f
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
^niUi
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SENATE
S. No. ^050
25 MB -6 F4 :39
lECEIVEflY;
Introduced by Senator Jinggoy Ejercito Estrada
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
Water is one of the most important resources in the world. The Philippines, as 
an archipelagic country, is gifted with this resource in abundance. However, 
mismanagement and unsustainable consumption of water continues to be a major 
predicament of the country.
In 2024, the Department of Environment and Natural Resources estimated 
around 40 million Filipinos do not have access to a formal water supply. This leads to 
various problems particularly on health and sanitation. An analysis conducted by the 
Philippine Statistics Authority revealed that between the years 2010-2019, fourteen 
(14) Filipinos die everyday because of water-borne diseases caused by contaminated 
water such as cholera, typhoid, and leptospirosis.
The government needs to immediately address these concerns by providing 
comprehensive and long-term solutions. Congruent with the international efforts 
under the auspices of the WHO, the concerned government agencies should intensify


its efforts to develop and implement water safety planning, to strengthen systems and 
capacity for drinking water quality surveillance and monitoring, and to improve water, 
sanitation, and hygiene.
Such endeavor is consistent with Sustainable Development Goal 6 which seeks 
to provide clean water and sanitation for all. Among the targets under this SDG are 
the achievement of universal and equitable access to safe and affordable drinking 
water for all; improvement of water quality by reducing pollution, eliminating dumping 
and minimizing release of hazardous chemicals and materials, halving the proportion 
of untreated wastewater and substantially increasing recycling and safe reuse globally; 
and implementation of integrated water resources management at all levels, including 
through transboundary cooperation as appropriate.
The "National Water Act' seeks to rationalize the management of water 
resources, sewerage, and sanitation through the creation of the Department of Water 
Resources. The Department shall be the primary agency responsible for the 
comprehensive and integrated identification and mapping of all water resources, 
planning, policy formulation, and management of the ownership, appropriation, 
utilization, exploitation, development, and protection of water resources in the 
Philippines.
The bill also establishes the Water Regulatory Commission which shall be placed 
under the administrative supervision of the Department of Water Resources. To 
ensure coherent and coordinated management of water resources, the economic 
regulatory units and functions of the Metropolitan Waterworks and Sewerage System 
(MWSS), National Water Resources Board (NWRB), and Local Water Utilities 
Administration (LWUA) will be transferred to the Commission.


In view of the foregoing, the swift passage of this measure is highly 
recommended.
NGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 1080
of tiK 
«.
25 AUG-6 P4:3f
KCEtVEIIY:
Introduced by Senator Jinggoy Ejercito Estrada
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:
1 
ARTICLE I
2 
GENERAL PROVISIONS
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Section 1. Short Title. - This Act shall be known as the "National Water
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Resources Management Act.
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Sec. 2. Declaration of Policy. -
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(a) The State recognizes that water is fundamental to individual life, health, and
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dignity, and that every person has a right to access safe and clean water
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for personal and domestic use;
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(b)The State affirms that the right of all Filipinos to safe and clean drinking
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water and sanitation is essential to the full enjoyment of life and all human
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rights and hence, the attainment of a nationwide water supply, sanitation,
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and sewerage services at reasonable rates must be pursued in an orderly,
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rational, efficient, and dynamic manner;
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(c) The State emphasizes that water is a public good subject to diverse use in
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economic, agricultural, and industrial activities, and is thus a scarce resource


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


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coordinated development and management of water, land, and related 
resources within geophysical boundaries in order to maximize the 
resultant economic and social welfare in an equitable manner and 
without compromising the sustainability of vital ecosystems;
(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) National Water Resources Management Plan (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) Regulatory 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;


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(n) 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;
(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 retevs 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) Sev\/age 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;


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(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;
(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 vefers 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 poiiution refers to any alteration of the physical, chemical, 
biological, or radiological properties of a body of water resulting in the 
impairment of its purity or quality;
(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 
rainwater; 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


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shared among competing users. For the purpose of this Act, resource
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allocation shall also mean water resource allocation;
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(bb) 
Water Resources Regions refer to the contiguous clusters of river
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basins created under this Act for administrative purposes under the
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Department of Water Resources;
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(cc) 
Water Resources Regional Offices (WRROs) refer to the field
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offices of the Department of Water Resources, as created under this Act,
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which are to be established in accordance with the identified water
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resources regions in the country;
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(dd) 
Water service cooperative refers to cooperatives organized
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primarily to own, operate, and manage water systems for the provision
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and distribution of potable water for the members and their households;
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(ee) 
Water Service Providers (WSPs) refer to the water districts, any
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Local Government Unit (LGU)-run water utility, Barangay Waterworks
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and Sanitation Association, Rural Waterworks and Sanitation
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Association, water service cooperatives, and private sector entities that
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provide water supply services to any given area;
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(ff) Water supply service refers to any activity comprising developed water
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sources, communal faucet system or stand posts, waterworks system or
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individual house connections, which include bulk suppliers, suppliers to
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subdivisions, or other similar water service providers.
22 
CHAPTER II
23 
DEPARTMENT OF WATER RESOURCES
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Sec. 4. Establishment of the Department of Water Resources. - There is hereby
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established the Department of Water Resources, hereafter referred to as the
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Department.
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Sec. 5. Mandate and Objectives. - The Department shall be the primary policy,
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planning, coordinating, implementing, monitoring, and administrative entity of the
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Executive Branch of the government responsible for the comprehensive, sustainable,
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climate-resilient, and integrated development and management of the water resources
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of the Philippines, and their optimal allocation and use for domestic and municipal


