
water-related hazards and climate change adaptation. 
 
(g) Water resources and services should be provided where they are intended and most 
needed so that water is fairly and sustainably managed.  
 
(h) The proper operation and maintenance of waterworks systems resulting in the 
uninterrupted and adequate supply and distribution of potable water for domestic and 
other purposes, and the proper operation and maintenance of sewerage systems 
which are essential services to public health and safety, are to be ensured at all times. 
The State shall therefore supervise and control the establishment, operation, and 
maintenance of such systems.  
 
SEC 7. Objectives of the Department. – The Department shall: 
 
(a) Promote and adopt water demand management as a national policy to ensure that 
water is optimized, that water efficiency and conservation become a way of life, that 
the recycling and reuse of water and treated wastewater are widely practiced, that 
water is properly priced to encourage efficient use and conservation and that 
rainwater, flood waters, and run-offs are captured or harvested, stored and treated for 
future use; 
 
(b) Prioritize and seek the immediate attainment of universal access to safe, adequate, 
affordable, and sustainable water supply and improved sanitation services for all 
Filipinos in a manner consistent with the protection, preservation, and revival of the 
quality of the country’s water resources, and to adopt all needed measures to advance 


 
 
                              
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the right of the people to a balanced and healthful ecology in accord with the rhythm 
and harmony of nature. 
 
(c) Strengthen and coordinate integrated water resources management planning and 
policy making to ensure sustainable and fair allocation and efficient use of water 
resources among competing uses and users; 
 
(d) Ensure that integrated water resources management is strongly coordinated with land 
use and coastal and multi-hazard planning and management; 
 
(e) Develop sustainably, and manage water sources and water resources toward water 
security, taking into consideration water, land, and related resources aimed at 
increasing water dependability for different uses, optimizing economic benefits and 
social welfare without compromising the sustainability of vital environmental systems; 
 
(f) Strengthen and coordinate policy making and planning towards ensuring the 
availability of water for food security and energy security, as well as towards the 
protection of communities and environments against flood and other water induced 
hazards including sediment hazards;  
 
(g) Ensure that the strategy for water resources development and conservation is 
participatory, and that planners, policymakers and users including community 
members are involved at all levels; 
 
(h) Develop a standardized pricing framework for water use that accounts for 
environmental externalities; and 
 
(i) Ensure that all sources of water, including surface water, groundwater, rainwater, and 
floodwater are identified, mapped, monitored, conserved, and managed for productive 
use and the resulting wastewater is managed properly, reused, and responsibly 
disposed of following approved environmental standards. 
 
SEC.8. Powers and Functions of the Department. – The Department shall have the 
following powers and functions: 
 
I. Policymaking and Planning 
 
(a) Formulate and develop policies to promote and ensure universal access to safe, 
adequate, affordable, and sustainable water supply, and improved sanitation services 
for all Filipinos; 
 
(b) Formulate policies, strategies, and targets in coordination with other relevant entities 
to meet the goals and objectives for water supply and sanitation, water quality, 
irrigation, hydropower, flood control, stormwater utilization, and urban drainage. Such 
policies shall, among other guidelines, integrate the issues of water and sanitation, 
food security, energy, environment and flood control, and climate change; 
 
(c) Ensure that Integrated Water Resources Management (IWRM) is adopted as the 
strategic framework for water management policymaking and planning in the country 


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


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


 
 
                              
11 
 
(1) Polluter’s Fee, which shall be based on the net waste load depending on the 
wastewater charge formula pursuant to Republic Act No. 9275; 
 
(2) Raw water price, which shall take into account, among others, the scarcity of water; 
and 
 
(3) Appropriate payment structures for environmental services: 
 
(f) Deputize LGUs to collect the national fees or charges for resource regulation within 
their respective jurisdictions; 
 
(g) Collect, regularly update, monitor, and analyze water resources data including 
climatology, hydrological and other water-related data and ensure that such data is 
easily accessible by relevant and authorized users; 
 
(h) Establish, operate, and maintain observation station networks and a centralized water 
resources data center for the scientific survey and appraisal of surface and 
groundwater potentials of the country, and determine the annual renewable water 
available per water resources region; 
 
(i) Maintain a database that will contain updated relevant information on water data which 
will be accessible by relevant and authorized users; 
 
(j) Develop and continuously update a computerized decision support system that 
incorporates data management systems relating to acquisition and database, model 
base in terms of physical design, planning and decision models, and user-friendly 
interface concerning graphical and visualization tools;  
 
(k) Conduct and promote special studies and research on water economics and other 
water resources development and management issues and concerns such as climate 
change, weather modification, flood monitoring and modeling, environmental quality, 
and desalination; and 
 
(l) Raise public awareness through information, education and communications 
programs, and build capacities for informed participation in water resources 
management at the national and river-basin level. 
 
III. Institutional Arrangement with Public Water Organizations  
 
(a) Develop guidelines including rules of partnership, between and among the 
Department, field offices of national government agencies, LGUs and other 
stakeholders in water resource management, and facilitate the establishment of multi-
stakeholder river basin organizations (RBOs) per river basin, and strengthen and 
support existing RBOs and monitor their activities; 
 
(b) Develop materials for capacity building and training of prospective RBOs; 
 
(c) Authorize its representatives or any deputized agent to enter any property of public 
dominion with or without prior notice and consent, any private land, building or enclave, 
whether inhabited or not, for the purpose of conducting hydrologic surveys and 


 
 
                              
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investigations, including assessing and evaluating the conditions of water facilities 
installed, and determining compliance with water laws and standards; 
 
(d) Provide technical assistance to water users including farmers, communities, and LGUs 
and other water service providers (WSP) whether directly or in coordination with other 
agencies on all aspects of integrated water resources management;  
 
(e) Respond to consumer complaints, and ensure the adequate promotion of consumer 
interests; 
 
(f) Deputize agents, whether from the public or private sector, to assist in the performance 
of any of the powers and functions of the Department; 
 
(g) Appoint, hire, and maintain adequate staff and personnel, advisers or consultants with 
suitable qualifications and experience, as necessary, subject to existing rules and 
regulations. 
 
IV. Coordination 
 
(a) Coordinate and integrate water resources development activities of the country within 
the context of national plans and policies for social and economic development; 
 
(b) Coordinate with other government agencies, universities, academe and private 
professional groups in all aspects of data gathering, the conduct of special studies and 
research on all related aspects of water resources management and development 
such as climate change, environmental quality, desalination, and the development of 
operating strategies, procedures, and protocols and accompanying computerized 
decision tools for major water facilities;   
 
(c) Coordinate with the concerned and relevant agencies engaged in flood control, flood 
risk management, and drought risk management; and 
 
(d) Coordinate proactively with LGUs to ensure the integration of water resources 
development plans into their comprehensive land use plans (CLUPs), Comprehensive 
Development Plans (CDPs) or Provincial Physical Framework and Development Plan 
(PPFDP).  
 
V. Other Functions 
 
(a) Create when necessary, water resource subsidiaries, instrumentalities, and entities to 
engage in water transmission, water distribution, waste water treatment and 
management, and sanitation in accordance with existing relevant laws.  
 
(b) Enter into contracts, joint venture agreements or understanding, public-private 
partnerships, and memorandum of agreements or understanding, either domestic or 
foreign, relating to investment and financing water-related projects, under such terms 
and conditions as the Department may deem proper and reasonable subject to existing 
laws. 
 


 
 
                              
13 
 
(c) Exercise such other powers and functions necessary or incidental to the effective 
administration and management of the country’s water resources. 
 
SEC. 9. Secretary of the Department of Water Resources. – The authority and 
responsibility for the exercise of the mandate of the Department and for the discharge of its 
powers and functions shall be vested in the Secretary of the Department, hereinafter referred 
to as the Secretary, who shall: 
 
(a) Advise the President on the promulgation of executive or administrative orders, 
regulations, proclamations and other issuances relative to matters under the 
jurisdiction of the Department; 
 
(b) Establish the policies and standards for the operation of the Department pursuant to 
the President’s guidelines; 
 
(c) Promulgate rules and regulations necessary to carry out the objectives, policies, and 
functions of the Department; 
 
(d) Exercise supervision and control over all bureaus and offices under the Department;  
 
(e) Supervise all attached agencies and corporations in accordance with law; 
 
(f) Represent the Department in contracts, awards, and other similar agreements;  
 
(g) Delegate authority for the performance of any power or function, as defined herein to 
officials and employees under his direction as deemed appropriate;  
 
(h) Act as the Chairperson of the governing board of the attached agencies of the 
Department; 
 
(i) Designate and appoint officers and employees of the Department, excluding the 
Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional 
Directors, in accordance with the civil service laws, rules and regulations; and 
 
(j) Perform such other duties and responsibilities as may be provided by law.  
 
