TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
0lfi£i’ qC liu' .
25 JUL -3 P4 '21
SENATE
SNo. 83
RECEIVED BY.
Introduced by Senator Raffy T. Tulfo
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATE, 
POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
One of Sustainable Goals of the United Nations is to ensure universal access to 
clean water and sanitation. Access to clean water and proper sanitation is the 
cornerstone of national development, public health, and environmental sustainability. 
According to the National Economic and Development Authority (NEDA), 97.6% of 
Filipino families use improved drinking water sources and 84% have access to basic 
sanitation services. However, despite this progress, our country is still behind other 
Southeast Asian countries in terms of access to basic sanitation services. According to 
the 2020 Annual Poverty Indicators Survey (APIS), approximately 8.4% of Filipino 
households still rely on potentially unsafe sources of water, particularly unprotected 
wells, undeveloped springs, rivers, ponds, lakes, rainwater, or water purchased from 
tanker trucks and water peddlers. In 2022, APIS also reported that around 16% of 
households have limited or no access to sanitation facilities.
The water sector in the Philippines is highly fragmented, with more than 30 
government offices and instrumentalities involved in various aspects such as water 
supply, sanitation, irrigation, flood control, and water quality. This has resulted in 
overlapping functions, duplication of efforts, and unclear accountability. Furthermore, 
many water service providers are unregulated, water losses remain high, and long­
term planning is ineffective due to these institutional and governance gaps.
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Moreover, faced with limited funding, local water districts often resort to 
partnerships with the private sector. However, it has been reported that some of these 
Public-Private Partnerships face issues such as declining service satisfaction, revenue 
losses, and concerns over long-term sustainability.
In order to address the complex challenges faced by the water sector, this bill 
proposes the creation of the Department of Water Resources Management, a 
centralized agency responsible for the planning and policy formulation towards the 
attainment of universal access to safe, adequate, affordable, and sustainable water 
supply, and improved sewerage and sanitation services for all Filipinos.
Alongside this, the bill also establishes the Water Regulatory Commission, an 
independent regulatory body tasked with overseeing the performance, compliance, 
and service delivery of all water service providers, whether public or private. The 
Commission is mandated to ensure that water services are delivered efficiently, safely, 
and at fair rates, while safeguarding consumer rights and promoting accountability.
Towards this end, the purpose of this bill is to improve the quality of life of all 
Filipinos. Access to safe water, sanitation, and hygiene is the most basic human need, 
essential to the health and well-being of every Filipino.
It is for this purpose that the approval of this bill is earnestly sought.
FFYT. TULFO


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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENA TE
S. No. 83
2025
Intrcxluced by Senator Raffy T. Tulfo
AN ACT
ESTABLISHING THE NATIONAL FRAMEWORK FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES 
AND THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATE, 
POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
CHAPTER I
GENERAL PROVISIONS
Section 1. Short 777/e.-This Act shall be known as the "Department Of Water 
Resources Act."
Sec. 2. Declaration ofPoHcy.-
(a) The State recognizes the fundamental right of every person to safe, clean, 
accessible, and affordable water, as essential to life, health, dignity, and 
development;
(b) The State affirms that the right of all Filipinos to safe and clean drinking water 
and sanitation is essential to the full enjoyment of life and all human rights. 
Accordingly, the development of a nationwide water supply, sanitation, and 
sewerage system at reasonable rates shall be pursued in an orderly, rational, 
efficient, and responsive manner;
(c) The State emphasizes that water is a scarce and valuable natural resource, 
recognized as both a public good and an essential economic good, supporting 
employment, agriculture, livelihoods, and sustained economic productivity. As


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such, the regulation and management of water must be carefully planned to 
ensure its long-term availability for future generations and to address emerging 
threats posed by increasing demand, population growth, and climate change; 
(d)The State likewise affirms that water is indispensable not only to human 
development but also to the sustainability of natural ecosystems, as it supports 
biodiversity, sustains aquatic life, and is closely linked to climate, soil, land use, 
forests, and other natural resources. Effective water management therefore 
requires coordination among sectors, agencies, institutions, and stakeholders 
to harmonize relevant laws, policies, and initiatives; and 
(e) Finally, the State maintains that all water resources remain under its full 
ownership, control, and supervision. In pursuit of the efficient, affordable, and 
equitable delivery of water supply, sanitation, and septage services to all end- 
users, the State may enter into arrangements with the private sector, civil 
society, and community-based organizations based on the principle of beneficial 
use. These arrangements are deemed public service in nature and shall be 
subject to clear standards of transparency, public oversight, and accountability 
to ensure that all service providers fulfill their obligations in accordance with 
the public interest.
In line with these principles, it is hereby declared the policy of the State to 
ensure that all Filipinos have access to safe, sufficient, and affordable water supply, 
sanitation, and septage services through the rational, evidence-based, and integrated 
management of all water resources. This shall be carried out under a policy and 
regulatory framework that promotes innovation and responsible private sector 
participation, while ensuring environmental sustainability and recognizing that the 
delivery of water to the public is of paramount importance..
Sec. 3. Definition ofTerms.-Jhe following terms are hereby defined as follows: 
(a) Bulk water supplier refers to any entity, natural or juridical, whether public or 
private, supplying or intending to supply large quantities of raw or treated water 
to buyers who will use it for own consumption, such as industrial companies, 
or for 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: (i) disposal services which 
reflect the functions of the natural environment as an absorptive sink for 
residuals; (ii) productive services which reflect the economic functions of 
providing natural resource inputs and space for production and consumption, 
and (iii) consumer or consumption services which provide for physiological as 
well as recreational and related needs of human beings;
(c) Flood Control refers to methods, acts, and protocols to be observed in order to 
prevent and reduce the detrimental and catastrophic effects of flood waters 
which include sediment-laden or turbid flows, and hyper-concentrated flows or 
debris flows;
(d) Flood Risk Management (FRM) refers to such acts of defining and determining 
the appropriate methods, acts and protocols aimed at preventing and reducing 
the risk of incurring loss of both life and property due to flood waters. Flood 
risk management consists of a cycle of prevention, mitigation, adaptation, 
preparedness, and early warning, and, response and recovery. The elements 
of FRM include: integrating land-use planning and coastal zone management 
into water management; adopting a holistic approach so that FRM is part of 
wider risk or multi-hazard management of earthquakes, landslides, and storm 
surges; managing risk and uncertainty as a whole so it is not only hydrological 
uncertainties but also social, economic, and political uncertainties on account 
of human behavior and cultural dimensions of FRM;
(e) Infrastructure and public works refer only to wholly or primarily water-related 
projects and shall not incorporate projects that do not otherwise fall within the 
purview of the objectives, powers, and duties of the Department of Water 
Resources created under this Act;
(f) Integrated Water Resource Management (IWRM) refers to a systematic, 
collaborative and multi-stakeholder process which promotes the coordinated 
development and management of water, land, and related resources within 
geophysical boundaries in order to maximize the resultant economic and social


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welfare in an equitable manner and without compromising the sustainability of 
vital ecosystems;
(g) License refers to the Water Supply or Sanitation Services Operating License 
that the Water Regulatory Commission is authorized to grant and issue to 
Service Providers;
(h) Licensee refers to the Service Provider to whom a License is granted or issued 
by the Water Regulatory Commission;
(i) Missionary Water refers 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;
(j) Nationai Water Resources Management Pian (NWRMP) refers to a policy 
document that incorporates a framework to guide the development and 
management of all water resources in the Philippines, the general strategies 
and work to be pursued to ensure the sustainability of the resource and work 
towards the water security; and provides top-level direction on the utilization 
of existing water resources in line with national development plans, policies, 
and programs in accordance with the IWRM framework. The NWRMP shall also 
include a water infrastructure development program for all waters of the 
country as well as provide general guidance on how this shall be supported 
within an integrated financing framework that can draw on public, private and 
international development funding sources;
(k) Reguiatory Units refer to the regulatory offices of the Water Regulatory 
Commission established under this Act;
(l) 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;
(m) River Basin Organization (RBO) refers to multi-stakeholder organizations which 
plan, coordinate, and monitor activities within a river basin cluster;
{vi) Sanitation refers to the provision of facilities and services for the safe 
management of septage and sewage, from the collection to containment, and 
storage and treatment onsite or conveyance, treatment, and eventual safe end 
use or disposal, and includes the safe management of solid waste and animal 
waste;


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(o) Septage refers to the liquid and solid material pumped from a septic tank, 
cesspool, or other primary treatment source.
(p) Septage Management refers to the provision of proper collection, treatment, 
and disposal of septage;
(q) Service Area refers to the area covered by the water distribution system, 
sewerage, and septage management services/
(r) Service Provider- refers to any entity, natural or juridical, whether private or 
public, providing or intending to provide water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic, 
residential, institutional, industrial, or commercial use;
(s) Sewage refers to water-borne human or animal wastes, excluding oil or oil 
waste, removed from residences, buildings, institutions, and industrial and 
commercial establishments together with such groundwater, surface water and 
storm water as may be present including such waste from vessels, offshore 
structures, other receptacles intended to receive or retain waste or other places 
or the combination thereof;
(t) Sewerage refers to any system or network of sanitary pipelines, ditches, 
channels or conduits including pumping stations, lift stations and force mains, 
service connections including other infrastructure, devices or appliances 
appurtenant thereto, which includes the collection, transport, pumping and 
treatment of sewage to a point of disposal;
(u) Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose sewage;
(v) Tariffs refer to such amounts which may be charged by licensees for their water 
supply, sewerage, or sanitation services based on principles, standards, and 
guidelines established by the Water Regulatory Commission;
(w) Water Demand Management refers to any method whether technical, 
economic, administrative, financial, or social that will accomplish one or more 
of the following:
(i) Reduce the quantity or quality of water required to accomplish a specific 
task;


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(ii) 
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;
(iii) 
Reduce the loss in quantity or quality of water as it flows from source, 
through use, to disposal;
(iv) 
Shift the timing of use from peak to off-peak periods; and
(v) 
Increase the ability of the water system to continue to serve society 
during times when water is in short supply.