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water supply, sanitation, irrigation, hydropower, industry, navigation, flood
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management, and recreation, and water utilization aspects of fisheries or aquaculture.
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The Department shall also be the primary agency responsible for the planning
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and policy formulation towards the attainment of universal access to safe, adequate,
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affordable, and sustainable water supply, and improved sewerage and sanitation
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services for all Filipinos.
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Sec. 6. Powers and Functions. - The Department shall exercise the following
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powers and functions:
9 
I. Policy Making and Planning
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(a) Ensure that Integrated Water Resources Management (IWRM) is
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adopted as the strategic framework for water management
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policymaking and planning in the country and coordinate the
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implementation, promotion, revision and enhancement of IWRM
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plans;
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(b) Formulate policies, strategies, and targets in coordination with
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other relevant agencies and stakeholders to meet the goals and
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objectives for water resource sustainability and protection, water
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allocation and management, water supply, sanitation, and
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sewerage, water quality, irrigation, hydropower, flood control,
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stormwater utilization, and urban drainage. Such policies shall,
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among other guidelines, integrate the relevant issues of water,
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sewerage, sanitation, food security, energy, environment, flood
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control, and climate change;
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(c) Formulate long-term policies to balance the sustainability and
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optimal multiple use of water resources, define the hydrologic
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boundaries of basins of the existing water supply sources, and
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develop or update existing River Basin Master or Comprehensive
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Plans which includes all aspects of water management and
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development such as water supply, sewerage, and sanitation,
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irrigation, flood control and storm water or urban drainage,
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drought risk management, water resource development systems


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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;
(f) Evaluate and appraise all regional and inter-regional 
infrastructure water development plans and programs as to their 
feasibility and consistency with approved strategies and medium 
and long-term plans;
(g) 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;
(h) Develop, in consultation with relevant agencies and stakeholders, 
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;
(i) 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


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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;
(j) Review and provide oversight over all water-related development 
plans and programs of any agency or local government unit (LGU) 
within the context of the NWRMP and overall national plans and 
programs;
(k) 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;
(l) 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
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II.
infrastructure considers the highest efficiency and most 
appropriate technology and quality;
(n) 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;
(o) Act as the lead agency in ensuring the effective implementation 
of all laws and implementing rules and regulations on water 
resources;
(p) 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;
(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.
Data Collection and Evidence Gathering
(a) Establish, operate, and maintain a centralized water resources 
data center necessary for the scientific survey and appraisal of 
surface and ground water potentials of the country and determine 
the annual renewable water available per available water 
resources region;
(b) Effect inter-sectoral, inter-agency and inter-departmental 
coordination on all aspects of data gathering and data sharing for 
water resources development planning and compel submissions
11


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of statistics and data on water management with the aim of 
operationalizing the IWRM framework;
(c) Undertake river basin survey, inventory, and appraisal of water 
and related resources, and develop comprehensive basin-wide 
plans of storage, retardation, and control to maximize 
conservation and multipurpose use of water in the basin 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;
(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;
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(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
(j) 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.
III. 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, 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
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water infrastructure, legal and technical mechanisms for 
intersectoral 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 of which shall be enforced by the Water 
Resources Adjudication Board;
(c) 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;
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(d) 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.
IV. 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;
(b) Develop materials for capacity building and training on RBO 
development and conduct training and workshops for prospective 
RBOs;
(c) Provide technical assistance to water users including farmers, 
communities, and LGUs and other water service providers (WSP) 
whether directly or in coordination with other agencies on all 
aspects of integrated water resources management;
(d) 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 
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;
(g) Appoint, hire, and maintain adequate staff and personnel, 
advisers or consultants with suitable qualifications and
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experience, as necessary, in accordance with relevant civil service 
laws, rules, and regulations.
V. Coordination
(a) Coordinate and rationalize the efforts of relevant government 
agencies and instrumentalities to ensure a whole-of-government 
approach to attaining water security;
(b) Coordinate and integrate water resources development activities 
of the country within the context of national plans and policies for 
social and economic development;
(c) 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;
(d) Coordinate with the concerned and relevant agencies engaged in 
flood control, flood risk management, and drought risk 
management; and
(e) 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 2 Framework and Development Plan.
VI. Other Functions
(a) Create, when necessary, water resource subsidiaries, 
instrumentalities, and entities to engage in water transmission, 
water distribution, wastewater 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
16