SEC. 10. Office of the Secretary. – The Office of the Secretary shall be composed 
of the Secretary, Undersecretary, Assistant Secretary, and the Secretary’s immediate staff.  
 
SEC. 11. Undersecretaries. – The Secretary shall be assisted by not more than five 
(5) Undersecretaries, who shall be appointed by the President upon the recommendation of 
the Secretary namely: Undersecretary for Resource Regulation and Governance, 
Undersecretary for Inland Waters and Water for Agriculture, Undersecretary for Resource 
Development, Undersecretary for Planning and Policy and Undersecretary for Missionary 
Water, Indigenous People, and Special Concerns. 
 
The Secretary is hereby authorized to delineate and assign the respective functional 
areas of responsibility of the Undersecretaries in accordance with the mandate and objectives 
of the Department: Provided, That no Undersecretary shall be assigned purely to 


 
 
                              
14 
 
administrative responsibilities. Within their respective functional areas of responsibility, the 
Undersecretaries shall: 
 
(a) Advise and assist the Secretary in the formulation and implementation of the policies, 
plans, programs and projects of the Department; 
 
(b) Supervise all the operational activities of the assigned units for which the 
Undersecretary is responsible to the Secretary; and 
 
(c) Perform such other functions deemed necessary as may be assigned or delegated by 
the Secretary to promote efficiency and effectiveness in the delivery of public services 
or as may be required by law:  Provided, That the Undersecretary for Planning and 
Policy shall,                           in coordination with the Planning and Policy Service, be 
primarily responsible for advancing current efforts in attaining the ultimate goal of 
universal access to water supply and sanitation systems, and sustainable 
management of water resources under the SDGs, and the integration of water, energy, 
environment and food security. 
 
SEC. 12. Assistant Secretaries. – The Secretary shall be assisted by six (6) Assistant 
Secretaries to be appointed by the President of the Philippines upon the recommendation of 
the Secretary: one each for Planning and Policy Service, Decision Support System Service, 
Resource Regulatory Service, Comptrollership and Financial Management Service, Legal 
and Legislative Service, and Administrative and Human Resources Management Service. 
 
No person shall be appointed Secretary, Undersecretary and Assistant Secretary of 
the Department unless the person is a citizen and resident of the Philippines, of good moral 
character, of proven integrity, competence and expertise in water resource management: 
Provided, That at least one (1) of the Undersecretaries and at least two (2) of the Assistant 
Secretaries shall be career officers. 
 
SEC. 13. Organizational Structure. – The Department shall be composed of the 
following organizational units: 
 
(a) Department Proper. – The Department shall consist of the Office of the Secretary, the 
Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit Office, 
the Public Affairs Office, the Water Pollution Adjudication Board, the Planning and 
Policy Service, Decision Support System Service, Administrative and Human 
Resources Service, Legal and Legislative Service, Comptrollership and Financial 
Management Service, Resource Regulation Service, and the Water Resources 
Regional Offices. 
 
(b) Attached agencies. - The Department shall exercise administrative supervision over 
the following agencies for purposes of policy and program coordination, monitoring, 
and evaluation: 
 
(1) The Local Water Utilities Administration (LWUA), whose mandate, powers, and 
functions are defined in Presidential Decree No. 198, otherwise known as the 
Public Water Utilities Act of 1973, as amended, shall be transferred from the 
Department of Public Works and Highways and attached to the Department. It shall 
continue to primarily function as a specialized lending institution for the promotion, 


 
 
                              
15 
 
development, and financing of local water utilities. In the implementation of its 
functions, the LWUA shall: 
 
(i) prescribe minimum standards and regulations in order to assure acceptable 
standards of construction materials and supplies, maintenance, operation, 
personnel training, accounting and fiscal practices for local water utilities; 
 
(ii) furnish technical assistance and personnel training programs for local water 
utilities; 
 
(iii) monitor and evaluate local water standards; and 
 
(iv) effect system integration, joint investment and operation, district annexation 
and de-annexation whenever economically warranted as amended by Sec. 
22, Presidential Decree No. 768. 
 
(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate, 
powers, and functions are defined under Republic Act No. 6234, as amended 
entitled, An Act Creating The Metropolitan Waterworks And Sewerage System And 
Dissolving The National Waterworks And Sewerage Authority; And For And For 
Other Purposes, shall be transferred from the DPWH and attached to the 
Department: Provided, That the MWSS shall continue to facilitate the exercise by 
the concessionaires of their responsibility; carry out accounting and notification 
functions; monitor, report, and administer loans; perform related functions in 
connection with existing projects; manage and dispose its retained assets; and 
manage and operate the Umiray-Angat Transbasin Project. 
 
(3) The National Irrigation Administration (NIA), whose mandate, powers, and 
functions are defined under Republic Act No. 3601 as amended by Presidential 
Decree No. 552 and Presidential Decree No. 1702; 
 
(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and 
functions are defined under Republic Act No. 4850, as amended entitled, An Act 
Creating The Laguna Lake Development Authority, Prescribing Its Powers, 
Functions And Duties, Providing Funds Therefor, And For Other Purposes shall be 
transferred from the DENR and attached to the Department. 
 
The LLDA shall continue to serve as the lake management and development 
authority similar to a multi-stakeholder river basin organization and shall ensure 
the implementation of the Laguna Lake Master Plan which shall be updated by the 
Department to ensure alignment with the NWRMP.  
 
Any other agency performing water resources management, conservation and 
protection functions may be transferred to the Department as the President deems 
necessary.  
 
(c) Offices, Functions and Personnel to be Completely Placed under the Department. – 
The following offices with their powers, functions, personnel, applicable funds and 
appropriations, records, equipment, and property shall be subsumed under the 
Department: 


 
 
                              
16 
 
(1) The National Water Resources Board (NWRB) with all its divisions and sections, 
whose mandate, powers and functions are provided in Presidential Decree No. 
424, as amended; 
 
(2) The River Basin Control Office (RBCO) of the DENR whose mandate, powers and 
functions are provided in Executive Order No. 510 and Executive Order No. 816, 
as amended; 
 
(3) The Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened 
by virtue of DENR Administrative Order (DAO) 2011-01 to coordinate the efforts of 
the fourteen (14) national agencies covered by the Mandamus Order of the 
Supreme Court to rehabilitate Manila Bay; 
 
(4) The Water Resources Management Division of the Bureau of Soils and Water 
Management of the Department of Agriculture (DA); 
 
(5) The Water Supply and Sanitation Unit of the Department of the Interior and Local 
Government (DILG); and 
 
(6) The Water Quality Management Section of the Environmental Management 
Bureau (EMB) of the DENR. 
 
(d) Functions to be Transferred to the Department. – The following functions of the 
respective agencies, bureaus, and units shall be transferred to the Department:  
 
(1) The hydrological surveys and groundwater mapping function of the Mines and 
Geosciences Bureau (MGB) of the DENR; 
 
(2) The hydrological surveys monitoring of stream flow and water data collection 
function of the Bureau of Design and Bureau of Research and Standards of the 
DPWH; 
 
(3) The protection and conservation of natural wetlands such as lakes, marshes, 
swamps of the Biodiversity Management Bureau of the DENR; and 
 
(4) The planning, programming, administration, monitoring, management of the 
National Sewerage and Septage Management Program (NSSMP) by the DPWH. 
 
(5) The flood management planning and sediment management function of the Flood 
Control Management Cluster of the DPWH; 
 
(6) The Water Resource Management Division and the water research functions of the 
Soils and Water Research Division of the Bureau of Soils and Water Management 
under the DA.  All soil-related functions shall be retained under the Bureau which 
shall be renamed as the Bureau of Soils. 
 