(x) Water District refers to government-owned and controlled corporations 
organized under Presidential Decree No. 198, otherwise known as the 
"Provincial Water Utilities Act of 1973", as amended, created primarily to 
acquire, install, operate, maintain and improve water supply and distribution 
systems for domestic, industrial, and municipal uses of residents and to provide, 
maintain, and operate wastewater collection, treatment and disposal facilities 
within the boundaries of the district;
(y) Water poHution 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 quaiity;
(z) Water Resource refers to water under the ground or groundwater; water above 
the ground such as surface water, run-offs, floods, stormwater and urban 
drainage; treated wastewater, water in the atmosphere or rain water; and the 
waters of the sea within the territorial jurisdiction of the Philippines;
(aa) Water resource aiiocation refers to the process of sharing the limited water 
resources between competing users. This consists of determining water 
availability and determining how the water should be shared among competing 
users. For the purpose of this Act, resource allocation shall also mean water 
resource allocation;
(bb) Water Resources Regions refer to the contiguous clusters of river basins created 
under this Act for administrative purposes under the Department of Water 
Resources/
(cc) Water Resources Regional Offices (WRROs) refer to the field offices of the 
Department of Water Resources, as created under this Act, which are to be


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established in accordance with the identified water resources regions in the 
country;
(dd) Water service cooperative refer to cooperatives organized primarily to own, 
operate, and manage water systems for the provision and distribution of 
potable water for the members and their households 
(ee) Water Service Providers (WSPs) refer to the water districts, any Local 
Government Unit (LGU)-run water utility, Barangay Waterworks and Sanitation 
Association, Rural Waterworks and Sanitation Association, water service 
cooperatives, and private sector entities that provide water supply services to 
any given area;
(ff) Water suppiy service refers to any activity comprising developed water sources, 
communal faucet system or stand posts, waterworks system or individual house 
connections, which include bulk suppliers, suppliers to subdivisions, or other 
similar water service providers.
CHAPTER II
DEPARTMENT OF WATER RESOURCES
Sec. 4. Estabiishment of the Department of Water Resources. - There is hereby 
established the Department of Water Resources, hereafter referred to as the 
Department.
Sec. 5. Mandate and Objectives. -The Department shall be the primary policy, 
planning, coordinating, implementing, monitoring, and administrative entity of the 
Executive Branch of the government responsible for the comprehensive, sustainable, 
climate-resilient, and integrated development and management of the water resources 
of the Philippines, and their optimal allocation and use for domestic and municipal 
water supply, sanitation, irrigation, hydropower, industry, navigation, flood 
management, and recreation, and water utilization aspects of 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 sewerage and sanitation 
services for all Filipinos.
Sec. 6. Powers and Functions. - The Department shall exercise the following 
powers and functions:


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I. Policy Making And Planning
(a) 
Ensure that Integrated Water Resources Management (IWRM) is 
adopted as the strategic framework for water management 
policymaking and planning in the country and coordinate the 
implementation, promotion, revision and enhancement of IWRM 
plans;
(b) 
Formulate policies, strategies, and targets in coordination with other 
relevant agencies and stakeholders to meet the goals and objectives 
for water resource sustainability and protection, water allocation and 
management, water supply, sanitation, and sewerage, water quality, 
irrigation, hydropower, flood control, stormwater utilization, and 
urban drainage. Such policies shall, among other guidelines, 
integrate the relevant issues of water, sewerage, sanitation, food 
security, energy, environment, flood control, and climate change;
(c) 
Formulate long-term policies to balance the sustainability and optimal 
multiple use of water resources, define the hydrologic boundaries of 
basins of the existing water supply sources, and develop or update 
existing River Basin Master or Comprehensive Plans which includes 
all aspects of water management and development such as water 
supply, sewerage, and sanitation, irrigation, flood control and storm 
water or urban drainage, drought risk management, water resource 
development systems and other public water works projects, 
including phasing of implementation;
(d) 
Harmonize all relevant national river basin policies and serve as the 
national policy coordination office for LGUs and relevant stakeholders 
in the development and sustainability of river and catchment basins;
(e) 
Identify, based on the river basin master plans, priority projects for 
water infrastructure development per river basin, including water 
supply, sanitation, irrigation, hydropower, flood control and storm 
water or urban drainage, drought risk management, water resource 
development systems and other public works projects;


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(f)
(g)
(h)
(i)
a)
Evaluate and appraise all regional and inter-regional 
infrastructure water development plans and programs as to their 
feasibiiity and consistency with approved strategies and medium and 
long-term plans;
Formulate and develop policies and strategies to promote universal 
access to safe, adequate, affordable, and sustainable water supply, 
and improved sanitation services for all Filipinos;
Develop, in consultation with reievant agencies and stakehoiders, 
the National Water Resources Management Plan (NWRMP) and 
ensure its integration into existing Comprehensive Land Use Plans 
and Provincial Development and Physical Framework Plans, within 
the context of a National Physical Framework Plan, to ensure the 
harmonization of planning of water, land, subsurface, and air 
resources, submit the NWRMP to the National Economic and 
Development Authority Board (NEDA) for approval and eventual 
adoption, and regularly update the NWRMP, every five years or as 
deemed necessary by the Department, in order to ensure its 
relevance to the times;
Prepare, formulate, implement, and update a five (5) year plan of 
action for National and Regional Septage Management, which shall 
contain measures for the construction of wastewater treatment 
facilities and provision, installation, operation, maintenance and, 
where practicable, the integration of sewerage, septage 
management, storm water management and other sanitation 
facilities, in accordance with Republic Act No. 9275, otherwise known 
as the "Philippine Clean Water Act of 2004". Compliance with the 
mandate to implement septage management services and systems 
by any WSP pursuant to Republic Act No. 9275 shall be reckoned 
within five (5) years from the date of promulgation or publication of 
the septage management plan formulated by the Department;
Review and provide oversight over all water-related development 
plans and programs of any agency or local government unit (LGU)


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(k)
(I)
within the context of the NWRMP and overall national plans and 
programs;
Assist and provide the 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;
Strengthen and coordinate with relevant agencies on policy making 
and planning for flood management, integrated with stormwater or 
urban drainage and appropriate retention or retarding basins in order 
to harvest and reuse water, and to plan against, prevent, and 
minimize the detrimental and catastrophic effects of flooding;
(m) Develop and implement, in coordination with other relevant agencies 
and stakeholders, effective codes, standards, benchmarks, and 
reasonable guidelines to ensure the safety of all public and private 
water structures in the country, and assure efficiency and proper 
quality in the construction of water, sanitation, irrigation, 
hydropower, flood control and drainage infrastructure; and ensure 
that the planning and design of water infrastructure considers the 
highest efficiency and most appropriate technology and quality; 
Ensure that gender equality, social inclusion, environmental 
protection, climate resiliency and disaster risk reduction, and 
indigenous knowledge systems and practices are integrated into any 
water resources management planning, policy making, and the 
design and construction of water infrastructure;
Act as the lead agency in ensuring the effective implementation of all 
laws and implementing rules and regulations on water resources; 
Review all water laws and implementing rules and regulations and 
propose amendments thereof to Congress, and advise any agency 
on the implications of government actions, policies, and programs to 
water supply, sewerage, and sanitation;
(n)
(0)
(P)
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(b)
(q) 
Authorize its representatives or any deputized agent to enter any 
property of public dominion or any private land, building or enclave, 
whether inhabited or not, or authorize a representative thereof, for 
the purpose of conducting hydrological surveys and investigations, 
including assessing and evaluating the conditions of water facilities 
installed, and determining compliance with water laws and 
standards; and
(r) 
Issue and promote rules and regulations as may be necessary to 
implement and enforce its powers and functions under this Act.
II. Data Collection and Evidence Gathering
(a) Establish, operate, and maintain a centralized water resources data 
center necessary for the scientific survey and appraisal of surface 
and ground water potentials of the country and determine the annual 
renewable water available per available water resources region; 
Effect inter-sectoral, inter-agency and inter-departmental 
coordination on all aspects of data gathering and data sharing for 
water resources development planning and compel submissions of 
statistics and data on water management with the aim of 
operationalizing the IWRM framework;
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 in coordination with the river 
basin initiatives of relevant government entities;
(d) 
Collect, regularly update, monitor, and analyze water resources data 
including climatology, hydrologic, and other water-related data;
(e) 
Establish, in coordination with agencies that generate water-related 
data, the guidelines, standards, methodologies, and protocols for 
data collection that will be officially recognized by the Department, 
and institute mechanisms for coordination with other agencies as 
regards their submission and certification of submitted water-related 
data to the Department;
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(c)


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III.
(f) 
Conduct continuing hydrological and hydrometeorological surveys 
and studies of the country's renewable water supply, and establish, 
operate, and maintain observation station networks;
(g) 
Conduct and promote special studies and research on water 
economics and other aspects of water resources development and 
management as may be needed to support the policy and plan 
proposals of the Department, such as, but not limited to, impacts of 
climate change, weather modification, flood monitoring and 
modeling, environmental quality, and desalination;
(h) 
Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and 
appraisal of surface and groundwater potentials of the country, and 
determine the annual renewable water available per water resources 
region;
(i) 
Develop and continuously update a computerized decision support 
system that incorporates data management system relating to 
acquisition and database, model base in terms of physical design, 
planning and decision models, and user-friendly interface concerning 
graphical and visualization tools; and
0) 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, food security and environment.