1 
agreements or contracts. For this purpose, the Department shall
2 
ensure compliance with existing frameworks, rules, regulations
3 
and guidelines for private sector participation in water
4 
transmission, water distribution, wastewater treatment and
5 
management, stormwater management, and sanitation;
6 
(b) Enter into contracts, joint venture agreements, public-private
7 
partnerships, and memorandum of agreements or understanding
8 
either domestic or foreign relating to investment and financing
9 
water related projects, under such terms and conditions as the
10 
Department may deem proper and reasonable subject to existing
11 
laws;
12 
(c) Review existing guidelines appropriate for private sector
13 
participation in the water sector and submit recommendations to
14 
the Public Private Partnership (PPP) Center and other concerned
15 
agencies to promote and enable more PPPs in the sector; and
16 
(d) Exercise such other powers and functions necessary or incidental
17 
to the effective administration and management of the country's
18 
water resources.
19 
Sec. 7. Offices, Functions, and Personnel to be Completely Absorbed by the
20 
Department - The following offices are hereby abolished, and their respective powers
21 
and functions, and the corresponding personnel, funds and appropriations, records,
22 
equipment, and property shall be absorbed by the Department:
23 
(a) National Water Resources Board, whose mandate, powers, and functions
24 
are provided in Presidential Decree No. 424 creating the National Water
25 
Resources Council, now NWRB, as amended: Provided, That its water utility
26 
regulation units and functions vested under Commonwealth Act No. 146,
27 
also known as the "Public Service Act", as amended, shall be absorbed by
28 
the Water Regulatory Commission created under this Act: Provided, further,
29 
That its resource allocation or regulation units vested under Presidential
30 
Decree No. 1067 shall be absorbed by the Department under the National
31 
Water Resources Adjudication Board and the Resource Allocation Office,
32 
also created under this Act;
17


1 
(b) Local Water Utilities Administration (LWUA) with its services, departments
2 
and divisions, whose mandate, powers and functions are provided for in
3 
Title III of Presidential Decree No. 198, as amended, otherwise known as
4 
the "Local Water Utilities Administration Law": Provided, That its economic
5 
regulatory functions over local water districts shall be fully absorbed by the
6 
Water Regulatory Commission created under this Act: Provided, further,
7 
That its function to provide technical assistance to local water service
8 
providers shall be absorbed by the Department under the Local Water
9 
Service Providers Bureau, also created under this Act;
10 
(c) River Basin Control Office (RBCO) of the DENR whose mandate, powers and
11 
functions are found in Executive Order No. 510, series of 2006, and
12 
Executive Order No. 816, series of 2009, as amended: Provided, That the
13 
DENR shall continue to have primary authority and responsibility for
14 
protecting the environment and managing the country's watersheds and
15 
reforestation activities: Provided, further. That the targeting of priority
16 
watershed areas shall be coordinated with the Department;
17 
(d) Manila Bay Coordinating Office (MBCO) of the DENR which was
18 
strengthened by virtue of DENR Administrative Order 2011-01, to coordinate
19 
the efforts of the fourteen (14) national agencies covered by the Mandamus
20 
Order of the Supreme Court to rehabilitate Maniia Bay;
21 
(e) Water Supply and Sanitation Unit of the Department of the Interior and
22 
Local Government; and
23 
(f) Water Resource Management Office of the DENR whose mandate, powers,
24 
and functions are provided in Executive Order No. 22, series of 2023.
25 
Sec. 8. Powers and Functions to be Transferred to the Department. - The
26 
powers and functions of the following agencies, bureaus, and units and the
27 
corresponding personnel, funds and appropriations, records, equipment, and property
28 
are also hereby transferred to the Department:
29 
(a) The powers and functions of the DPWH with regard to the planning,
30 
programming, administration, monitoring, and management of the National
31 
Sewerage and Septage Management Program (NSSMP); and
18


1 
(b)The following functions of the dissolved Pasig River Rehabilitation
2 
Commission and transferred to the Manila Bay Task Force per Executive
3 
Order No. 93, series of 2019:
4 
(i) Updating and leading in the overall implementation of the Pasig River
5 
Rehabilitation Master Plan; and
6 
(ii) Ensuring that the easements provided for in the Civil Code and other
7 
relevant laws are enforced, especially 
in all the esteros and
8 
waterways as well as abating the dumping of untreated wastewater
9 
and sewage into water systems, including all acts and omissions in
10 
violation of Presidential Decree No. 984, as amended, and other
11 
related laws.
12 
Sec. 9. Attached Agencies. - The Department shall exercise administrative
13 
supervision over the following agencies for purposes of policy and program
14 
coordination, monitoring, and evaluation:
15 
(a) The Metropolitan Waterworks and Sewerage System (MWSS), whose
16 
mandate, powers, and functions are defined under Republic Act No. 6234,
17 
as amended entitled, "An Act Creating the Metropolitan Waterworks and
18 
Sewerage System and Dissolving the National Waterworks and Sewerage
19 
Authority, and For Other Purposes", shall be transferred from the DENR and
20 
attached to the Department: Provided, That the MWSS shall continue to
21 
facilitate the exercise by the concessionaires of their responsibility; carry
22 
out accounting and notification functions; monitor, report, and administer
23 
loans; perform related functions in connection with existing projects;
24 
manage, operate, and dispose its retained assets: Provided, further. That
25 
its regulatory arm, the MWSS-Regulatory Office, shall be fully absorbed by
26 
the Water Regulatory Commission created under this Act;
27 
(b)The Laguna Lake Development Authority (LLDA), whose mandate, powers
28 
and functions are defined under Republic Act No. 4850 otherwise known as
29 
"An Act Creating the Laguna Lake Development Authority, Prescribing Its
30 
Powers, Functions and Duties, Providing Funds Therefor, and for Other
31 
Purposes", as amended, shall be transferred from DENR and attached to
32 
the Department: Provided, That the power to set rates and fees for the use
19