(e) Support Services - The Department shall create the following support services:  
 


 
 
                              
17 
 
(1) The Planning and Policy Service shall provide the Department with the capability 
to undertake water infrastructure development planning and programming, and 
shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to water resources planning; 
(ii) 
Assist the Undersecretary for Planning and Policy on all matters related to 
the specific functions of the position; 
(iii) 
Formulate strategies and priorities for water resources management and 
development consistent with national development objectives, and initiate 
or undertake relevant surveys for development planning; 
(iv) 
Develop and regularly update a comprehensive and integrated National 
Water Resources Management Plan and ensure its integration into existing 
land use plans; 
(v) 
Coordinate river-basin planning following the integrated water resources 
management framework and the river-basin approach; 
(vi) 
Formulate or update existing River Basin Master or Comprehensive Plans 
which includes all aspects of water management and development such as   
water supply and sanitation, irrigation, flood control and stormwater or urban 
drainage, drought risk management, water resource development systems 
and other public water works projects, including phasing of implementation; 
(vii) Identify, based on the river basin master plan, priority packages for water 
infrastructure development per river basin, including water supply, 
sanitation, irrigation, flood control and stormwater or urban drainage, 
drought risk management, water resource development systems and other 
public works projects, package project proposals for funding and prioritize 
project implementation and the allocation of funds and other resources and 
undertake or supervise and evaluate the conduct of feasibility studies and 
project preparation thereof; 
(viii) Evaluate and appraise all regional and inter-regional infrastructure water 
development plans and programs as to their feasibility and consistency with 
approved strategies and medium and long -term plans;  
(ix) 
Gather, analyze, and organize needed statistical data and information;  
(x) 
Provide technical assistance related to its functions to the other services, 
bureaus and the regional offices as needed;  
(xi) 
Conduct hydrological and hydraulic surveys and assessments of surface 
waters;  
(xii) Develop general criteria and standards on project investigation, formulation, 
planning;  
(xiii) Develop guidelines and standards on social inclusion in water resources 
management and ensure policies, programs and plans are compliant with 
the gender and development framework of the government;  
(xiv) Coordinate closely with PAGASA for rainfall and other climate data which 
shall be considered in the planning for water resources development and 
management and for various water infrastructure; and  
(xv) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective attainment of the abovementioned 
objectives. 
 
(2) The Decision Support System Service shall provide the Department with water 
resource management tools and computerized decision support system that 


 
 
                              
18 
 
incorporates a data management system relating to acquisition and database and 
model base in terms of physical design, planning and decision models including 
services related to networking, data management, and information   and knowledge 
or learning management systems for administrative and non-technical support. It 
shall provide the Secretary timely reports on the status of various Department 
projects and activities. For this purpose, it shall exercise the following functions:  
(i) 
Provide the Secretary the necessary data and processed information to aid 
in policy and management decisions under the mandate of the Department; 
 
(ii) 
Publish available real-time raw water data as well as verified or validated 
water data in print or electronic form using latest internet technology; 
 
(iii) 
Conduct and publish in print and/or electronic form, standard data analysis 
such as basic statistical analysis, trend analysis, analysis of runs, and 
cluster analysis; 
 
(iv) 
Develop 
and 
continuously 
update 
water 
resource 
management, 
computerized decision support systems (DSS) that incorporate data 
management systems relating to acquisition and database, model base in 
terms of physical, design, planning and decision models, and user-friendly 
interface such as graphical and visualization tools.  
 
The DSS is composed of: 1) a measurement or data acquisition system; 2) 
information or database management system; 3) analytical and numerical 
models for design, planning, decision or evaluation purposes, and 4) a user-
friendly interface which includes graphical interface or visualization tools.  
 
(v) 
Develop and maintain specific models to include the following: 
a) long-term climatologic and weather forecasting model; 
b) watershed models and river-flood plain models; 
c) groundwater models and coupled to surface water models; 
d) flood forecasting model for major rivers; 
e) optimization-simulation management models for watershed conservation, 
conjunctive surface and groundwater use, irrigation scheduling, normal and 
emergency operations of multi-purpose reservoirs; and 
f) water quality and ecological models. 
 
(vi) 
Develop and administer the management information system and 
knowledge systems of the Department to: 
a) Retrieve, process, and monitor information on all projects and activities in 
the web portal; 
b) Conduct and apply systems and process engineering, software 
development, software configuration management;  
c) Develop and manage its corporate database, unified database for water 
industry, data warehouse, other water information resources, library 
services and document management and archiving services;  
d) Develop and manage its Information and Communications Technology 
(ICT) infrastructure and ICT related-services including computer 
networking and voice communications services and data exchange; and   


 
 
                              
19 
 
e) Manage the literacy and training services of the Department on various ICT 
and, Knowledge Management (KM) tools and applications, including 
information and knowledge management.  
 
(vii) Perform such other related functions and activities which are necessary for 
the effective administration of the management information and knowledge 
systems of the Department. 
 
(3) The Administrative and Human Resource Service shall provide the Department 
with services relating to human resources development, personnel, records, 
facilities maintenance, medical and dental, security, property and procurement 
services, and shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to internal administration and 
human resources management;  
(ii) 
Prepare and implement an integrated personnel development plan that shall 
include provisions for merit promotions, performance evaluation, job 
rotation, incentive awards systems, and health and welfare services; 
(iii) 
Provide services related to human resource training, education and 
development including manpower, career planning and forecasting, and 
development of indigenous training materials;  
(iv) 
Develop, establish, and maintain an efficient and cost-effective property 
procurement system and facilities and coordinate or otherwise interface with 
relevant agencies, whether government or private, for the purpose of 
developing or upgrading the system; 
(v) 
Develop, establish, and maintain an efficient and effective security system 
covering, among others, personnel, physical installations, facilities, 
equipment, documents and materials including the conduct of security 
investigations;  
(vi) 
Coordinate with the appropriate government agencies for a more efficient 
conduct of administrative processes;  
(vii) Develop, establish, and maintain an efficient records system;  
(viii) Provide assistance in its area of specialization to the Department Proper, 
bureaus and regional and water district offices and, when requested, to the 
government agencies and corporations attached to the Department; and 
(ix) 
Perform such other related functions and activities which are necessary for 
the effective management of the resources of the Department, including its 
human resources.  
 
(4) The Legal and Legislative Research  Service shall provide the Department with 
services on such legal affairs as contract letting and litigation, legal and legislative 
research, complaints and investigation, legal counselling and other matters of law, 
and shall exercise the following functions:  
 
(i) 
Advise the Secretary on all matters relating to legal and legislative affairs; 
(ii) 
Prepare Department contracts and legal instruments, review and interpret 
all contracts and agreements entered into by the Department and evaluate 
all legal proposals; 
(iii) 
Conduct administrative investigation and the review of administrative 
charges against officers and employees of the Department; 


 
 
                              
20 
 
(iv) 
Exercise functional jurisdiction over the legal staffs of Regional Offices; 
(v) 
Provide legal assistance to the Department Proper, the bureaus and 
regional offices and when requested, the attached corporations; 
(vi) 
Develop and prepare the Department’s Legislative Agenda, recommend 
presidential certification of the urgency of priority water bills, and other 
water-related legislation;  
(vii) Coordinate and maintain linkages between and among the various offices, 
bureaus, regional offices and attached agencies to the Department along 
with other government agencies on policy matters affecting the 
Department’s mandate in relation to legislation; 
(viii) Perform liaison and networking activities in relation to the enactment of 
related laws relating to water resources issues in legislative policymaking 
bodies such as the Senate of the Philippines, the House of Representatives, 
and the various Sanggunians;  
(ix) 
Monitor the progress of the Department’s priority or certified bills to ensure 
their passage; and 
(x) 
Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.  
 
(5) The Comptrollership and Financial Management Service shall provide the 
Department   with coordinated services relating to financial systems and 
procedures, budget, cash, accounting, and all financial housekeeping matters, and 
shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to the accounting of government 
expenditures and receipts, budgeting and cash management, project 
finances and financial systems and procedures;  
(ii) 
Prepare budget proposals and pursue formal budget authorizations, 
undertake budget execution, and prepare and submit all appropriate reports 
to the proper offices; 
(iii) 
Develop and maintain accounting, financial and assets management 
systems, procedures and practices in the Department Proper, Bureaus and 
Regional Offices; 
(iv) 
Review and appraise systems and procedures, organizational structure, 
assets management practices, accounting, and other records, reports, and 
performance standards such as budgets and standard costs of the 
Department, bureaus, and regional offices; 
(v) 
Provide assistance in its area of specialization to any unit of the Department 
and, when requested, to government corporations and councils attached to 
the Department; and 
(vi) 
Perform such other related functions and activities which are necessary for 
the effective financial management of the Department. 
 