Water Resource Management and Allocation
(a) Formulate, issue, and enforce rules and regulations on the following:
(i) 
Abstraction, diversion, and development of the country's 
water resources, taking into consideration their equitable 
distribution among competing demands and determine the 
standards of beneficial and priority uses of water in times of 
crises and national emergencies;
(ii) 
Equitable and optimal allocation of the country's water 
resources for domestic and municipal water supply, irrigation.
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sanitation, irrigation, hydropower, navigation, fisheries, 
livestock raising, industrial, recreational, and other purposes;
(iii) 
Determination and granting of water rights, including 
adjudication in cases of conflicting uses, amending for this 
purpose. Act No. 2152, otherwise known as "The Irrigation 
Act", and other laws relating to the appropriation and 
utilization of surface and groundwater: Provided, That the 
grant and adjudication of conflicting water rights shall be 
exercised by the Water Resources Adjudication Board;
(iv) 
Such other coherent water protocols as may be necessary, 
including the operating rules of all existing and future water 
infrastructure, legal and technical mechanisms for intra­
sectoral transfers;
(v) 
Guidelines for the determination of costs and fees of all water 
rights, tariffs, permits, and licenses through a science-based 
method which will accurately reflect the current or future 
projected state of the water resource to be allocated: 
Provided, That the actual methodology for setting rates and 
tariffs shall be the exclusive power of the Water Regulatory 
Commission;
(vi) 
Methods and standards for basic data collection and project 
identification, formulation and planning, and appropriate 
sanctions to be imposed for non-compliance;
(vii) 
Guidelines in the grant of areas for missionary water, such as, 
but not limited to, corresponding non-tax incentives and 
possible sources of funding and revenues;
(viii) Treatment and utilization, in coordination with relevant 
agencies, of flood control, rain-water run-off, stormwater, and 
urban drainage;
(b) Exercise original jurisdiction over all disputes relating to 
appropriation, utilization, exploitation, development, control, 
conservation and protection of all water resources, the adjudication
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IV.
(c)
(d)
of which shall be enforced by the Water Resources Adjudication 
Board;
Impose fees or charges, as may be deemed necessary for water 
resources conservation and protection, in accordance with applicable 
rules and regulations on the imposition and increase of fees or 
charges, such as, but not limited to:
(i) 
Raw water price, which shall take into account, among others, 
the scarcity of water; and
(ii) 
Appropriate structures for payment of environmental services; 
Raise public awareness through information, education, and 
communications programs, and build capacities for informed 
participation in water resources management at the national and 
river-basin level.
Administration and Management
(a) Develop guidelines, including rules of partnership between and 
among the Department, field offices of national government 
agencies, LGUs, and other stakeholders, in water resource 
management, facilitate the establishment of multi-stakeholder river 
basin organizations (RBOs) per river basin, and strengthen and 
support existing RBOs and monitor their activities;
Develop materials for capacity building and training on RBO 
development and conduct training and workshops for prospective 
RBOs;
Provide technicai 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;
Conduct a performance audit of all water-related agencies and 
institutions, including but not limited to the water districts, MWSS, 
MWSS-RO and its concessionaires, LGU-run utilities. Tourism 
Infrastructure and Enterprise Zone Authority, Philippine Economic
(b)
(c)
(d)
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(b)
Zone Authority, Bases Conversion and Development Authority, Subic 
Bay Metropolitan Authority, DILG, and NIA;
(e) 
Respond to consumer complaints, and ensure the adequate 
promotion of consumer interests;
(f) 
Deputize any official or agency of the government to assist in the 
performance of any of the powers and functions of the Department; 
and
(g) 
Appoint, hire, and maintain adequate staff and personnel, advisers 
or consultants with suitable qualifications and experience, as 
necessary, in accordance with relevant civil service laws, rules, and 
regulations.
Coordination
(a) Coordinate and rationalize the efforts of relevant government 
agencies and instrumentalities to ensure a whole-of-government 
approach to attaining water security;
Coordinate and integrate water resources development activities of 
the country within the context of national plans and policies for social 
and economic development;
Coordinate with other government agencies, universities, academe, 
and private professional groups in all aspects of data gathering, the 
conduct of special studies and research on all related aspects of 
water resources management and development such as climate 
change, environmental quality, desalination, and the development of 
operating strategies, procedures, and protocols with accompanying 
computerized decision tools for major water facilities;
Coordinate with the concerned and relevant agencies engaged in 
flood control, flood risk management, and drought risk management; 
and
Coordinate proactively with LGUs to ensure the integration of water 
resources development plans into their comprehensive land use 
plans. Comprehensive Development Plans, or Provincial Physical 
Framework and Development Plan.
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VI. Other Functions
(a) 
Create, when necessary, water resource subsidiaries, 
instrumentalities, and entities to engage in water transmission, water 
distribution, waste water treatment and management, and sanitation 
in accordance with existing relevant laws, without prejudice to 
private entities capable of and willing to engage in the 
aforementioned activities through concession agreements, joint 
venture agreements, bulk water agreements, or service agreements 
or contracts. For this purpose, the Department shall ensure 
compliance with existing frameworks, rules, regulations and 
guidelines for private sector participation in water transmission, 
water distribution, waste water treatment and management, storm 
water management, and sanitation;
(b) 
Enter into contracts, joint venture agreements, public-private 
partnerships, and memorandum of agreements or understanding, 
either domestic or foreign relating to investment and financing water- 
related projects, under such terms and conditions as the Department 
may deem proper and reasonable subject to existing laws;
(c) 
Review existing guidelines appropriate for private sector participation 
in the water sector and submit recommendations to the Public- 
Private Partnership (PPP) Center and other concerned agencies to 
promote and enable more PPPs in the sector; and
(d) 
Exercise such other powers and functions necessary or incidental to 
the effective administration and management of the country's water 
resources.
Sec. 7. Offices, Functions, and Personnel to be Completely Absorbed by the 
Department -The following offices are hereby abolished, and their respective powers 
and functions, and the corresponding personnel, funds and appropriations, records, 
equipment, and property shall be absorbed by the Department:
(a) National Water Resources Board, whose mandate, powers, and functions
are provided in Presidential Decree No. 424 creating the National Water
Resources Council, now NWRB, as amended: Provided, That its water
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utility regulation units and functions vested under Commonwealth Act No. 
146, also known as the "Public Service Act", as amended, shall be 
absorbed by the Water Regulatory Commission created under this Act: 
Provided, further, That its resource allocation or regulation units vested 
under Presidential Decree No. 1067 shall be absorbed by the Department 
under the National Water Resources Adjudication Board and the Resource 
Allocation Office, also created under this Act;
(b) Local Water Utilities Administration (LWUA) with its services, departments 
and divisions, whose mandate, powers and functions are provided for in 
Title III of Presidential Decree No. 198, as amended, otherwise known as 
the "Local Water Utilities Administration Law": Provided, That its economic 
regulatory functions over local water districts shall be fully absorbed by 
the Water Regulatory Commission created under this Act: Provided, 
further. That its function to provide technical assistance to local water 
service providers shall be absorbed by the Department under the Local 
Water Service Providers Bureau, also created under this Act;
(c) 
River Basin Control Office (RBCO) of the DENR whose mandate, powers 
and functions are found in Executive Order No. 510, series of 2006, and 
Executive Order No. 816, series of 2009, as amended: Provided, That the 
DENR shall continue to have primary authority and responsibility for 
protecting the environment and managing the country's watersheds and 
reforestation activities: Provided, further. That the targeting of priority 
watershed areas shall be coordinated with the Department;
(d) 
Manila Bay Coordinating Office (MBCO) of the DENR which was 
strengthened by virtue of DENR Administrative Order 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;
(e) Water Supply and Sanitation Unit of the Department of the Interior and 
Local Government; and
(f) 
Water Resource Management Office of the DENR whose mandate, powers, 
and functions are provided in Executive Order No. 22, series of 2023.
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Sec. 8. Powers and Functions to be Transferred to the Department. - The 
powers and functions of the following agencies, bureaus, and units and the 
corresponding personnel, funds and appropriations, records, equipment, and property 
are also hereby transferred to the Department:
(a) The powers and functions of the DPWH with regard to the planning, 
programming, administration, monitoring, and management of the 
National Sewerage and Septage Management Program (NSSMP); and
(b) The following functions of the dissolved Pasig River Rehabilitation 
Commission and transferred to the Manila Bay Task Force per Executive 
Order No. 93, series of 2019:
(i) 
Updating and leading in the overall implementation of the Pasig 
River Rehabilitation Master Plan; and
(ii) 
Ensuring that the easements provided for in the Civil Code and other 
relevant laws are enforced, especially in ail the esteros and 
waterways as well as abating the dumping of untreated wastewater 
and sewage into water systems, including all acts and omissions in 
violation of Presidential Decree No. 984, as amended, and other 
related laws.
Sec. 9. Attached Agencies. - The Department shall exercise administrative 
supervision over the following agencies for purposes of policy and program 
coordination, monitoring, and evaluation:
(a) The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandate, powers, and functions are defined under Republic Act No. 6234, 
as amended entitled, "An Act Creating the Metropolitan Waterworks and 
Sewerage System and Dissolving the National Waterworks and Sewerage 
Authority, and For Other Purposes," shall be transferred from the DENR 
and attached to the Department: Provided, That the MWSS shall continue 
to facilitate the exercise by the concessionaires of their responsibility; 
carry out accounting and notification functions; monitor, report, and 
administer loans; perform related functions in connection with existing 
projects; manage, operate, and dispose its retained assets: Provided, 
further, That its regulatory arm, the MWSS-Regulatory Office, shall be
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(b)
fully absorbed by the Water Regulatory Commission created under this 
Act;
The Laguna Lake Development Authority (LLDA), whose mandate, 
powers and functions are defined under Republic Act No. 4850 otherwise 
known as "An Act Creating the Laguna Lake Development Authority, 
Prescribing Its Powers, Functions and Duties, Providing Funds Therefor, 
and for Other Purposes", as amended, shall be transferred from DENR 
and attached to the Department: Provided, That the power to set rates 
and fees for the use of the lake waters and its tributaries for ali beneficial 
purposes under Section 4-B of Republic Act No. 4850, and the 
corresponding personnel, funds and appropriations, records, equipment, 
and property thereof shall be transferred to the Water Regulatory 
Commission: Provided, further: That the rates fees set by the WRC shail 
no longer be subject to the approval of the President of the Philippines. 