1 
of the lake waters and its tributaries for all beneficial purposes under Section
2 
4-B of Republic Act No. 4850, and the corresponding personnel, funds and
3 
appropriations, records, equipment, and property thereof shall be
4 
transferred to the Water Regulatory Commission: Provided, further, That
5 
the rates fees set by the WRC shail no longer be subject to the approval of
6 
the President of the Philippines. The LLDA shall continue to serve as the
7 
lake management and development authority similar to a multi-stakeholder
8 
river basin organization and shali ensure the impiementation of the Laguna
9 
Lake Master Pian which shall be updated by the Department to ensure
10 
alignment with the NWRMFP;
11 
(c) The National Irrigation Administration (NIA), whose mandates, powers and
12 
functions are defined under Republic Act No. 3601, otherwise known as "An
13 
Act Granting the Nationai Irrigation Administration", as amended, is hereby
14 
transferred to the Department; and
15 
(d)Any other agency performing water resources management, conservation,
16 
and protection functions may be transferred to the Department as the
17 
President deems necessary.
18 
The Secretary shall be the ex-officio Chairperson of the Governing Boards of
19 
the aforementioned government-owned and controlied corporations to be attached
20 
under the Department. In case existing laws, rules and regulations provide for a
21 
specific process in appointing the agency's Chairperson, the Secretary of Water
22 
Resources shall serve as Co-Chairperson.
23 
Sec. 10. Organization. - The Department shall be composed of the Office of
24 
the Secretary, and the various bureaus and services, and regional offices. The Office
25 
of the Secretary shall house the Office of the Department Secretary, the Office of the
26 
Undersecretaries, the Office of the Assistant Secretaries, and their immediate support
27 
staff.
28 
(a) Provide executive direction, supervision, and control over the entire
29 
operations of the Department and exercise supervision over its attached
30 
agency for program and policy coordination;
31 
(b) Advise the President on the promulgation of executive or administrative
32 
orders, and other issuances and on the formulation of necessary regulatory
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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, 
poiicies 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;
(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;
(j) 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.
21


1 
Sec. 12. The Offices of the Secretary and Undersecretaries. - The Office of the
2 
Secretary shall be composed of the Secretary and immediate staff. The Secretary shall
3 
be assisted by not more than three (3) Undersecretaries and three (3) Assistant
4 
Secretaries, who shall all be appointed by the President upon the recommendation of
5 
the Secretary.
6 
The Secretary is hereby authorized to delineate and assign the respective
7 
functional areas of responsibility of the Undersecretaries and Assistant Secretaries:
8 
Provided, That such responsibility shall be with respect to the mandate and objectives
9 
of the Department: Provided, further. That no Under Secretary shail be assigned
10 
primarily to administrative responsibilities.
11 
Sec. 13. Quaiifications of the Department Secretary, Undersecretaries, and
12 
Assistant Secretaries. -
13 
(a) No person shali be appointed Secretary, Undersecretary, or Assistant
14 
Secretary unless he or she is of good moral character, of proven integrity
15 
and competence in public administration, and has a minimum of seven (7)
16 
years of experience in the administration of water, sewerage, sanitation,
17 
irrigation, flood control, or drainage programs, preferably in a public agency;
18 
(b) At least one (1) of the Undersecretaries and at least one (1) of the Assistant
19 
Secretaries shall be career officers;
20 
(c) No officer, external auditor, accountant, or legal counsel of any private
21 
company or enterprises primarily engaged in the water industry shall be
22 
eligible for appointment as Secretary within two (2) years from retirement,
23 
resignation, or separation therefrom.
24 
Sec. 14. The Water Resources Adjudication Board. - There is hereby created
25 
a Water Resources Adjudication Board, hereafter referred to as the Board, under the
26 
Office of the Secretary. The water resources allocation and regulation functions of the
27 
National Water Resources Board are hereby transferred to the Board which shall
28 
supervise the effective appropriation and regulation of the water resources in the
29 
country in accordance with Presidential Decree No. 1067. The Board shall exercise
30 
quasi-judicial powers granted to it under this Act.
22


1 
Sec. 15. Composition. - The Board shall be composed of a Department
2 
Undersecretary as Chairperson and three (3) representatives from stakeholders as
3 
members, who shall all be designated by the Secretary.
4 
There is hereby created a Resource Allocation Office, hereinafter referred to as
5 
the Office, which shall serve as Secretariat to the Board and shall exercise the following
6 
functions in order to provide technical support to the Board towards the effective
7 
regulation of the country's water resources.
8 
Sec. 16. Functions of the Board. - The Board shall perform the following
9 
functions:
10 
(a) Promulgate rules and regulations for the exploitation and optimum
11 
utilization of water resources, in accordance with Presidential Decree No.
12 
1067 and other existing laws, including the imposition on water
13 
appropriators of such fees or charges by the Department;
14 
(b) Approve the guidelines and processes pertaining to water regulation, as
15 
recommended by the Research All;
16 
(c) Review and decide on requests for permits to extract or utilize the country's
17 
water resources and grant the corresponding water rights, upon
18 
recommendation of the Office in accordance with Presidential Decree No.
19 
1067.- Provided, That the water rights are exercised within five (5) years of
20 
granting of such rights: Provided, further, That applicants for water permits
21 
shall submit proof of land ownership of, or right to use the property where
22 
the water source is located: Provided, finaiiy. That, if the applicant is
23 
currently using the water source being applied for domestic or municipal
24 
purposes upon the effectivity of this Act, such applicant may submit such
25 
proof of prior use of possession of said property in lieu of ownership or right
26 
to use;
27 
(d) Exercise original jurisdiction over decisions in cases involving the following:
28 
(i) All disputes relating to the appropriation, utilization, exploitation,
29 
development, control, conservation, and protection of waters;
30 
(ii) Violations and disputes on raw water fees; and
31 
(iii) Violations and disputes involving water permits, administrative
32 
allocation of water resources, and transfer of water rights;
23