(6) The Resource Regulation Service shall provide the Department with services for 
the effective regulation of all water-related services and activities and shall exercise 
the following functions: 
 
(i) 
Advise the Secretary on all matters relating to resource regulations; 


 
 
                              
21 
 
(ii) 
Determine, grant, and regulate water rights for the appropriate, optimal and 
sustainable use of surface and ground water; 
(iii) 
Determine and evaluate waterworks and sewerage licenses, and submit 
evaluation results to the Water Regulatory Commission for the latter’s 
consideration in granting of licenses; 
(iv) 
Investigate violations of the water rights and the Water Code, and impose 
the appropriate sanctions in accordance with existing laws, rules and 
regulations    as well as future rules and regulations which the Department 
shall promulgate; 
(v) 
Adjudicate water use conflicts; and 
(vi) 
Perform such other related functions and activities which are necessary for 
the effective regulation of water-related services. 
 
(7) The Internal Audit Service shall regularly conduct a comprehensive audit of various 
Department activities and shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to management control and 
operations audit; 
(ii) 
Conduct a performance audit of the management and operations of the 
Department, its activities, the performance of all units, and determine the 
degree of compliance of all operating units with established objectives, 
policies, standards, methods and procedures, government regulations and 
contractual obligations of the Department; 
(iii) 
Review and appraise systems and procedures, organizational structure, 
assets management practices, accounting and other records, and 
performance standards such as budgets and standard costs of the 
Department Proper, bureaus and regional offices; 
(iv) 
Analyze and evaluate management deficiencies and recommend realistic 
courses of action; and 
(v) 
Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.  
 
(8) The Public Affairs Service shall enhance relations with all stakeholders including 
the media, for the effective dissemination of information relating to water-related 
issues, including important announcements on policies and activities of the 
department that is of interest to the general public. It shall ensure that women, men, 
elderly, and people with disabilities shall be consulted, organized, and take active 
part in all aspects of water resources development and management activities. It 
shall also lead the planning and organizing of special events, and shall exercise 
the following functions: 
 
(i) 
Public Awareness 
a) Advise the Secretary on matters pertaining to public affairs; 
b) Develop 
and 
supervise 
the 
implementation 
of 
comprehensible 
communications programs on relevant policies, programs and plans of the 
Department; 
c) Produce and supervise the dissemination of communication materials in 
line with the priorities of the Department and national government public 
information programs; 


 
 
                              
22 
 
d) Conduct public opinion and attitude surveys to identify the interests and 
concerns of the stakeholders of the Department; 
e) Establish policies on the presentation and publication of the content of the 
communication materials for dissemination to print and broadcast media; 
f) Establish and maintain linkages with the tri-media and a presence in social 
media; 
g) Coordinate the conduct of interviews and news conferences; 
h) Make public announcements on matters relating to the work and activities 
of the Department through the print and broadcast media, either through 
press releases or live interviews; 
i) Coordinate with various Department units, concerned government 
agencies, tri-media and other stakeholders on matters related to the above-
enumerated functions; and 
j) Coordinate with the appropriate national government agencies involved in 
public information affairs. 
 
(ii) 
Promote Participation 
a) Conduct public consultations and discussions;  
b) Develop and disseminate relevant and appropriate materials and programs 
for public information and education, as well as advocacy campaign; 
c) Conduct seminars and workshops involving the LGUs and the general 
public on current water issues and problems; and 
d) Conduct capability building seminars of various stakeholders to promote 
meaningful participation in the Department’s policy making, planning, 
development and implementation of various programs and projects. 
 
(iii) Special Events 
a) Coordinate the organization and promotion of special events and water 
exhibits; 
b) Act as the focal office for all water related events; and 
c) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.  
 
(f) Bureaus. – The Department shall create bureaus which shall each be headed by a 
Bureau Director. The Bureau Director shall be responsible for the efficient and 
effective discharge of the functions of the Bureau concerned. The Bureau Director 
shall be assisted by one (1) Assistant Director. 
 
(1) Bureau of Flood Control and Drainage shall plan and design flood control and 
drainage     structures    and   facilities   in     accordance with technical standards, 
guidelines and manuals. For this purpose, it shall have the following duties and 
responsibilities: 
(i) 
Formulate policy, strategies and programs on flood risk management in the 
context of integrated flood management (IFM) which integrates water, land, 
coastal zone and multi-hazard management. In integrating land use 
planning and water management, the Department shall harmonize and 
synthesize plans to enable the sharing of information between land-use 
planning and   water management authorities. In this regard, a holistic 
approach shall be adopted by making the IFM a part of a wider risk or multi-


 
 
                              
23 
 
hazard management system that includes earthquakes, landslides, fires, 
tsunami, and other calamities of the same gravity or nature; 
(ii) 
Integrate climate change and disaster risk reduction and management in 
policies and plans; 
(iii) Prepare master plans of flood management and drainage in river basins in 
coordination with the concerned water resources region and river basin 
organizations;  
(iv) Prepare master plans for urban drainage in cities and municipalities; 
(v) 
Prepare feasibility studies of recommended measures in the master plans; 
(vi) Plan and design structural measures for flood control and drainage; 
(vii) Implement and collaborate with concerned agencies on the formulation and 
adoption of non-structural measures for flood control and drainage; 
(viii) Patrol and investigate rivers, and monitor stream flows; 
(ix) Conduct 
post-disaster 
investigation 
and 
evaluation 
and 
damage 
assessment of flood infrastructures after extreme events; 
(x) 
Conduct research and development on water and sediment-related 
disasters;  
(xi) Develop design guidelines, criteria, and standards on flood control and 
drainage structures; 
(xii) Provide technical assistance to other agencies, LGUs, and other 
stakeholders;  
(xiii) Advise the Secretary on declaring flood control areas and recommend 
guidelines for flood plain management plans in these areas; and  
(xiv) Perform such related activities which are necessary for the effective 
performance of its functions. 
 
(2) Bureau of Water Quality Management shall supervise and exercise control over all 
aspects of water quality management to ensure the sustainability of the country’s 
water resources and the protection of the environment. It should take into account 
proper and integrated treatment of freshwater and wastewater within the whole 
process. For this purpose, the Bureau shall exercise the following functions: 
(i) 
Establish water quality guidelines for freshwater and      coastal or marine 
waters as basis for classifying water bodies in the country. Specifically, 
develop water quality indices or composite metrics to measure the quality 
status and health of natural water bodies in relation to ecological integrity 
and function; 
(ii) 
Establish effluent standards for point discharges to receiving bodies of 
water;  
(iii) Establish internationally accepted procedures for sampling and analysis;  
(iv) Prepare an integrated water quality management framework; 
(v) 
Prepare the ten-year water quality management plans for each water quality 
management area as part of the River Basin Master Plans and in support of 
the NWRMP; 
(vi) Classify groundwater sources and prepare a national groundwater 
vulnerability map; 
(vii) Classify or reclassify all water bodies according to their beneficial usages 
using the established water quality guidelines established; 
(viii) Issue permits, clearances, and similar instruments pursuant to the Clean 
Water Act of 2004; 
(ix) Collect the wastewater discharge fees for all permittees; 


 
 
                              
24 
 
(x) 
Monitor the compliance of water discharge permittees with the effluent 
standards;  
(xi) Regularly monitor the water quality of major water bodies in the country and 
analyze the data to identify possible sources of pollution;  
(xii) Issue notices of violations and/or cease and desist orders for those found in 
violation;  
(xiii) File the needed cases against violators with the Water Pollution Adjudication 
Board (WPAB);  
(xiv) Serve as secretariat of the WPAB; and  
(xv) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.  
 