The LLDA shall continue to serve as the lake management and 
development authority similar to a multi-stakeholder river basin 
organization and shall ensure the implementation of the Laguna Lake 
Master Plan which shall be updated by the Department to ensure 
alignment with the NWRMFP;
(c) 
The National Irrigation Administration (NIA), whose mandates, powers 
and functions are defined under Republic Act No. 3601, otherwise known 
as "An Act Granting the National Irrigation Administration", as amended, 
is hereby transferred to the Department; and
(d) 
Any other agency performing water resources management, 
conservation, and protection functions may be transferred to the 
Department as the President deems necessary.
The Secretary shall be the ex-officio Chairperson of the Governing Boards of 
the aforementioned government-owned and controlled corporations to be attached 
under the Department. In case existing laws, rules and regulations provide for a 
specific process in appointing the agency's Chairperson, the Secretary of Water 
Resources shall serve as Co-Chairperson.
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Sec. 10. Organization. - The Department shall be composed of the Office of 
the Secretary, and the various bureaus and services, and regional offices. The Office 
of the Secretary shall house the Office of the Department Secretary, the Office of the 
Undersecretaries, the Office of the Assistant Secretaries, and their immediate support 
staff.
Sec. 11. Secretary of the Department of Water Resources. - The authority and 
responsibility for the exercise of the mandate of the Department and for the discharge 
of its powers and functions shall be vested in the Secretary of the Department, 
hereinafter referred to as the Secretary, who shall be appointed by the President, 
subject to confirmation by the Commission on Appointments. The Secretary shall:
(a) 
Provide executive direction, supervision, and control over the entire 
operations of the Department and exercise supervision over its attached 
agency for program and policy coordination;
(b) Advise the President on the promulgation of executive or administrative 
orders, and other issuances and on the formulation of necessary 
regulatory or legislative proposals on matters pertaining to the 
management of water resources, water supply, sanitation, and septage 
services;
(c) 
Establish the policies and standards for the effective, efficient, and 
economical operation of the Department pursuant to the President's 
guidelines;
(d) 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;
(e) 
Promulgate rules and regulations necessary to carry out the objectives, 
policies and functions of the Department;
(f) 
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;
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(g) 
Exercise control, supervision, and disciplinary powers, in accordance with 
law, over all officers and employees of the Department, including their 
investigation and the designation of a committee or officer to conduct such 
investigation, in accordance with the civil service laws, rules and 
regulations;
(h) Create regional offices and such other service units, bureaus, and divisions 
as may be necessary;
(i) 
Call upon and deputize any official, agent, employee, agency, or 
instrumentality of the national and local government for any assistance 
that it may deem necessary to carry out the purposes of this Chapter, 
subject to existing laws;
0) Delegate authority for the performance of any power or function, as 
defined herein to officials and employees under his direction as deemed 
appropriate, in accordance with existing laws;
(k) Act as the ex-officio Chairperson of the governing board of the agencies 
attached to the Department; and
(l) 
Perform such other duties and responsibilities as may be provided by law.
Sec. 12. The Offices of the Secretary and Undersecretaries. - The Office of the
Secretary shall be composed of the Secretary and immediate staff. The Secretary shall 
be assisted by not more than three (3) Undersecretaries and three (3) Assistant 
Secretaries, who shall all be appointed by the President upon the recommendation of 
the Secretary.
The Secretary is hereby authorized to delineate and assign the respective 
functional areas of responsibility of the Undersecretaries and Assistant Secretaries: 
Provided, That such responsibility shall be with respect to the mandate and objectives 
of the Department: Provided further, That no Undersecretary shall be assigned 
primarily to administrative responsibilities.
Sec. 13. Quaiifications of the Department Secretary, Undersecretaries, and 
Assistant Secretaries. -
(a) No person shall be appointed Secretary, Undersecretary, or Assistant 
Secretary unless he or she is of good moral character, of proven integrity 
and competence in public administration, and has a minimum of seven (7)
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years of experience in the administration of water, sewerage, sanitation, 
irrigation, flood control, or drainage programs, preferably in a public 
agency;
(b) At least one (1) of the Undersecretaries and at least one (1) of the 
Assistant Secretaries shall be career officers;
(c) 
No officer, external auditor, accountant, or legal counsel of any private 
company or enterprises primarily engaged in the water industry shall be 
eligible for appointment as Secretary within two (2) years from retirement, 
resignation, or separation therefrom.
Sec. 14. The Water Resources Adjudication Board. - There is hereby created a 
Water Resources Adjudication Board, hereafter referred to as the Board, under the 
Office of the Secretary. The water resources allocation and regulation functions of the 
National Water Resources Board are hereby transferred to the Board which shall 
supervise the effective appropriation and regulation of the water resources in the 
country in accordance with Presidential Decree No. 1067. The Board shall exercise 
quasi-judicial powers granted to it under this Act.
Sec. 15. Composition. - The Board shall be composed of a Department 
Undersecretary as Chairperson and three (3) representatives from stakeholders as 
members, who shall all be designated by the Secretary.
There is hereby created a Resource Allocation Office, hereinafter referred to as 
the Office, which shall serve as Secretariat to the Board and shall exercise the following 
functions in order to provide technical support to the Board towards the effective 
regulation of the country's water resources.
Sec. 16. Functions of the Board. - The Board shall perform the following 
functions:
(a) 
Promulgate rules and regulations for the exploitation and optimum 
utilization of water resources, in accordance with Presidential Decree No. 
1067 and other existing laws, including the imposition on water 
appropriators of such fees or charges by the Department;
(b) Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Research All;
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(c) 
Review and decide on requests for permits to extract or utilize the 
country's water resources and grant the corresponding water rights, upon 
recommendation of the Office in accordance with Presidential Decree No. 
1067: Provided, That the water rights are exercised within five (5) years 
of granting of such rights: Provided, further. That applicants for water 
permits shall submit proof of land ownership of, or right to use the 
property where the water source is located: Provided, finaiiy. That, if the 
applicant is currently using the water source being applied for domestic or 
municipal purposes upon the effectivity of this Act, such applicant may 
submit such proof of prior use of possession of said property in lieu of 
ownership or right to use;
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Exercise original jurisdiction over decisions in cases involving the 
following:
(i) 
Ali disputes reiating to the appropriation, utilization, exploitation, 
development, control, conservation, and protection of waters;
(ii) 
Violations and disputes on raw water fees; and
(iii) 
Violations and disputes involving water permits, administrative 
allocation of water resources, and transfer of water rights;
(e) Issue subpoena duces tecum and subpoena ad testificandunr,
(f) 
Cite any person or party in contempt for refusal to appear, testify or 
comply with the lawful orders of the Board in relation to any matter subject 
to its investigation;
(g) 
Hear, receive evidence, and decide on cases falling within its jurisdiction;
(h) Impose the appropriate sanctions, including revocation of water permits, 
over violations committed by appropriators after due notice and hearing 
in accordance with Presidential Decree No. 1067 and other existing laws, 
rules and regulations as well as future rules and regulations which the 
Board shall promulgate;
(i) 
Review, update, and revise all fees, charges, and penalties imposed on all 
water appropriators as stated under Chapter VII and VIII of Presidential 
Decree No. 1067, upon recommendation by the Secretariat, and based on 
scientific and evidence-based studies;
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Promulgate its own rules and procedures; and
Exercise such other powers as may be necessary to carry out its duties 
and responsibilities under this law.
17. Resource Allocation Office. -The Office shall perform the following
Advise the Board on all matters relating to resource allocation and 
regulations;
Formulate rules and regulation for the exploitation and optimum utilization 
of surface water, groundwater, and seawater extraction and use, for the 
approval of the Board, and for implementation by the Resource Allocation 
Office, including the processes for the application of water permits, in 
accordance with Presidential Decree No. 1067 and other existing laws; 
Process applications of rights to utilize water resources for the appropriate, 
optimal and sustainable use of surface and ground water, for the approval 
of the Board or its Executive Director, as may be delegated by the Board; 
Upon approval by the Board, issue water permits granted to water 
appropriators;
Monitor performance and conduct audits on water rights grantees 
including, among others, review of compliance by grantees with the terms 
of the permits granted;
Investigate, motuproprioox upon complaint, violations of the water rights 
and Presidential Decree No. 1067;
In the case of violations and conflicts between and among users, file the 
necessary cases for the decision of the Board;
Enforce the decisions promulgated by the Board, and as may be delegated 
by the Board;
Coordinate with other relevant units of the Department regarding the 
generation, updating, managing, and sharing of water data;
Respond to consumer complaints, and ensure the adequate promotion of 
consumer interests; and
Perform such other related functions and activities which are necessary 
for the effective regulation of water-related services.
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The Office shall be headed by an Executive Director and shall be assisted by 
one (1) Deputy Executive Director.
Sec. 18. Orders and Decisions. - Every order or decision rendered by the Board 
shall be in writing and shall state clearly and distinctly the facts and the law on which 
it is based. The Board shall decide each case or application within thirty (30) days 
following its formal submission for resolution. All decisions and final orders in the 
adjudication of contested cases or applications shall be published and made available 
for public inspection.