1 
(e) Issue subpoena duces tecum and subpoena ad testificandum;
2 
(f) Cite any person or party in contempt for refusal to appear, testify or comply
3 
with the lawful orders of the Board in relation to any matter subject to its
4 
investigation;
5 
(g) Hear, receive evidence, and decide on cases falling within its jurisdiction;
6 
(h) Impose the appropriate sanctions, including revocation of water permits,
7 
over violations committed by appropriators after due notice and hearing in
8 
accordance with Presidential Decree No. 1067 and other existing laws, rules
9 
and regulations as well as future rules and regulations which the Board shall
10 
promulgate;
11 
(i) Review, update, and revise all fees, charges, and penalties imposed on all
12 
water appropriators as stated under Chapter VII and VIII of Presidential
13 
Decree No. 1067, upon recommendation by the Secretariat, and based on
14 
scientific and evidence-based studies;
15 
(j) Promulgate its own rules and procedures; and
16 
(k) Exercise such other powers as may be necessary not carry out its duties
17 
and responsibilities under this law.
18 
Sec. 17. Resource Allocation Office. -The Office shall perform the following
19 
functions:
20 
(a) Advice the Board on all matters relating to resource allocation and
21 
regulations;
22 
(b) Formulate rules and regulation for the exploitation and optimum utilization
23 
of surface water, groundwater, and seawater extraction and use, for the
24 
approval of the Board, and for implementation by the Resource Allocation
25 
Office, including the processes for the application of water permits, in
26 
accordance with Presidential Decree No. 1067 and other existing laws;
27 
(c) Process applications of rights to utilize water resources for the appropriate,
28 
optimal and sustainable use of surface and ground water, for the approval
29 
of the Board or its Executive Director, as may be delegated by the Board;
30 
(d)Upon approval by the Board, issue water permits granted to water
31 
appropriators;
24


1 
(e) Monitor performance and conduct audits on water rights grantees including,
2 
among others, review of compliance by grantees with the terms of the
3 
permits granted;
4 
(f) Investigate, motu proprio or upon complaint, violations of the water rights
5 
and Presidential Decree No. 1067;
6 
(g) In the case of violations and conflicts between and among users, file the
7 
necessary cases for the decision of the Board;
8 
(h) Enforce the decisions promulgated by the Board, and as may be delegated
9 
by the Board;
10 
(i) Coordinate with other relevant units of the Department regarding the
11 
generation, updating, managing, and sharing of water data;
12 
(j) Respond to consumer complaints, and ensure the adequate promotion of
13 
consumer interests; and
14 
(k) Perform such other related functions and activities which are necessary for
15 
the effective regulation of water-related services.
16 
Sec. 18. Orders and Decisions. - Every order or decision rendered by the Board
17 
shall be in writing and shall state clearly and distinctly the facts and the law on which
18 
it is based. The Board shall decide each case or application within thirty (30) days
19 
following its formal submission for resolution. All decisions and final orders in the
20 
adjudication of contested cases or applications shall be published and made available
21 
for public inspection.
22 
Sec. 19. Appeais Procedure and Prohibition Against Injunction. -
23 
(a) The orders, rulings, and decisions of the Board shall become final and
24 
executory after fifteen (15) days from receipt of such order, ruling, or
25 
decision, unless, prior to the lapse of this period, an appeal was made with
26 
the Secretary of Water Resources;
27 
(b)AII decisions where the penalty imposed is a fine shall be immediately
28 
executory, except upon the filing of a bond equivalent to the fine imposed
29 
or as may be fixed by the Board;
30 
(c) Except for the Supreme Court, no temporary restraining order, preliminary
31 
injunction, or preliminary mandatory injunction may be issued by any court
25


1 
to restrain any proceeding before, or the implementation or execution of
2 
any order, ruling, or decision of the Board.
3 
Sec. 20. Bureaus and Services. - The Department shall establish, operate, and
4 
maintain the Bureaus and Services under it such as, but not limited to:
5 
(a) The Local Water Service Providers Bureau shall provide technical assistance
6 
and personnel training for the creation, application for the socialized credit
7 
program, and operation of local water service providers, and shall effect
8 
system integration, joint investment and operation, district annexation and
9 
de-annexation, whenever economically warranted, in accordance with
10 
Section 50 of Presidential Decree No. 198, as amended by Section 22 of
11 
Presidential Decree No. 768;
12 
(b)The Bureau of Flood Control and Drainage shall plan and design, in
13 
coordination with the DPWH and other relevant government agencies, flood
14 
control and drainage structures and facilities in accordance with technical
15 
standards, guidelines and manuals, and provide technical assistance to
16 
other agencies, LGUs, and other stakeholders;
17 
(c) The Planning and Policy Service shall formulate strategies and priorities for
18 
water resources management and provide the Department with the
19 
capability to undertake water infrastructure development planning and
20 
programming;
21 
(d)The Data Management Service shall develop, manage and maintain the
22 
management information system and knowledge systems of the
23 
Department, including the processing of water-related data;
24 
(e)The Administrative and Human Resource Service shall provide the
25 
Department with services relating to human resources development,
26 
personnel, records, facilities maintenance, medical and dental, security and
27 
property and procurement services, in accordance with civii service laws,
28 
rules, and regulations;
29 
(f) The Legal and Legislative Service shall provide the Department with services
30 
on legal affairs such as, but not limited to, contract preparation and review,
31 
legal and legislative research, complaints and investigation on employees,
32 
legal counselling and other matters of law;
26