(4) A Water Resources Regional Office (WRRO) shall be organized per water 
resources region and shall be responsible for implementing the mandates, powers 
and duties of the Department at the field level, except for policymaking which will 
be vested solely in the Department. The formulation of the master plan for the 
nearby river basins such as the Pasig-Marikina-Laguna Lake-Cavite, shall be the 
responsibility of the Department. Each WRRO shall perform the following duties 
and responsibilities: 
 
(i) 
Formulate or update and coordinate the river basin master plans for river 
basins within its jurisdictions ensuring consistency with the National Water 
Resources Management Framework Plan;  
(ii) 
Advocate and strongly support the creation and functioning of multi-
stakeholder river basin organizations (RBOs) and serve as the secretariat 
of the said RBOs; 
(iii) Undertake and evaluate the planning, design, and work supervision 
functions   of the Department for the water infrastructures within the region; 
(iv) Ensure the implementation of laws, policies, programs, rules and 
regulations regarding the abovementioned infrastructure as well as public 
and private physical structures; 
(v) 
Provide technical assistance related to the water-related functions of other 
agencies within the region especially the local government;  
(vi) Coordinate 
with 
other 
departments, 
agencies, 
institutions 
and 
organizations, especially local government units within the region in the 
planning and implementation of the river basin master plans; 
(vii) Conduct consultations with the local communities, take appropriate 
measures to ensure that the services of the Department are responsive, and 
recommend such appropriate actions as may be necessary; and  
(viii) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned   
objectives.  
 
The Department shall retain existing Project Management Offices as may be required, 
which shall be under the supervision and control of the appropriate Water Resources 
Regional Office unless otherwise determined by the Secretary for reasons of supra- regional 
scope, magnitude, and multi-functional coverage. 
 


 
 
                              
25 
 
Each Water Resources Regional Office shall be headed by a Water Resources 
Regional Director who shall be responsible for efficiently and effectively carrying out the 
duties and responsibilities of the Office. Towards this end, the Water Resources Regional 
Director shall exercise functional and administrative supervision over all units within the 
region and is authorized to commit resources and assign personnel to integrated regional 
water resources management, water supply and sanitation management, and flood control 
and flood risk management initiatives. The Water Resources Regional Director shall also 
perform such other related duties and responsibilities as may be assigned or delegated by 
the Secretary or as may be required by law. 
 
The Water Resources Regional Director shall be assisted by two (2) Assistant Water 
Resources Regional Office Directors who shall exercise supervision over (1) the planning, 
project design and evaluation function and (2) technical assistance to the River Basin 
Organizations within the water resources region. 
 
SEC. 14. Water Pollution Adjudication Board. – There is hereby created a Water 
Pollution Adjudication Board under the Office of the Secretary. The Board shall be composed 
of the Secretary as Chairperson, two (2) Undersecretaries as may be designated by the 
Secretary, the Director of Water Quality Management Bureau, and three (3) other 
representatives from other stakeholders to be designated by the Secretary as members. 
 
The Board shall assume the powers and functions of the National Pollution Control 
Commission with respect to the adjudication of water pollution cases under Republic Act No. 
3931 entitled, An Act Creating The National Water And Air Pollution Control Commission, 
Presidential Decree 984 entitled Providing For The Revision Of Republic Act No. 3931, 
Commonly Known as the Pollution Control Law, And For Other Purposes, particularly with 
respect to Section 6 letters e, f, g, j, k and Republic Act No. 9275. The Bureau of Water 
Quality Management shall serve as the Secretariat of the Board. These powers and functions 
may be delegated to the field officers of the Department in accordance with rules and 
regulations to be promulgated by the Board. 
 
CHAPTER III 
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT       
 
SEC. 15. Interface and Institutional Arrangements with Other Agencies. – 
(a) The Department of Health (DOH) shall continue to have primary authority and 
responsibility for setting and enforcing drinking water quality standards. The 
Department shall coordinate with the DOH in this aspect, and shall ensure consistency 
of standards and targets, as well as the compliance of permittees with mandated 
standards;  
 
(b) The Department of Environment and Natural Resources (DENR) shall continue to 
have primary authority and responsibility for protecting the environment and managing 
the country’s watersheds; 
 
(c) The Department of Energy (DOE) and the National Power Corporation (NPC) shall 
continue to have primary authority and responsibility for establishing and operating 
hydropower plants, but shall ensure that hydropower plant development plans are 
consistent with the National Water Development and Management Plan; 


 
 
                              
26 
 
 
(d) The Department shall coordinate with the DA to ensure agricultural development that 
reduces long-term pollution for surface water and groundwater, and agricultural and 
industrial economic development that employs water efficiency, water recycling or 
reuse, and the appropriate treatment of wastewater; 
 
(e) The Department shall coordinate with the National Disaster Risk Reduction 
Management Council (NDRRMC) to ensure that its plans and designs for flood control, 
flood risk management and drought risk management are aligned with the objectives 
and plans of the Department;  
 
(f) The Department shall coordinate with Climate Change Commission (CCC), Philippine 
Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), and 
National Mapping and Resource Information Authority (NAMRIA) for scientific studies, 
integrated surveys, mapping, charting, and decision support systems  
 
(g) The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources;  
 
(h) The Department shall coordinate with the Philippine Reclamation Authority and 
economic zone authorities on water resources development and water requirements 
within reclamation areas and economic zones, respectively; and  
 
(i) The Department shall coordinate with relevant government agencies, including local 
government units (LGUs), with respect to development projects and shall ensure 
cross-cutting collaboration between and among all water subsectors and facilitate 
inter-agency subsector coordination, strategic development, planning, monitoring and 
provision of technical, institutional and financial capacity building support to their 
different stakeholders at the water subsector level.  
 
SEC. 16. National Water Sector Policy Board. – The National Water Sector Policy 
Board (NWSPB) shall be created and shall be headed by the Secretary of the Department of 
Water Resources with the Secretary of the National Economic and Development Authority as 
the Vice-Chairperson, and the Secretaries of the      DOH,      DILG,      DOE,      DA, 
Department of  Social Welfare and Development;       DPWH; Department of Budget and 
Management (DBM); Office of the President,  and DENR, and National Commission on 
Indigenous Peoples as members.  The Department shall provide personnel to serve as 
Secretariat to the Board. 
 
SEC. 17. Powers and Functions of the National Water Sector Policy Board. – The 
NWSPB shall perform policymaking, coordination, integration, supervision, monitoring and 
evaluation functions, and shall have the following responsibilities: 
 
(a) Approve the NWRMP which shall serve as a principal guide to water management 
efforts in the country and shall be reviewed every five (5)-years interval, or as may be 
deemed necessary, in order to ensure its relevance to the times; 
 
(b) Provide overall policy direction and recommend policies on water resources requiring 
Presidential decision; 
 


 
 
                              
27 
 
(c) Advise the President on the status of water management and supply, recommend to 
the President the declaration of a state calamity in areas affected by water supply, and 
submit proposals to restore normalcy in the affected areas; 
 
(d) Ensure a multi-stakeholder participation in the development, updating, and sharing of 
information system as policy, planning and decision-making tools consistent with 
IWRM. 
 
SEC. 18. Transfer of Rights and Obligations. – The Department shall, by virtue of 
this Act, be subrogated to all the rights and assume all the obligations of the government 
agencies and units whose powers and functions have been subsumed, absorbed, transferred 
or attached to the Department in accordance with the rules and regulations of the 
Commission on Audit, and the Civil Service Commission, and other applicable laws. The 
transfer of powers and functions as herein provided shall take effect within six (6) months of 
the effectivity of this Act. As such, all affected agencies, offices, units shall continue to 
function under their present mandates.  
 
CHAPTER IV 
WATER REGULATORY COMMISSION 
 
SEC.19. Water Regulatory Commission. – There is hereby created and established 
as an independent, quasi-judicial regulatory body to be known as the Water Regulatory 
Commission, hereinafter referred to as the Commission, which shall be organized within one 
hundred twenty (120) days after the effectivity of this Act.  
 
The Commission shall be placed under the administrative supervision of the 
Department as an attached agency. 
 
The Commission shall have a Board of Commissioners, and shall be vested with 
powers and functions, as conferred and set forth hereunder. 
 
SEC. 20.  The Regulatory Units. – The regulatory units of the Commission shall be 
composed of the central regulatory unit and the regional regulatory units. 
 
The economic regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, 
PEZA, and TIEZA are hereby transferred to the Commission, and shall collectively comprise 
its central regulatory unit for water supply and sanitation services that: (a) provide services 
to more than one province; and (b) are owned, operated and/or maintained by special 
economic zones and Metro Manila concessionaires. 
 