Sec. 19. Appeais Procedure and Prohibition Against Injunction. -
(a) The orders, rulings, and decisions of the Board shall become final and 
executory after fifteen (15) days from receipt of such order, ruling, or 
decision, unless, prior to the lapse of this period, an appeal was made with 
the Secretary of Water Resources;
(b) All decisions where the penalty imposed is a fine shall be immediately 
executory, except upon the filing of a bond equivalent to the fine imposed 
or as may be fixed by the Board;
(c) 
Except for the Supreme Court, no temporary restraining order, preliminary 
injunction, or preliminary mandatory injunction may be issued by any 
court to restrain any proceeding before, or the implementation or 
execution of any order, ruling, or decision of the Board.
Sec. 20. Bureaus and Services. -The Department shall establish, operate, and 
maintain the Bureaus and Services under it such as, but not limited to:
(a) The Local Water Service Providers Bureau shall provide technical 
assistance and personnel training for the creation, application for the 
socialized credit program, and operation of local water service providers, 
and shall effect system integration, joint investment and operation, district 
annexation and de-annexation, whenever economically warranted, in 
accordance with Section 50 of Presidential Decree No. 198, as amended 
by Section 22 of Presidential Decree No. 768;
(b) The Bureau of Flood Control and Drainage shall plan and design, in 
coordination with the DPWH and other relevant government agencies, 
flood control and drainage structures and facilities in accordance with
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technical standards, guidelines and manuais, and provide technical 
assistance to other agencies, LGUs, and other stakeholders;
(c) The Planning and Policy Service shall formulate strategies and priorities 
for water resources management and provide the Department with the 
capability to undertake water infrastructure deveiopment planning and 
programming;
(d) The Data Management Service shali develop, manage and maintain the 
management information system and knowledge systems of the 
Department, including the processing of water-related data;
(e) The Administrative and Human Resource Service shall provide the 
Department with services relating to human resources deveiopment, 
personnel, records, facilities maintenance, medical and dental, security 
and property and procurement services, in accordance with civil service 
laws, rules, and regulations;
(f) 
The Legal and Legislative Service shail provide the Department with 
services on legal affairs such as, but not limited to, contract preparation 
and review, legal and legislative research, complaints and investigation on 
employees, legal counselling and other matters of law;
(g) The Comptrollership and Financial Management Service shail provide the 
Department with coordinated services relating to financial systems and 
procedures, budget, cash, accounting and all financial housekeeping 
matters;
(h) Internal Audit Service shali regularly conduct a comprehensive audit of 
various Department activities;
(i) 
The Public Affairs Service shail enhance government relations with all 
stakeholders including the media and shall ensure that stakeholders and 
marginalized sectors shall be consulted and can take active part in all 
aspects of water resources development and management activities.
The Bureaus and Services of the Department shall be headed by a Director who 
shall be responsible for efficiently and effectively carrying out the functions of the 
Bureau concerned. Each Director shail be assisted by one (1) Assistant Director.
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(b)
Sec. 21. The Water Resources Regional Offices. - Water Resources Regional 
Offices, herein after referred to as the Regional Offices, shall be organized per water 
resources region and shall be responsible for implementing the mandates, powers, 
and duties of the Department at the field level, except for policymaking which will be 
vested solely in the Department.
The Department shall establish the water resources regions which shall be 
grouped together according to the hydrological boundaries, physiographic features, 
and homogeneity in climate, whether or not they straddle different LGUs.
The Regional Offices shall have, within their respective water resources region, 
the following functions:
(a) Formulate or update and coordinate the river basin master plans for river 
basins within its jurisdictions consistent with the NWRMP;
Advocate and strongly support the creation and functioning of multi­
stakeholder River Basin Organizations (RBOs) and serve as the secretariat 
of the said RBOs;
Undertake and evaluate the planning, design, and work supervision 
functions of the Department for the water infrastructures within the 
region, and recommend the necessary water infrastructures therein; 
Ensure the implementation of laws, policies, programs, rules, and 
regulations regarding the abovementioned infrastructure as well as public 
and private physical structures;
Provide technical assistance related to the water-related functions of 
other agencies within the region, especially the local government; 
Coordinate with other departments, LGUs, agencies, institutions and 
organizations within the region in the planning and implementation of the 
river basin master plans;
Conduct continuing consultations with the local communities, take 
appropriate measures to make the services of the Department responsive 
to the Central Office, and recommend such appropriate actions as may 
be necessary; and
(c)
(d)
(e)
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(h) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.
Each regional office shall be headed by a Regional Director who shall be 
responsible for efficiently and effectively carrying out the duties and responsibilities of 
the office. The Regional Director shall be assisted by one (1) Assistant Regional 
Director. The Regional Directors and Assistant Regional Directors shall be appointed 
by the President.
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate Regional 
Director, unless otherwise determined by the Secretary for reasons of supra-regional 
scope, magnitude, and multi-functional coverage.
Sec. 22. Structure and Staffing Pattern. - Subject to the approval of the 
Department of Budget and Management (DBM), the Secretary shall determine the 
organizational structure and create new divisions or units as may be necessary, and 
appoint officers and employees of the Department in accordance with the civil service 
laws, rules and regulations. The remuneration structure of the position in the staffing 
pattern shall strictly conform to Republic Act No. 11466, otherwise known as the 
"Salary Standardization Law of 2019", as amended.
CHAPTER III
SOCIALIZED CREDIT FOR LOCAL WATER SERVICE PROVIDERS
Sec. 23. Socialized Credit Program. -Socialized credit shall be made available, 
through the Land Bank of the Philippines (LBP), for capital expenditures necessary for 
the maintenance, addition, expansion, or improvement of the services of the water 
service providers, such as but not limited to, capital expenditure for water distribution, 
water conservation, water treatment, water sanitation, water testing, and other 
related activities and ancillary services: Provided, That the loans shall be available to 
water service providers duly registered with the Department: Provided, further. That 
no loan shall be granted for the purpose of funding operational costs or expenses.
Sec. 24. Committee on the Socialized Credit Program. - The Committee on the 
Socialized Credit Program (SCP), hereinafter referred to as the Committee, is hereby 
created. The Committee shall be composed of a representative of LBP as Chairperson
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and a representative of the Department as Vice-Chairperson, both of which should 
hold at least a director position, and four (4) additional members which shall be equally 
shared between the Department and LBP, who shall possess the necessary training 
and experience necessary for the Committee. The Committee shall directly report to 
the Secretary of the Department.
The Committee shall exercise the following functions:
(a) Recommend the lending policies such as, but not limited to, the criteria 
of eligible borrowers, eligible loan purpose, interest rate, fees and 
charges, collateral, guarantee, insurance, and other forms of security, 
and other terms and conditions of the credit facility;
Review the policies, and procedures, and formulate policies for the SCP; 
Monitor the process and performance of the SCP;
Monitor the fund disbursements;
Act on issues or concerns relative to the implementation of SCP;
Conduct SCP performance evaluation; and
Exchange credit information with LBP, LWUA, and other relevant 
agencies.
The SCP shall prioritize the following target beneficiaries:
(a) 
Water Districts and LGU-run utilities in the Missionary Water Area;
(b) 
Water Districts with low credit rating; and
(c) 
Other priority Water Districts or eligible projects of the Water District to 
be identified by the Committee.
Generally, local water service providers with existing Public-Private Partnership 
Projects including joint venture arrangements are not eligible to the SCP.
All recommendations of the Committee shall be jointly approved by the 
Secretary and the Board of the LBP: Provided, That the existing rules, regulations, and 
policies of LBP shall govern all implementation activities of the SCP, such as but not 
limited to, credit and background investigation and loan documentation, evaluation, 
award, negotiation, collection, and restructuring: Provided, further. That the LBP and 
the Department shall exchange relevant information to assess the eligibility of the 
water service providers to be a recipient of a grant or subsidy. Relevant information
(b)
(c)
(d)
(e)
(f)
(g)
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may include, but is not limited to, credit standing, existing loan obligations, and 
compliance with previous or existing loan covenants.
The IRR shall provide other functions of the Committee that are necessary for 
the effective implementation of the SCP, including the creation of sub-committees, 
their composition and delegated functions.
Other Government Financial Institutions, such as, but not limited to. 
Development Bank of the Philippines, may provide a similar SCP for water service 
providers: Provided, That these other GFIs shall submit monitoring reports to the 
Department thru the Committee.
Sec. 25. Support Program for Local Water Service Providers. -The Department, 
the Department of Finance, and the Department of Budget and Management shall 
issue guidelines in the disbursement of any grant, from any sources, and subsidy from 
the National Government: Provided, That the Department shall be the implementing 
agency for this purpose. Provided, further. That all income derived from the lending 
activities shall be recorded as LBP's incomer
CHAPTER IV
THE NATIONAL WATER SECTOR POLICY COUNCIL
Sec. 26. Creation of the National Water Sector Policy Council. -There is hereby 
established a National Water Sector Policy Council (NWSPC), hereinafter referred to 
as the Council, which shall exercise policymaking, coordination, harmonization, 
integration, supervision, monitoring and evaluation functions with regard to water, 
land, subsurface, air, and other natural resources. The Council shall be composed of 
the following members:
(a) Secretary of the Department of Water Resources as Chairperson;
Director-General of the National Economic and Development Authority as 
the Vice-Chairperson;
Secretary of the Department of Health (DOH);
Secretary of the Department of the Interior and Local Government 
(DILG);
Secretary of the Department of Energy (DOE);
Secretary of the Department of Agriculture (DA),
(b)
(c)
(d)
(e)
(f)
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(g)
(h)
(i) 
0)
(k)
(l)
be
(b)
Secretary of the Department of Social Welfare and Development 
(DSWD);
Secretary of the Department of Public Works and Highways (DPWH); 
Secretary of the Department of Budget and Management (DBM); 
Secretary of the Department of Environment and Natural Resources 
(DENR);
Representative from the Office of the President (OP); and 
Chairperson of the National Commission on Indigenous Peoples (NCIP) 
as members.