1 
(g)The Comptrollership and Financial Management Service shall provide the
2 
Department with coordinated services relating to financial systems and
3 
procedures, budget, cash, accounting and all financial housekeeping
4 
matters;
5 
(h) Internal Audit Service shall regularly conduct a comprehensive audit of
6 
various Department activities;
7 
(i) The Public Affairs Service shall enhance government relations with all
8 
stakeholders including the media and shall ensure that stakeholders and
9 
marginalized sectors shall be consulted and can take active part in all
10 
aspects of water resources development and management activities.
11 
The Bureaus and Services of the Department shall be headed by a Director who
12 
shall be responsible for efficiently and effectively carrying out the functions of the
13 
Bureau concerned. Each Director shall be assisted by one (1) Assistant Director.
14 
Sec. 21. The Water Resources Regional Offices. - Water Resources Regional
15 
Offices, herein after referred to as the Regional Offices, shall be organized per water
16 
resources region and shall be responsible for implementing the mandates, powers,
17 
and duties of the Department at the field level, except for policymaking which will be
18 
vested solely in the Department.
19 
The Department shall establish the water resources regions which shall be
20 
grouped together according to the hydrological boundaries, physiographic features,
21 
and homogeneity in climate, whether or not they straddle different LCDs.
22 
The Regional Offices shall have, within their respective water resources region,
23 
the following functions:
24 
(a) Formulate or update and coordinate the river basin master plans for river
25 
basins within its jurisdictions consistent with the NWRMP;
26 
(b) Advocate and strongly support the creation and functioning of multi-
27 
stakeholder River Basin Organizations (RBOs) and serve as the secretariat
28 
of the said RBOs;
29 
(c) Undertake and evaluate the planning, design, and work supervision
30 
functions of the Department for the water infrastructures within the region,
31 
and recommend the necessary water infrastructures therein;
27


1 
(d) Ensure the implementation of laws, policies, programs, rules, and
2 
regulations regarding the above mentioned infrastructure as well as public
3 
and private physical structures;
4 
(e) Provide technical assistance related to the water-related functions of other
5 
agencies within the region, especially the local government;
6 
(f) Coordinate with other departments, LCDs, agencies, institutions and
7 
organizations within the region in the planning and implementation of the
8 
river basin master plans;
9 
(g) Conduct continuing consultations with the local communities, take
10 
appropriate measures to make the services of the Department responsive
11 
to the Central Office, and recommend such appropriate actions as may be
12 
necessary; and
13 
(h) Perform such functions and activities, as may be mandated by law, which
14 
are necessary for the effective performance of the abovementioned
15 
objectives.
16 
Each regional office shall be headed by a Regional Director who shall be
17 
responsible for efficiently and effectively carrying out the duties and responsibilities of
18 
the office. The Regional Director shall be assisted by one (1) Assistant Regional
19 
Director. The Regional Directors and Assistant Regional Directors shall be appointed
20 
by the President.
21 
The Department shall retain existing Project Management Offices as may be
22 
required, which shall be under the supervision and control of the appropriate Regional
23 
Director, unless otherwise determined by the Secretary for reasons of supra-regional
24 
scope, magnitude, and multi-functional coverage.
25 
Sec. 22. Structure and Staffing Pattern. - Subject to the approval of the
26 
Department of Budget and Management (DBM), the Secretary shall determine the
27 
organizational structure and create new divisions or units as may be necessary, and
28 
appoint officers and employees of the Department in accordance with the civil service
29 
laws, rules and regulations. The remuneration structure of the position in the staffing
30 
pattern shall strictly conform to Republic Act No. 11466, otherwise known as the
31 
"Salary Standardization Law of 2019", as amended.
32
28