The regional regulatory units shall be established by the Commission in accordance 
with this Act and the rules, regulations, guidelines, and standards that the Commission shall 
issue. 
 
SEC. 21. Powers and Functions of the Commission. – The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether private or 
public, providing or intending to provide levels II & III water supply, including suppliers to 
subdivisions and other service providers, sewerage, and/or septage treatment and disposal 
services for domestic, residential, institutional, industrial, or commercial use. 
 


 
 
                              
28 
 
The Commission shall exercise the following powers and functions: 
 
(a) Issue and promulgate rules, regulations and guidelines as may be necessary to 
implement and enforce its powers and functions under this Act; 
 
(b) Promulgate and enforce just and reasonable technical standards, classifications 
and measurements of service; 
 
(c) Establish rules and regulations to monitor, avoid, and provide remedies for any 
market power abuse or anti-competitive or discriminatory act or behavior by or 
against any participant in the water supply and sanitation sector.  Upon finding that 
a market participant has engaged in, or has fallen victim to such act or behavior, 
the Commission shall act to stop or redress the same.  Such remedies may, without 
limitation, include the imposition of price controls, issuance of injunctions, 
requirement of divestment or disgorgement of excess profits, invalidation of 
contracts and imposition of fines and penalties pursuant to this Act. 
 
(d) Adopt and require that books, records, and accounts be kept and maintained in 
accordance with the prescribed uniform accounting system; 
 
(e) Fix and determine proper and adequate rates of depreciation of properties and 
equipment used in water supply and sanitation services; 
 
(f) Impose and collect annual levies determined as a percentage of gross revenue 
accruing in relation to the licensed activities, and reasonable fees and surcharges 
as may be necessary for achieving the purposes, powers and functions of the 
Commission; 
 
(g) Require the submission reports of finances and operations, verified under oaths by 
the owner or president and secretary of the board of the licensee; 
 
(h) Determine and require the monitoring and submission of such data, statistics and 
other information from the regulatory units and any or all licensees as may be 
necessary for the effective and efficient exercise of its duties, functions, powers 
and responsibilities. 
 
(i) Investigate, motu proprio or upon a written complaint, any matter concerning the 
operation of the service and issues on price manipulation and anti-competitive 
behavior;  
 
(j) Impose penalties and fines against any licensee or against its owners, directors, 
officers, agents or representatives for any violation of this Act or of the license, 
order, rule regulation or requirement issued by the Commission;  
 
(k) Require any licensee to pay the actual expenses incurred by the Commission in 
any investigation if it shall be found that a licensee violated any provision of this 
Act or of the license, order, rule regulation or requirement issued by the 
Commission; 
 
(l) Advise, apprise and coordinate with other relevant agencies of the national or local 


 
 
                              
29 
 
government on any matter relating to water supply and sanitation services; 
 
(m)Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
 
(n) Appoint an interim or temporary management committee upon appeal and after 
due hearing, to ensure continuity of service in case a licensee fails to meet 
conditions of the license and the concerned Regulatory Unit fails or refuses to 
appoint an interim management committee as provided in the following section. 
 
(o) Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, 
with suitable qualifications and experience, as necessary; 
 
(p) Exercise original and exclusive jurisdiction over all cases contesting rates, fees, 
fines and penalties imposed by the regulatory units in the exercise of their powers, 
functions and responsibilities, as provided under this Act, and over all cases 
involving disputes between and among participants or stakeholders in the water 
supply and sanitation services; and 
 
(q) Such other incidental powers and functions as may be necessary to attain the 
objectives of this Act.  
 
SEC. 22. Powers and Functions of the Regulatory Units. – The regulatory units of 
the Commission shall have the following powers and functions: 
 
(a) Issue licenses authorizing the operation of water supply and sanitation services in 
any specified area or areas within the Philippines. 
 
(b) Impose fines, charges and other penalties upon any provider and/or its officers 
and stockholders who shall fail or refuse to register or obtain a license prior to 
operation or commencement of business, as provided hereunder. 
 
(c) Review, determine, fix, and approve, consistent with the rules, guidelines, 
procedures and methodologies which the Commission shall provide, proposed 
water and sewerage and septage management tariffs, rates and charges that 
licensees may impose upon their consumers;  
 
(d) Appraise and value property and equipment used by licensees in providing water 
supply and sanitation services; 
 
(e) Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities; 
 
(f) Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu propio price manipulation and anti-
competitive behavior; 
 
(g) Investigate accidents directly or indirectly arising from or connected with the 
maintenance or operation of the service, and make such order or recommendation 
as the public interest may warrant; 


 
 
                              
30 
 
 
(h) Require the review and/or approval of contracts or agreements that may impact 
on the tariff and rates of service provision entered into by service providers upon 
petition or motu propio where in its determination public interest so dictates; 
 
(i) Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment 
reports; 
 
(j) Impose and collect annual levies determined as a percentage of gross revenue 
accruing in relation to the licensed activities, and reasonable fees and surcharges 
as may be necessary for achieving the purposes, powers, and functions of the 
regulator; 
 
(k) Conduct benchmarking and monitor the performance of licensees or utilities under 
their jurisdiction, and publish reports detailing the results thereof, as may be 
necessary                           or required by the Commission; 
 
(l) Amend, modify, suspend, or revoke any license issued by them, after due notice 
and hearing, on any of the following grounds: 
(1) when the facts and circumstances on the strength of which the license was 
issued have been materially misrepresented or have materially changed;  
(2) where the licensee has failed to meet or comply with terms, conditions, and 
performance targets, including but not limited to service expansion, that may 
have been set in the license; 
(3) where the licensee is found to be manifestly inefficient in the operation of or 
provision of water supply and sanitation services in its area; or 
(4) when the licensee thereof has violated or willfully refused to comply with any 
order, rule or regulation of the Commission or any provision of this Act; 
 
(m) Appoint an interim management committee to ensure continuity of service in case 
a licensee fails to meet the conditions of the license; and 
 
(n) Submit performance plans and reports as required by the Commission. 
 
SEC. 23. Composition of the Water Regulatory Commission. –  
 
(a) The Commission shall be a collegial body composed of five (5) full-time members 
consisting of a Chairperson and four (4) members, who shall all be appointed by the 
President of the Philippines. All members of the Commission must be citizens and 
residents of the Philippines, at least thirty five (35) years of age, and of good moral 
character, of recognized integrity and competence in the field of law, business, 
commerce, finance, accounting or public administration, water or utility economics, 
management, physical or engineering services, hydrology and other related 
services, with at least three (3) years of actual and distinguished experience in their 
respective fields of expertise: Provided, That out of the four (4) members of the 
Commission,  at least one (1) shall be a member of the Philippine Bar with at least 
ten (10) years of experience in the active practice of law, and at least one (1) shall 
be a certified public accountant with at least ten (10) years of experience in active 
practice. 


 
 
                              
31 
 
 
(b) The term of office of each member of the Commission shall be seven (7) years: 
Provided, That among the members first appointed, the Chairperson shall serve for 
a period of seven (7) years, two (2) members shall serve for  five (5) years and the 
other two (2) members shall serve for three (3) years: Provided further, That any 
member whose term has expired as specified herein shall serve as such until a 
successor shall have been appointed and qualified: Provided furthermore, That any 
appointment to fill a vacancy in the Commission arising from death, removal, 
retirement or resignation shall be made only for the unexpired term: Provided, finally, 
That in no case shall any member serve for more than seven (7) years in the 
Commission.  
 
(c) The Commission shall meet as often as may be necessary on such day or days as 
the Chairperson may fix. The presence of at least three (3) members of the 
Commission shall constitute a quorum, which shall be necessary for the transaction 
of any business. The affirmative vote of majority of the members of the Commission 
where a quorum is present shall be necessary for the adoption of any order, 
resolution, decisions, or other act of the Commission in the exercise of its quasi-
judicial functions: Provided, That in promulgating rules, regulations, guidelines and 
in exercising its quasi-legislative functions, an affirmative vote of three (3) members 
shall be required.  
(d) The Chairperson of the Commission shall exercise general executive control and 
supervision over the Commission and its members, staff and personnel, agents and 
representatives. Within three (3) months from the creation of the Commission and 
the appointment of all Members of the Commission, the Chairperson shall determine 
and establish the organizational structure and plantilla positions necessary to carry 
out the powers and functions of the Commission, including those of the central and 
provincial regulatory units subject to the review and approval of the DBM.  
 