The Staff of the Department shall serve as Secretariat to the Council.
Sec. 27. Powers and Functions. -The powers and functions of the Council shall 
as follows:
(a) Ensure harmonization of all policies involving water, land, subsurface, air 
and other resources which are connected to the water sector;
Ensure a multi-stakeholder participation in the development, updating, 
and sharing of information system as policy, planning and decision­
making tools; and
Recommend the integration of harmonized policies and priority programs 
in the National Water Resources Management Plan and the National and 
Regional Septage Management Plan.
CHAPTER V
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DWR
Sec. 28. Interface And Institutional Arrangements With Other Agencies. - 
(a) The Department of Environment and Natural Resources (DENR) shall 
continue to have primary authority and responsibility for protecting the 
environment and managing the country's watersheds. The Pollution 
Adjudication Board shall remain to have jurisdiction with respect to 
adjudication of pollution cases based on exceedance of the DENR Effluent 
Standards and other acts defined as prohibited under Section 27 of R.A. 
No. 9275: Provided, That the Department shall coordinate with the DENR
(c)
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regarding the establishment of protocols for management of all water- 
related data being collected by the DENR;
(b) The Department of Health (DOH) shall continue to have primary authority 
and responsibility for setting and enforcing drinking water quality 
standards: Provided, That the Department and the Water Regulatory 
Commission shall coordinate with the DOH in this aspect, and shall ensure 
consistency of standards and targets, as well as the compliance of 
licensees with mandated standards;
(c) The Department of Energy (DOE) and the National Power Corporation 
(NPC) shall continue to have primary authority and responsibility for 
setting up and running hydropower plants: Provided, That all hydropower 
plant development plans shall be consistent with the NWRMP;
(d) The Department shall coordinate with the Department of Agriculture (DA) 
to promote agricultural development that reduces sources of long-term 
pollution for surface water and groundwater, and agricultural and 
industrial economic development that employs water efficiency, water 
recycling or reuse and the appropriate treatment of wastewater: Provided, 
That the Department shall coordinate with the DA and its Bureau of Soils 
and Water Management (BSWM) regarding the establishment of protocols 
for management of all water-related data being collected by the DA, as 
well as the outputs of research and studies by BSWM which may serve as 
input to policy formulation by the Department;
(e) The Department shall coordinate with the Department of Public Works and 
Highways (DPWH) in setting the policies and preparing the master plans 
for bulk water transmission, pipe networks, and related water delivery 
infrastructures as well as flood control and drainage management, and 
other related projects under the DPWH: Provided, That the DPWH shall 
continue to have primary responsibility in the construction and 
implementation of water delivery infrastructures and flood control 
projects: Provided, further. That flood management plans are aligned with 
the NWRMP and flood waters be considered and harnessed as potential 
water source: Provided, finaiiy, That the Department shall coordinate with
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(i)
the DPWH regarding the establishment of protocols for management of all 
water-related data being collected by the DPWH and its Bureaus;
(f) 
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;
(g) The Department shall coordinate with Philippine Atmospheric, 
Geophysical, and Astronomical Services Administration (PAGASA), Climate 
Change Commission (CCC), and National Mapping and Resource 
Information Authority (NAMRIA) on scientific studies, integrated surveys, 
mapping, charting and decision support systems;
(h) The Department shall coordinate with the Department of Tourism (DOT) 
on recreational use of water resources;
The Department shall coordinate with the Tourism Infrastructure and 
Enterprise Zone Authority (TIEZA), Philippine Reclamation Authority 
(PRA), and economic zone authorities on water resources development 
and water requirements within tourist zones, reclamation areas and 
economic zones, respectively;
The Department shall coordinate with the Bangsamoro Autonomous 
Region in Muslim Mindanao (BARMM), specifically its Economic and 
Development Council, Disaster Risk Reduction and Management Council, 
and Ministry of Environment, Natural Resources and Energy, regarding the 
preparation of master plans of river basins that overlap with the inland 
waters within the BARM M's jurisdiction, and ensure the alignment of these 
plans with the NWRMP, Bangsamoro Development Plan, and other related 
regional plans of BARMM;
(k) The Department shall coordinate with the Department of Human 
Settlements and Urban Development in planning, monitoring and 
enforcing integrated land use and water resources management in the 
Comprehensive Land Use Development Plans and Zoning Ordinances of 
the LGUs to ensure, among others, the protection of water sources and
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(I)
that water availability is factored in proposed land use development plans 
and projects; and
The Department shall coordinate with relevant government agencies, 
including LCDs, with respect to development projects and to ensure cross­
cutting collaboration between and among all water subsectors and 
facilitate inter-agency subsector coordination, strategic development, 
planning, monitoring and provision of technical, institutional and financial 
capacity building support to their different stakeholders at the water 
subsector level.
CHAPTER VI
WATER REGULATORY COMMISSION
Sec. 29. Establishment. - There is hereby created and established an 
independent, quasi-judicial regulatory body to be known as the Water Regulatory 
Commission, hereinafter referred to as the Commission. The Commission shall have a 
Board of Commissioners, and shall be vested with powers and functions, as conferred 
and set forth hereunder.
Sec. 30. The Central and Regulatory Units. - The Regulatory Units of the 
Commission shall be composed of the Regional Regulatory Units and the Central 
Regulatory Unit.
The economic regulatory units and functions of the MWSS, NWRB, and LWUA 
are hereby transferred to the Commission, and shall collectively comprise its Central 
Regulatory Unit for Water Supply, Sanitation and Sewerage Services that: (a) provide 
services to more than one province; and (b) are owned, operated, or maintained by 
Metro Manila concessionaires.
The Regional Regulatory Units shall be established by the Commission in 
accordance with the rules, regulations, guidelines, and standards that the Commission 
shall issue, and as provided in this Act.
Sec. 31. Powers and Functions of the Commission. - The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether 
private or public, providing or intending to provide water supply, including suppliers 
to subdivisions, bulk water suppliers, and other providers for sewerage, and septage
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(b)
(c)
treatment and disposal services for domestic, residential, institutional, industrial or 
commercial use.
The Commission shall exercise the following powers and functions:
(a) Issue and promulgate rules, regulations and guidelines as may be 
necessary to implement and enforce its powers and functions under this 
Act;
Issue licenses authorizing the operation of water supply, sanitation, and 
sewerage services in any specified area or areas within the Philippines; 
Issue rules and regulations on terms and conditions prescribing minimum 
and mandatory terms for concession agreements, joint venture 
agreements, management agreements, service contracts or other 
contractual arrangements that may be entered into by government 
entities including local water utilities, LGUs, private sector entities, or 
other water service providers for the provision of water, sanitation, or 
sewerage services, such as, but not limited to the (i) the term, scope and 
total cost of the activity, which may be subdivided into phases; (ii) 
committed contributions and corresponding performance security 
requirements in accordance with any agreed phased implementation of 
the activity; and (iii) cost recovery schemes and percentage of the parties' 
share in the profits and losses, among others;
Require the review or approval of contracts or agreements that may 
impact on the tariff and rates of service provision entered into by service 
providers upon petition or motu proprio'^hen public interest so dictates; 
Set, regulate, review, and monitor the tariffs, rates, charges, and fees for 
the use of water resources in the Philippines, including irrigation service 
fees, bulk water rates, and septage rates, which may be delegated to the 
Regulatory Units;
Amend, modify, suspend, or revoke any license issued by them, after due 
notice and hearing, on any of the following grounds:
(i) When the facts and circumstances on the strength of which the 
license was issued have been materially misrepresented or have 
materially changed;
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(ii) 
Where the licensee has failed to meet or comply with terms, 
conditions, and performance targets, including but not limited to 
service expansion, that may have targets, including but not 
limited to service expansions, that may have been set in the 
license;
(iii) 
Where the licensee is found to be manifestly inefficient in the 
operation of or provision of water supply, sanitation, and 
sewerage services in its area; or
(iv) 
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;
(g) 
Promulgate and enforce just and reasonable technical standards, 
classifications and measurements of service;
(h) 
Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities;
(i) 
Conduct benchmarking and monitor the performance of licensees or 
utilities under their jurisdiction, and publish reports detailing the results 
thereof;
(j) 
Coordinate with the Philippine Competition Commission (PCC) by 
providing technical support in the PCC's exercise of authority and 
jurisdiction to establish rules and enforce regulations to monitor, 
investigate, provide remedies for, and deliberate on cases involving any 
market power abuse or anti-competitive or discriminatory act or behavior 
by or against any participant in the water supply, sanitation, and 
sewerage sector. Without prejudice to the actions that the Philippine 
Competition Commission, pursuant to Republic Act No. 10667, may 
undertake on its own, the Water Regulatory Commission may be directed 
by the Philippine Competition Commission, upon finding that a market 
participant has engaged in, or fell victim to such act or behavior, to stop 
or redress the same within the functions and powers granted to the Water 
Regulatory Commission under this Act;
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(k) 
Adopt and require that books, records, and accounts be kept and 
maintained in accordance with the prescribed uniform accounting 
system;
(l) 
Require the submission of plans, reports on finances and operations, 
performance targets, and accomplishments verified under oaths by the 
owner or president and secretary of the licensee;
(m) 
Determine and require the monitoring and submission of such data, 
statistics, and other information from any or all licensees as may be 
necessary for the effective and efficient exercise of its duties, functions, 
powers and responsibilities: Provided, That such data, statistics, and 
other information shall also be submitted to the Department for 
integration in the centralized database on water resources;
(n) 
Fix and determine proper and adequate rates of depreciation of 
properties and equipment used in water supply, sanitation, and sewerage 
services;
(o) 
Impose and collect annual levies and reasonable fees and surcharges as 
may be necessary for achieving the purposes, powers, and functions of 
the Commission: Provided, That the rate of annual levies and fees shall 
be determined strictly on a cost recovery basis for the reasonable and 
actual cost of regulation in accordance with applicable rules and 
regulations on the imposition and increase of charges;
(p) 
Investigate, motu proprio or upon complaint in writing, any matter 
concerning the operation of the service and violations of this Act;
(q) 
Respond to consumer complaints and ensure the adequate promotion of 
consumer interests and investigate motu proprio m\o\bV^o^s]
(r) 
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;
(s) 
Impose penalties and fines, which may include, but is not limited to, 
rebates, refunds, and credits to affected consumers, against any licensee 
or against its owners, directors, officers, agents or representatives for
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(t)
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(X)
any violation of this Act or of the license, order, rule regulation or 
requirement issued by the Commission;
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;
Appoint an interim or temporary management committee upon appeal 
and after due hearing, to ensure continuity of service in cases a licensee 
fails to meet conditions of the license;
Advise, apprise, and coordinate with the Department, the National Water 
Sector Policy Council, and other relevant agencies of the national or local 
government on any matter relating to water supply, sanitation, and 
sewerage services;
(w) Deputize any official or agency of the government to assist in the 
performance of any of the powers and functions of the Commission; 
Appoint, hire, and maintain the Central and Regional Regulators, 
adequate staff and personnel, advisers, and consultants, with suitable 
qualifications and experience, as necessary, subject to existing civil 
service laws, rules, and regulations;
Exercise original and exclusive jurisdiction over all cases contesting rates, 
fees, fines and penalties imposed by the Regulatory Units in the exercise 
of their powers, functions and responsibilities, as provided under this Act, 
and over all cases involving disputes between and among participants or 
stakeholders in the water supply, sanitation, and sewerage services; and 
Such other incidental powers and functions as may be necessary to attain 
the objectives of this Act.