1 
CHAPTER III
2 
SOCIALIZED CREDIT FOR LOCAL WATER SERVICE PROVIDERS
3 
Sec. 23. Socialized Credit Program. - Socialized credit shall be made available,
4 
through the Land Bank of the Philippines (LBP), for capital expenditures necessary for
5 
the maintenance, addition, expansion, or improvement of the services of the water
6 
service providers, such as but not limited to, capital expenditure for water distribution,
7 
water conservation, water treatment, water sanitation, water testing, and other
8 
related activities and ancillary services: Provided, That the loans shall be available to
9 
water service providers duly registered with the Department: Provided, further. That
10 
no loan shall be granted for the purpose of funding operational costs or expenses.
11 
Sec. 24. Committee on the Socialized Credit Program. - The Committee on the
12 
Socialized Credit Program (SCP), hereinafter referred to as the Committee, is hereby
13 
created. The Committee shall be composed of a representative of LBP as Chairperson
14 
and a representative of the Department as Vice-Chairperson, both of which should
15 
hold at least a director position, and four (4) additional members which shall be equally
16 
shared between the Department and LBP, who shall possess the necessary training
17 
and experience necessary for the Committee. The Committee shall directly report to
18 
the Secretary of the Department.
19 
The Committee shall exercise the following functions:
20 
(a) Recommend the lending policies such as, but not limited to, the
21 
criteria of eligible borrowers, eligible loan purpose, interest rate, fees
22 
and charges, collateral, guarantee, insurance, and other forms of
23 
security, and other terms and conditions of the credit facility;
24 
(b) Review the policies, and procedures, and formulate policies for the
25 
SCP;
26 
(c) Monitor the process and performance of the SCP;
27 
(d) Monitor the fund disbursements;
28 
(e) Act on issues or concerns relative to the implementation of SCP;
29 
(f) Conduct SCP performance evaluation; and
30 
(g) Exchange credit information with LBP, LWUA, and other relevant
31 
agencies.
32 
The SCP shall prioritize the following target beneficiaries:
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(a) Water Districts and LGU-run utilities in the Missionary Water Area;
2 
(b) Water Districts with low credit rating; and
3 
(c) Other priority Water Districts or eligible projects of the Water District
4 
to be identified by the Committee.
5 
Generally, local water service providers with existing Public-Private Partnership
6 
Projects including joint venture arrangements are not eligible to the SCP.
7 
All recommendations of the Committee shall be jointly approved by the
8 
Secretary and the Board of the LBP: Provided, That the existing rules, regulations, and
9 
policies of LBP shall govern all implementation activities of the SCP, such as but not
10 
limited to, credit and background investigation and ioan documentation, evaiuation,
11 
award, negotiation, collection, and restructuring: Provided, further, That the LBP and
12 
the Department shall exchange relevant information to assess the eligibility of the
13 
water service providers to be a recipient of a grant or subsidy. Relevant information
14 
may include, but is not limited to, credit standing, existing loan obligations, and
15 
compliance with previous or existing loan covenants.
16 
The IRR shall provide other functions of the Committee that are necessary for
17 
the effective implementation of the SCP, including the creation of sub-committees,
18 
their composition and delegated functions.
19 
Other Government Financial Institutions, such as, but not limited to,
20 
Development Bank of the Philippines, may provide a similar SCP for water service
21 
providers: Provided, That these other GFIs shall submit monitoring reports to the
22 
Department thru the Committee.
23 
Sec. 25. Support Program for Local Water Service Providers. - The
24 
Department, the Department of Finance, and the Department of Budget and
25 
Management shall issue guidelines in the disbursement of any grant, from any
26 
sources, and subsidy from the National Government: Provided, That the Department
27 
shall be the implementing agency for this purpose: Provided, further. That all income
28 
derived from the lending activities shall be recorded as LBP's income
29 
CHAPTER IV
30 
THE NATIONAL WATER SECTOR POLICY COUNCIL
31 
Sec. 26. Creation of the National Water Sector Policy Council. -There is hereby
32 
established a National Water Sector Policy Council (NWSPC), hereinafter referred to
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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;
(b) Director-General of the National Economic and Development Authority as 
the Vice-Chairperson;
(c) Secretary of the Department of Health (DOH);
(d) Secretary of the Department of the Interior and Local Government (DILG);
(e) Secretary of the Department of Energy (DOE);
(f) Secretary of the Department of Agriculture (DA);
(g) Secretary of the Department of Social Welfare and Development (DSWD);
(h) Secretary of the Department of Public Works and Highways (DPWH);
(i) Secretary of the Department of Budget and Management (DBM);
(j) Secretary of the Department of Environment and Natural Resources 
(DENR);
(k) Representative from the Office of the President (OP); and
(l) 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 
be as follows:
(a) Ensure harmonization of all policies involving water, land, subsurface, air 
and other resources which are connected to the water sector;
(b) Ensure a multi-stakeholder participation in the development, updating, and 
sharing of information system as policy, planning and decision-making tools; 
and
(c) Recommend the integration of harmonized policies and priority programs in 
the National Water Resources Management Plan and the National and 
Regional Septage Management Plan.
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CHAPTER V
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DWR
Sec. 28. Interface And Institutional Arrangements With Other Agencies. -
(a) The Department of Environmental 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 
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 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 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
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and studies by BSWM which may serve as input to policy formuiation by the 
Department;
(e) The Department shali coordinate with the DPWH in setting the policies and 
preparing the master plans for bulk water transmission, pipe networks, and 
related water delivery infrastructures as weil 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 
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;
(i) 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;
(j) 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
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Environment, Natural Resources and Energy, regarding the preparation of
2 
master plans of river basins that overlap with the inland waters within the
3 
BARMM's jurisdiction, and ensure the alignment of these plans with the
4 
NWRMP, Bangsamoro Development Plan, and other related regional plans
5 
of BARM M;
6 
(k)The Department shall coordinate with the Department of Human
7 
Settlements and Urban Development (DHSUD) in planning, monitoring and
8 
enforcing integrated land use and water resources management in the
9 
Comprehensive Land Use Development Plans and Zoning Ordinances of the
10 
LGUs to ensure, among others, the protectioh of water sources and that
11 