The plantilla positions of the Commission shall be filled by regular appointments in 
accordance with Civil Service laws, rules, and regulations.  Members of the 
Commission shall enjoy security of tenure and shall not be suspended or removed 
from office except for just cause as specified by law. 
 
(e) The Chairperson and members of the Commission or any of their relatives within the 
fourth civil degree of consanguinity or affinity, legitimate or common law, shall be 
prohibited from holding any interest whatsoever, either as investor, stockholder, 
officer or director, in any company or entity engaged in provision of water supply and 
distribution, septage management and sewerage services and must, therefore, 
divest through sale or legal disposition of any and all interests in the water sector 
upon assumption to office. 
 
SEC. 24. Secretariat of the Commission. – The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services including 
the following:  
 
(a) Provide the necessary technical inputs and secretariat support to the Commission to 
facilitate the conduct of its functions;  
(b) Coordinate with Regulatory Units to ensure proper implementation of the rules, 
regulations and guidelines promulgated by the Commission; 


 
 
                              
32 
 
(c) Monitor and assess activities of the Regulatory Units vis-à-vis their respective annual 
performance plans and targets; 
(d) Maintain a database on the water supply and sanitation subsector; and  
(e) Coordinate with other relevant agencies of the national or local government on any 
matter relating to water supply and sanitation. 
 
SEC. 25. Executive Director. – The Commission shall appoint an Executive Director 
who shall head the Commission Secretariat, keep and maintain the official records of the 
Commission, render a report on the proceedings of the Commission, and administer oaths in 
all matters falling within the jurisdiction of the Commission.  
 
The Executive Director shall be responsible for the effective implementation of the 
policies, plans, programs, rules, regulations, and directives of the Commission; coordinate 
and supervise the activities of the different operating units under the Commission; and 
perform such functions as may be assigned by the Chairperson and/or other members of the 
Commission.  
 
SEC. 26. Compensation and Other Emoluments. – The compensation of the 
members of the Commission and its staff shall conform to provisions of Republic Act No. 
6758 as amended, otherwise known as the Compensation and Position Classification Act of 
1989. 
 
CHAPTER V 
REGISTRATION AND LICENSING 
 
SEC. 27. Registration and Licensing of All Water Supply and Sanitation 
Services. – All water supply and sanitation service providers, including bulk water suppliers 
and those providing services to subdivisions and other service providers, shall register with 
the Commission and, subject to such rules, guidelines, procedures and other issuances of 
the Commission, obtain a license to operate from the appropriate regulatory units. 
 
The Commission shall ensure that the grant and revocation of licenses are carried out 
fairly, transparently, and without discrimination. Issuances of the Commission shall specify, 
among others, the qualifications, requirements, and procedure for the grant and revocation 
of licenses including the standards and performance targets that shall continuously be 
complied with to keep the licenses valid. 
 
Unless otherwise provided in this Act or by the Commission, no public water supply 
and sanitation service provider shall commence or conduct the business of providing water 
supply and sanitation services without first obtaining a license. 
 
Concession agreements and other contracts for water supply provision and water 
sanitation and treatment services currently existing shall remain valid and enforceable unless 
otherwise terminated, after due notice and hearing for reasons provided in the existing terms 
and conditions under the concession or service agreement or contract, or when invalidated 
by the Commission, after due notice and hearing, where national security, national 
emergency or public interest so dictates. 
 
SEC 28.  Conditions of License. – The Commission or the concerned regulatory unit, 
may impose such conditions on the licensee as it may deem necessary, such as: 


 
 
                              
33 
 
(a) Tariffs, rates and charges that may be imposed from its customers or consumers. 
(b) Term fixing the duration of the privilege.  
(c) Grounds for modification, suspension or cancellation of the License. 
(d) Minimum technical performance and service level standards. 
(e) Expansion targets and service level improvements over time. 
(f) Restrictions or conditions for transferability of the business or controlling interest 
in the business. 
(g) Reportorial requirements and obligations of the grantee. 
(h) Submission to annual performance audit by the Commission or its duly authorized 
representative(s). 
 
The Commission shall specify the requirements and procedure for existing holders of 
a Certificate of Public Convenience (CPC), Certificates of Public Convenience and Necessity 
(CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by LWUA, to convert 
their existing certificates into licenses to operate in accordance with Sec. 27 herein. 
 
All existing providers of water supply and sanitation services without a legal and valid 
Certificate of Public Convenience, Certificate of Public Convenience and Necessity, or 
Certificate of Conformance shall register with the Commission and apply for a license within 
six (6) months from the effectivity of this Act. 
 
SEC. 29. Rights and Duties of Licensees. – 
(a) Any person granted a license under this Act shall have the obligation to ensure that 
licensed activities are conducted to further public interest and, in particular: 
(1) Foster the maintenance and development of efficient, coordinated, and viable 
operation of their licensed activities; 
(2) Ensure that their water supply and sanitation services are provided in a diligent, 
conscientious and workman like manner, in accordance with applicable laws 
rules and regulations issued by the Commission and the generally accepted 
standards and practices of the water supply and sanitation industry; and 
(3) Comply with drinking water quality requirements and standards that may be 
established by the Commission. 
 
(b) Any person granted a license under this Act shall, to the extent allowed by law and 
specified in the license, has the right to acquire or lease land, lay or repair water or 
sanitation main lines and other relevant facilities in public ways to fulfill the terms and 
conditions under the license. 
 
(c) Subject to any condition or limitation laid down in the license, a licensee may 
discontinue water supply and sanitation services to a customer if such customer 
defaults in the payment of fees due to the licensee for the water supplied or sanitation 
services provided, or for acts of pilferage pursuant to Sections 8, 9, 10, and 11 of 
Republic Act No. 8041, otherwise known as the Water Crisis Act of 1995. 
 
(d) Any license issued under this Act shall contain provisions designed to ensure that 
licensees: 
(1) Publish the Tariff and other charges approved by and the terms and conditions 
imposed by the Commission for the provision of water supply and sanitation 
services. 
(2) Prepare, within three (3) months from the issuance of a license, in consultation with 


 
 
                              
34 
 
its customers, a Customer Service Code specifying the manner and procedure for: 
(a) metering, billing, and collection of the licensee’s approved tariff and other 
charges, (b) disconnection or suspension of service in case of non-payment of 
tariffs and/or other charges, or acts of pilferage, and (c) recommendation and 
recovery of arrears in tariffs and other charges;   
(3) Maintain financial accounts in accordance with the manner and procedure 
specified in the license and as may be required by the Commission; and 
(4) Maintain and upon request by anyone during regular office hours, promptly make 
available for scrutiny and inspection such data, statistics and other information, as 
may be required by the Commission. 
 
SEC. 30. Setting Tariffs, Rates, and Other Charges. – Regulatory units shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure economic 
viability and a fair return on investments. 
 
Tariffs, rates and charges shall be based on and consistent with a rate-setting 
methodology that the Commission shall, after due consultation, define and publish, taking 
into account the following, among others: 
 
(a) Reasonable and prudent capital and recurrent costs of providing the service including 
a reasonable rate of return on capital; 
(b) Efficiency of the service;  
(c) Incentives for enhancement of efficiency;  
(d) Willingness to pay of the customers/consumers;  
(e) Equity considerations; and  
(f) Administrative simplicity. 
 
Tariffs, rates, and charges set by the regulatory units shall be presumed valid and 
reasonable unless a protest or contest is filed with the Commission. 
 
 
SEC. 31. Direct Access. – Fifty-one (51) percent of the registered water consumers 
in a municipality, city or province may petition for direct access to water from any water 
service provider subject to concurrence by the service provider and approval by the 
Commission. The Commission shall promulgate rules and procedures for this mode of 
service. 
 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of 
Systems. – The Commission shall promote innovative schemes such as the consolidation 
or integration of water supply and sanitation services, or providers in the same service area, 
where it shall result in improved efficiency, service expansion and lower costs. 
To this end, the Commission shall establish and issue such rules and guidelines as 
may be necessary to (a) create incentives to encourage efficiency and service expansion; (b) 
establish the standards and targets that service providers are required to meet; and (c) define 
the fines and penalties that shall be imposed for failure to meet such standards and targets. 
 