Sec. 32. Composition of the Water Reguiatory Commission. - 
(a) The Commission shall be a collegial body composed of five (5) full-time 
members consisting of a Chairperson and four (4) members, who shall 
all be appointed by the President of the Philippines. All members of the 
Commission must be citizens and residents of the Philippines, at least 
thirty five (35) years of age, and of good moral character, recognized
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(b)
(c)
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 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, at least one (1) shall be a certified public 
accountant with at least ten (10) years of experience in active practice; 
and at least one (1) shall be a licensed engineer with at least ten (10) 
years of experience in the water supply, sewerage, or septage 
management sector;
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 his successor shall 
have been appointed and qualified: Provided, furthermore. That any 
appointment to fill a vacancy in the Commission arising from death, 
removal, retirement or resignation shall be made only for the unexpired 
term: Provided, finally. That in no case shall any member serve for more 
than seven (7) years in the Commission.
The Commission shall meet as often as may be necessary on such day or 
days as the Chairperson may fix. The presence of at least three (3) 
members of the Commission shall constitute a quorum, which shall be 
necessary for the transaction of any business. The affirmative vote of 
majority of the members of the Commission where a quorum is present 
shall be necessary for the adoption of any order, resolution, decisions, or 
other act of the Commission in the exercise of its quasi-judicial functions: 
Provided, That in promulgating rules, regulations, guidelines and in the
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exercise of 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 of the Commission and its members, staff and 
personnel, agents, and representatives. Within three (3) months from the 
creation of the Commission and the appointment of all members of the 
Commission, the Chairperson shall submit for the approval by the 
President of the Philippines the new organizational structure and 
personnel positions necessary to carry out the powers and functions of 
the Commission, subject to the review and approval of the DBM. The 
personnel positions of the Commission shall be filled by regular 
appointments in accordance with civil service laws, rules, and regulations.
(e) 
Members of the Commission shall enjoy security of tenure and shall not 
be suspended or removed from office except for just cause as specified 
by law.
(f) 
The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or 
common law, shall be prohibited from holding any interest whatsoever, 
either as investor, stockholder, officer or director, in any company or 
entity engaged in provision of water supply and distribution, septage 
management and sewerage services and must, therefore, divest through 
sale or legal disposition of any and all interests in the water sector upon 
assumption to office.
Sec. 33. Secretariat of the Commission. - The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
such as, but not limited to the following:
(a) 
Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions;
(b) 
Coordinate with, monitor, and assess the activities of the Regulatory Units 
to ensure proper implementation of the rules, regulations, and guidelines 
promulgated by the Commission;
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(c) 
Maintain a database on the water supply, sanitation, and sewerage 
subsector; and
(d) 
Coordinate with other relevant agencies of the national or local 
government on any matter relating to water supply, sanitation, and 
sewerage.
Sec. 34. The Commission Secretariat. - The Executive Director shall head the 
Commission Secretariat, keep and maintain the official records, and report of the 
proceedings of the Commission, and administer oaths in all matters falling within the 
jurisdiction of the Commission.
The Commission shall appoint, fix the compensation, and determine the status, 
qualifications, and duties of the Executive Director and the Secretariat staff subject to 
civil service laws, rules, and regulations. The Executive Director shall have at least ten 
(10) years of experience 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. The members of the 
technical staff, except those performing purely clerical functions, shall possess at least 
a Bachelor's Degree in any of the following lines of specialization: law, public 
administration, economics, finance, engineering, accounting, or management.
The Executive Director shall be responsible for the effective implementation of 
the policies, plans, programs, rules, regulations, and directives of the Commission; 
coordinate and supervise the activities of the different operating units under the 
Commission; and perform such functions as may be assigned by the Chairperson and 
other members of the Commission.
Sec. 35. Enhancement of Technical Competence. - The Commission shall 
establish rigorous training programs for its staff for the purpose of enhancing the 
technical competence of the Commission in the following areas: evaluation of technical 
performance and monitoring compliance with service and performance standards, 
performance-based rate-setting reform, environmental standards, and such other 
areas as will enable the Commission to adequately perform its duties and functions.
Sec. 36. Compensation and Other Emoluments. - The compensation of the 
members of the Commission and its staff shall be exempted from the coverage of 
Republic Act. No. 11466, otherwise known as the "Salary Standardization Law of
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2019", as amended. For this purpose, the schedule of compensation of the 
Commission shall be submitted for approval of the President of the Philippines. The 
compensation schedule of the Commission shall be implemented within six (6) months 
from the effectivity of this Act and maybe upgraded by the President of the Philippines 
as the need arises: Provided, That in no case shall the compensation of the 
Commission and its staff be upgraded more than once a year: Provided, further, That 
pertinent civil service laws, rules, and regulations shall be applicable to the 
Commission.
The Chairperson and members of the Commission shall initially be entitled to 
the same salaries, allowances and benefits as those of the Presiding Justice and 
Associate Justices of the Court of Appeals, respectively.
CHAPTER VII
REGISTRATION AND LICENSING
Sec. 37. Registration and Licensing of AH Water Supply, Sanitation, and 
Sewerage Services. - All water supply, sanitation, and sewerage service providers, 
including bulk water suppliers and those providing services to subdivisions and other 
service providers, shall register with the Commission and, subject to its rules, 
guidelines, procedures and other issuances of the Commission, obtain a license to 
operate from the appropriate regulatory units: Provided, That the Commission shall 
act on the application for the issuance or the conversion of such licenses and renewals 
thereof within the maximum period of one (1) year as provided under this Act or by 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient 
Government Service Delivery Act of 2018".
The Commission shall also ensure that the grant and revocation of licenses are 
carried out fairly, transparently, and without discrimination. Issuances of the 
Commission shall specify, among others, the gualifications, requirements and 
procedure for the grant and revocation of licenses including the standards and 
performance targets that shall continuously be complied with to keep the licenses 
valid.
The Commission shall specify the requirements and procedure for existing 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience
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and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by 
LWUA, to convert their existing certificates into licenses to operate.
All local water utilities, existing water service providers, or holders of CPCN or 
CoC shall be duly prioritized in the issuance of the licenses to operate over the areas 
where they currently operate or as may be covered by their franchises. The submission 
of the CPC, CPCN, provisional authority, or the CoC shall be sufficient basis for the 
issuance of the new and converted or updated licenses to operate required and 
contemplated under this Act. To ensure continuity of service, the Commission shall 
complete the issuance of such converted or updated licenses not later than six (6) 
months from the effectivity of the implementing rules and regulations issued by the 
Commission pursuant to this Act.
Unless otherwise provided in this Act or by the Commission, no public water 
supply, sanitation, and sewerage service provider shall commence or conduct the 
business of providing water supply, sewerage, and sanitation services without first 
obtaining a license.
Concession agreements and other contracts for water supply provision and 
water sanitation and treatment services currently existing shall remain valid and 
enforceable unless otherwise terminated, after due notice and hearing for reasons 
provided in the existing terms and conditions under the concession or service 
agreement or contract, or invalidated by the Commission, after due notice and 
hearing, where national security, national emergency, or public interest so dictates.
Sec. 38. Conditions of License. -The Commission may impose such conditions 
in the issued license, as it may deem necessary, such as, but not limited to:
(a) 
Tariffs, rates, and charges that may be imposed 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, such as but 
not limited to: (i) water pressure; (ii) minimum flow rates; (iii) 
connections; (iv) sewerage discharge, billing, and metering requirements, 
and (v) sanctions for failure to comply with the standards set;
(e) 
Expansion targets and service level improvements over time;
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(ii)
(f) 
Restrictions or conditions for transferability of the business or controlling 
interest in the business;
(g) 
Reportorial requirements and obligations of the grantee; and
(h) 
Submission to annual performance audit by the Commission or its duly 
authorized representative.