CHAPTER VI 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
 
SEC. 33. Proceedings Before the Commission. – For the purpose of any investigation, 
inquiry or proceeding, the Commission shall: 


 
 
                              
35 
 
(a) Issue subpoena duces tecum and subpoena ad testificandum; 
(b) Appoint hearing officers to hear and receive evidence on behalf of the Commission;  
(c) Cite any person or party for contempt for refusal to appear, testify, or comply with 
an order of the Commission on any matter that is the subject of investigation, 
inquiry or proceeding before the Commission. 
 
SEC. 34. Orders and Decisions of the Commission. – Any order, resolution, or 
decision of the Commission shall be promulgated promptly, expeditiously, reasonably, and in 
writing, and shall state clearly and distinctly the facts and law on which it is based. 
 
The Commission shall publish and make available for public inspection all decisions 
and final orders in the adjudication of contested cases or applications. 
 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. –   
 
(a) The orders, rulings, and decisions of the Commission are final and executory 
unless appealed to the Court of Appeals within fifteen (15) days from receipt of 
notice of such order, ruling or decision: Provided, That orders, rulings, and 
decisions of the Commission approving tariffs, shall be immediately executory and 
may be suspended only upon appeal and filing of a bond, in an amount to be fixed 
by the Commission, to answer for damages occasioned by the suspension or stay 
of execution of such orders, rulings, and decisions. 
(b) No injunction may be issued by any court or administrative agency to restrain any 
proceeding before, or the implementation or execution of any order, ruling, or 
decision of the Commission, except on the basis of a question of law brought before 
the Supreme Court on certiorari.  
(c) Any act or decision of the Commission shall not be invalidated merely because of 
a defect or irregularity in, or in connection with, the appointment or vacancy in the 
Office of the Chairperson or any other member of the Commission. 
 
CHAPTER VII 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
 
SEC. 36. Interface with Other Sector Regulators. – 
(a) The DENR shall continue to exercise primary jurisdiction over programs aimed at  
protecting the environment and the quality of water sources from waste and 
pollution, and shall promulgate rules, regulations, and standards in this regard. The 
Department of Health (DOH) shall continue to exercise primary jurisdiction over the 
determination and enforcement of standards for quality drinking water and 
sanitation. 
 
(b) The Commission shall coordinate with the: 
(1) DOH to ensure that the standards and targets for quality drinking water and 
sanitation are consistently complied with; 
(2) LGUs for development projects relating to water supply and sanitation; and  
(3) Department of Public Works and Highways for flood control and harnessing and 
impounding of water. 
 
SEC. 37. Transfer of Rights and Obligations. – The Commission shall, by virtue of 
this Act, be subrogated to all the rights, and assume all the obligations, of the Water Utilities 


 
 
                              
36 
 
Division of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of all 
special economic zones, and all other government agencies and units whose powers and 
functions have been transferred to the Commission. 
     The transfer of powers and functions to the Department of the concerned agencies 
as herein provided for, shall be deemed completed within six (6) months after the effectivity 
of this Act. The transfer of powers and functions shall include all applicable funds, personnel, 
records, property and equipment, as may be necessary. The same shall apply to agencies 
which have been attached to the Department by virtue of this Act. 
 
All agencies transferred, subsumed and attached to the Department, shall continue to 
function under their present mandates until the six-month transition period mandated under 
this Act shall have lapsed. The heads of the affected agencies shall continue to serve until 
replaced. 
 
All rights and obligations of the affected agencies are hereby transferred to and 
assumed by the Commission, and shall be acted upon in accordance with the rules and 
regulations of the Commission on Audit and other pertinent laws, rules, and regulations. 
 
SEC. 38. Absorption or Separation from Service of Employees of the Subrogated 
Agencies. – The current employees of the Water Utilities Division of the NWRB, the 
regulatory offices of MWSS and LWUA, the regulatory units of all special economic zones, 
and all other government agencies and units whose powers and functions have been 
transferred to the Commission shall enjoy security of tenure, and shall be absorbed by the 
Department, in accordance with their staffing pattern and the selection process as prescribed 
under Republic Act No. 6656 or the Government Reorganization Law. 
 
Employees opting to be separated from the service as a consequence of the 
consolidation, and reconstitution under the provisions of this Act shall, within one (1) month 
from their separation or phase out from the service, receive separation benefits in accordance 
with existing laws, and those who are qualified to retire shall be allowed to retire and be 
entitled to all benefits under existing retirement laws. 
 
SEC. 39. Water Trust Fund. – There is hereby created a Water Trust Fund in the 
Bureau of Treasury. All non-tax revenues, including raw water pricing, permit fees, 
registration fees, supervision and regulation enforcement fees, filing fees, testing fees, and 
other service income from the use of water resources shall be remitted to the Water Trust 
Fund. The trust fund shall be accounted separately from the government’s general revenues 
and shall be automatically appropriated to the Department.  Proceeds from the trust fund 
shall be utilized for water development, water sanitation and waste water treatment and 
management, and water sustainability programs and projects authorized under this Act:  
Provided, That a maximum of ten percent (10%) of the total income generated from raw water 
extraction shall be given as share of the concerned local government unit or indigenous 
peoples (IP) community who own the specific areas or land where the raw water was sourced. 
 
CHAPTER VIII 
FINAL PROVISIONS. 
 
 
SEC. 40. Applicability of Ease of Doing Business Law. – The prescribed 
processing time provided under Section 9.b of Republic Act No. 11032, otherwise known as 
the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, shall be 


 
 
                              
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applicable to all agencies and LGUs covered under this Act particularly on accessing 
government services. 
 
SEC. 41. Transitory Provisions. – Performance audit of all water-related agencies 
and institutions, including LWUA and water districts, MWSS, MWSS-RO and its 
concessionaires, LGU-run utilities, Tourism Infrastructure and Enterprise Zone Authority, 
Philippine Economic Zone Authority, Bases Conversion and Development Authority, Subic 
Bay Metropolitan Authority, DILG, and NIA, shall be conducted by the Department. 
 
SEC. 42. Appropriations – The amount necessary to cover the initial implementation 
of this Act shall be charged against the currents year’s appropriations of the agencies and 
offices transferred and subsumed by the Department and the Commission in the General 
Appropriations Act. Thereafter, such sums as may be necessary for the continued 
implementation of the Act shall be included in the annual GAA. 
 
SEC. 43. Implementing Rules and Regulations. – Within one hundred eighty (180) 
days from the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in 
consultation with concerned government agencies, the Presidential Legislative Liaison Office 
shall promulgate rules and regulations for the effective implementation of this Act.   
 
SEC. 44. Separability Clause. – If any reason, any portion or provision of this Act 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall 
continue to be in full force and effect. 
 
SEC. 45. Repealing Clause. – (a) The following provisions are hereby repealed: 
 
1)  Section 3 (h) and Section 12 on the provision with respect to fixing of water rates 
and sanitation service fees, Section 3 (n) on the provision with respect to regulation of 
waterworks and deep wells, and Section 3 (p) on the provision with respect to regulation of 
waterworks and sanitation systems in privately owned subdivisions of Republic Act 6234 
entitled, An Act Creating The Metropolitan Waterworks And Sewerage System And 
Dissolving The National Waterworks And Sewerage Authority, And For Other Purposes, as 
amended. 
 
2) Title III on Local Water Utilities Administration Law of Presidential Decree No. 198 
otherwise known as the Provincial Water Utilities Act of 1973, as amended by Letter of 
Instruction No. 700 - Providing Measures To Control And Regulate Increase In Water Rates, 
Letter of Instruction No. 744 - Relative To Reliable Water Supply At Reasonable Rates In The 
Countryside on the, Executive Order No. 124, 30 January 1987 -  Reorganization Act of the 
Ministry of Public Works and Highways, Executive Order No. 123, 30 January 1987 -  
Reorganization Act of Ministry of Social Services and Development. 
 
3)  Republic Act No. 3601 as amended by Presidential Decree No. 552 and 
Presidential Decree No. 1702 pertaining to the creation of the National Irrigation 
Administration; 
 
4) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order No. 
124, dated 30 January 1987, Reorganizing the Department of Public Works and Highways, 
Redefining Its Powers and Functions, and For Other Purposes on renaming and reorganizing 
the National Water Resources Council into the National Water Resources Board. 


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