Sec. 39. Rights and Duties of Licensees. -
(a) 
Any person granted a license under this Act or with existing rights under 
concession agreements and related agreements shall have the obligation 
to ensure that licensed activities are conducted to further public interest 
and, in particular:
(i) Foster the maintenance and development of efficient, 
coordinated, and viable operation of their licensed activities; 
Ensure that their water supply, sanitation, and sewerage services 
are provided in a diligent, conscientious and workman like 
manner, in accordance with applicable laws rules and regulations 
issued by the Commission and the generally accepted standards 
and practices in the water supply, sanitation, and sewerage 
industry;
Comply with drinking water quality requirements and standards 
that may be established by the Commission, Department, and 
DOH; and
Ensure that provision of services shall not be discontinued without 
notice to, and approval by, the Commission.
(b) 
Any person granted a license under this Act shall, to the extent allowed 
by law and specified in the license, has the right to acquire or lease land, 
lay or repair water or sanitation mains, and other relevant facilities in 
public ways to fulfill the terms and conditions under the license;
(c) 
Subject to any condition or limitation laid down in the license, a licensee 
may discontinue water supply, sanitation, and sewerage services to a 
customer if such customer defaults in the payment of fees due to the 
licensee for the water supplied or sanitation services provided, or for acts
(ill)
(iv)
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(ii)
(Hi)
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:
(i) Publish the Tariff and other charges approved by and the terms 
and conditions imposed by the Commission for the provision of 
water supply, sanitation, and sewerage services;
Prepare, within three (3) months from the issuance of a license, 
in consultation with its customers, a customer service code 
specifying the manner and procedure for:
(a) Metering, billing, and collection of the licensee's approved 
tariff and other charges;
(b) Disconnection or suspension of service in case of non­
payment of tariffs and other charges, or acts of pilferage; and
(c) Recommendation and recovery of arrears in tariffs and other 
charges.
Maintain financial accounts in accordance with the manner and 
procedure specified in the license and as may be required by the 
Commission; and
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. 40. Setting Tariffs, Rates and Other Charges. - The Commission shall 
establish tariffs, rates and other charges which are fair and reasonable, and ensure 
environmental sustainability, economic viability, and a fair return on investments.
Service providers may apply for the setting of tariffs, rates, and charges based 
on and consistent with a scientific and evidence-based rate-setting methodology that 
the Commission shall, after due consultation, define and publish, taking into account 
the following, among others:
(a) Reasonable and prudent capital and recurrent costs of providing the 
service including a reasonable rate of return on capital;
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(b) 
Efficiency of the service;
(c) 
Incentives for enhancement of efficiency;
(d) 
Capacity to pay of consumers;
(e) 
Equity considerations;
(f) 
Environmental sustainability;
(g) 
Administrative simplicity;
(h) 
In cases involving valid and subsisting concession agreements prior to 
the enactment of this Act, the methodology provided under the 
concession agreement;
(i) 
To the fullest extent practicable, the terms and conditions of the tariffs, 
rates or other price-setting mechanisms set forth in any concession 
agreement, joint venture agreement or other similar agreement for the 
provision of water or sanitation services by an existing service provider.
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid 
and reasonable unless invalidated by the Commission, after due notice and hearing, 
acting on a protest or contest duly filed with the Commission to ensure continuity of 
service, application for setting of tariffs, rates and other charges shall be decided 
within a non-extendible period of ninety (90) days from the date of filing thereof, and 
the failure of the Commission to act on any such applications shall result in a 
provisional approval: Provided, That in no case shall proceedings on any applications 
for the setting of tariffs, rates and other charges exceed to a total period of one 
hundred twenty (120) days reckoned from the date of filing of the application.
Sec. 41. Direct Access. - Fifty-one percent (51%) of the registered water 
consumers in a service area, municipality, city or province may petition for direct 
access to water from any water service provider subject to concurrence by and 
reasonable compensation to the service provider and approval by the Commission. If 
the petition for direct access from any water service provider is approved by the 
Commission, the new water service provider shall reimburse the existing service 
provider for, as applicable, either the book value or the market value as determined 
by an independent appraiser accredited by the Commission, whichever is higher, of 
the water source, water supply, or water distribution or transmission facilities, 
pipelines and other equipment which shall be transferred to or utilized by the new
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water service provider. The Commission shall promulgate the implementing rules and 
procedures for this mode of service, which shall include, among others, financial and 
technical capability of the new service provider.
Sec. 42. Innovative Schemes to Improve Efficiency and Management of 
Systems. - The Commission shall promote innovative schemes such as the 
consolidation or integration of water supply, sanitation, and sewerage services, or 
providers in the same service area, where it shall result in improved efficiency, service 
expansion and lower costs.
To this end, the Commission shall establish and issue such rules and guidelines 
as may be necessary to (a) create performance-based and time-bound incentives to 
encourage efficiency and service expansion; (b) establish the standards and targets 
that service providers are required to meet; and (c) define the fines and penalties that 
shall be imposed for failure to meet such standards and targets.
CHAPTER VIII
PROCEEDINGS BEFORE THE COMMISSION
Sec. 43. Proceedings Before the Commission. - For the purpose of any 
investigation, inquiry, or proceeding, the Commission shall:
(a) 
Issue subpoena duces tecum and subpoena ad testiflcandunr,
(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. 44. 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. 45. Appeals Procedure. - 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
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immediately executory and may be suspended only upon appeal and filing of a bond, 
in an amount to be fixed by the Commission, to answer for damages occasioned by 
the suspension or stay of execution of such orders, rulings, and decisions.
Sec. 46. Prohibition Against Injunctions. - Except for the Supreme Court, no 
temporary restraining order, preliminary injunction, or preliminary mandatory 
injunction may be issued by any court to restrain any proceeding before, or the 
implementation or execution of any order, ruling, or decision of the Commission.
CHAPTER IX
TRANSITORY PROVISIONS
Sec. 47. Transition Period.- The Department shall, by virtue of this Act be 
subrogated to all the rights and assume all the functions of the government agencies 
and units whose powers and functions have been subsumed, absorbed, transferred or 
attached to the Department. The Commission shall also, by virtue of this Act, be 
subrogated to all the rights, and assume all the functions, of the Water Utilities Division 
of the NWRB, the regulatory offices of MWSS and LWUA, and all other government 
agencies and units whose powers and functions have been transferred to the 
Commission in accordance with the civil service laws, rules, and regulations.
The transfer of powers and functions to the Department or the Commission of 
the concerned agencies as herein provided for, shall be deemed completed within six 
(6) months after the effectivity of this Act.
All agencies transferred, subsumed and attached to the Department or the 
Commission, shall continue to function under their present mandates until the six- 
month transition period mandated under this Act shall have lapsed. The transfer of 
powers and functions shall include all applicable funds, personnel, records, property 
and equipment, as may be necessary. The heads of the affected agencies shall 
continue to serve until replaced.
All rights and functions of the affected agencies are hereby transferred to and 
assumed by the Department or the Commission, and shall be acted upon in 
accordance with the rules and regulations of the Commission on Audit and other 
pertinent laws, rules, and regulations.
Sec. 48. Absorption or Separation from Service of Empioyees of the Subrogated
32 Agencies. - The current employees of all government agencies and units whose
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powers and functions have been transferred to, absorbed or subsumed by the 
Department or Commission shall enjoy security of tenure, in accordance with their 
staffing pattern and the selection process as prescribed under 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, subject to 
existing rules and regulations of the Commission on Audit.
CHAPTER X 
FINAL PROVISIONS
Sec. 49. Applicability of Ease of Doing Business Law. - The prescribed 
processing time provided under Section 9(b) of Republic Act No. 11032 shall be 
applicable to all agencies and LCDs covered under this Act particularly on accessing 
government services.
Sec. 50. Appropriations. - The amount necessary for the initial implementation 
of this Act shall be charged against the current year's appropriations of the agencies, 
entities, divisions, sections or units subsumed or transferred to the Department. 
Thereafter, such amount shall be included in the annual General Appropriations Act.
Sec. 51. Implementing Rules and Regulations. - Upon the effectivity of this Act, 
the Department and the Commission, as may be applicable, as well as NEDA, DBM, 
DENR, CSC, and the National Commission on Indigenous Peoples in consultation with 
concerned government agencies shall promulgate the implementing rules and 
regulations (IRR) of the Department and the Commission necessary for the effective 
implementation of this Act within one hundred eighty (180) days after its effectivity.
Sec. 52. 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. 53. Repealing Clause. -
(a) The following provisions are hereby repealed:
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(b)
(ii)
(i) Section 3 (h) and Section 12 on the fixing of water rates and 
sanitation service fees, Section 3 (n) on regulation of waterworks 
and deep wells, and Section 3 (p) on the regulation of waterworks 
and sanitation systems in privately owned subdivisions of 
Republic Act No. 6234;
Section 62 on regulation and Section 63 on rate review of 
Presidential Decree No. 198 otherwise known as the "Provincial 
Water Utilities Act of 1973", as amended by Letter of Instruction 
No. 700 - "Providing Measures To Control And Regulate Increase 
In Water Rates", Letter of Instruction No. 744 - "Relative To 
Reliable Water Supply At Reasonable Rates In The Countryside", 
Executive Order No. 124-A, series of 1987 - "Reorganization Act 
of the Ministry of Public Works and Highways", and Executive 
Order No. 123, 30 January 1987 - "Reorganization Act of Ministry 
of Social Services and Development"; and 
Executive Order No. 22, series of 2023, creating the Water 
Resources Management Office of the DENR; and 
Section 154, Article V, Chapter I, Title One, Book II of Republic 
Act No. 7160 otherwise known as the "Local Government Code of 
1991", as amended, and its implementing rules and regulations 
on the power of the LGUs to fix the rates of water utilities owned, 
operated and maintained by them within their jurisdiction.
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. 54. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
(ill)
(iv)
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