water availability is factored in proposed 
land use development plans and
12 
projects; and
13 
(I) The Department shall coordinate with relevant government agencies,
14 
including LGUs, with respect to development projects and to ensure cross-
15 
cutting collaboration between and among all water subsectors and facilitate
16 
inter-agency subsector coordination, strategic development, 
planning,
17 
monitoring and provision of technical, institutional and financial capacity
18 
building support to their different stakeholders at the water subsector level.
19 
CHAPTER VI
20 
WATER REGULATORY COMMISSION
21 
Sec. 29. Establishment. - There is hereby created and established an
22 
independent, quasi-judicial regulatory body to be known as the Water Regulatory
23 
Commission, hereinafter referred to as the Commission. The Commission shall have a
24 
Board of Commissioners, and shall be vested with powers and functions, as conferred
25 
and set forth hereunder.
26 
Sec. 30. The Central and Regulatory Units. - The Regulatory Units of the
27 
Commission shall be composed of the Regional Regulatory Units and the Central
28 
Regulatory Unit.
29 
The economic regulatory units and functions of the MWSS, NWRB, and LWUA
30 
are hereby transferred to the Commission, and shall collectively comprise its Central
31 
Regulatory Unit for Water Supply, Sanitation and Sewerage Services that; (a) provide
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services to more than one province; and (b) are owned, operated, or maintained by
2 
Metro Manila concessionaires.
3 
The Regional Regulatory Units shail be established by the Commission in
4 
accordance with the rules, regulations, guidelines, and standards that the Commission
5 
shall issue, and as provided in this Act.
6 
Sec. 31. Powers and Functions of the Commission. - The overall authority and
7 
powers of the Commission shall cover and apply to all service providers, whether
8 
private or public, providing or intending to provide water supply, including suppliers
9 
to subdivisions, bulk water suppliers, and other providers for sewerage, and septage
10 
treatment and disposal services for domestic, residential, institutional, industrial or
11 
commercial use.
12 
The Commission shall exercise the following powers and functions:
13 
(a) Issue and promulgate rules, regulations and guideiines as may be necessary
14 
to implement and enforce its powers and functions under this Act;
15 
(b) Issue licenses authorizing the operation of water supply, sanitation, and
16 
sewerage services in any specified area or areas within the Philippines;
17 
(c) Issue rules and regulations on terms and conditions prescribing minimum
18 
and mandatory terms for concession agreements, joint venture agreements,
19 
management agreements, service contracts or other contractual
20 
arrangements that may be entered into by government entities including
21 
local water utilities, LGUs, private sector entities, or other water service
22 
providers for the provision of water, sanitation, or sewerage services, such
23 
as, but not limited to the (i) the term, scope and total cost of the activity,
24 
which may be subdivided into phases; (ii) committed contributions and
25 
corresponding performance security requirements in accordance with any
26 
agreed phased implementation of the activity; and (iii) cost recovery
27 
schemes and percentage of the parties' share in the profits and losses,
28 
among others;
29 
(d) Require the review or approval of contracts or agreements that may impact
30 
on the tariff and rates of service provision entered into by service providers
31 
upon petition or motu proprio when public interest so dictates;
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(e) 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;
(f) 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;
(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 PCCs 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,
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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;
(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 violations;
(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;
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(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 any violation of 
this Act or of the license, order, rule regulation or requirement issued by the 
Commission;
(t) 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;
(u) 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;
(v) 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;
(x) 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;
(y) 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
(z) Such other incidental powers and functions may be necessary to attain the 
objectives of this Act.
Sec. 32. Composition of the Water Regulatory Commission. -
(a) The Commission shall be a collegial body composed of five (5) full-time 
members consisting of a Chairperson and four (4) members, who shall all
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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 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;
(b) The term of office of each member of the Commission shall be seven (7) 
years: Provided, That among the members first appointed, the Chairperson 
shall serve for a period of seven (7) years, two (2) members shall serve for 
five (5) years and the other two (2) members shall serve for three (3) years: 
Provided, further. That any member whose term has expired as specified 
herein shall serve as such until 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, finaiiy. That in no case shall 
any member serve for more than seven (7) years in the Commission.
(c) The Commission shall meet as often as may be necessary on such day or 
days as the Chairperson may fix. The presence of at least three (3) members 
of the Commission shall constitute a quorum, which shall be necessary for 
the transaction of any business. The affirmative vote of majority of the 
members of the Commission where a quorum is present shall be necessary 
for the adoption of any order, resolution, decisions, or other act of the 
Commission in the exercise of its quasi-judicial functions: Provided, That in 
promulgating rules, regulations, guidelines and in the 40 exercise of its
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quasi-legislative functions, an affirmative vote of three (3) members shall
2 
be required.
3 
(d)The Chairperson of the Commission shall exercise general executive control
4 
and supervision of the Commission and its members, staff and personnel,
5 
agents, and representatives. Within three (3) months from the creation of
6 
the Commission and the appointment of all members of the Commission,
7 
the Chairperson shall submit for the approval by the President of the
8 
Philippines the new organizational structure and personnel positions
9 
necessary to carry out the powers and functions of the Commission, subject
10 
to the review and approval of the DBM. The personnel positions of the
11 
Commission shall be filled by regular appointments in accordance with civil
12 
service laws, rules, and regulations.
13 
(e) Members of the Commission shall enjoy security of tenure and shall not be
14 
suspended or removed from office except for just cause as specified by law.
15 
(f) The Chairperson and members of the Commission or any of their relatives
16 
within the fourth civil degree of consanguinity or affinity, legitimate or
17 
common law, shall be prohibited from holding any interest whatsoever,
18 
either as investor, stockholder, officer or director, in any company or entity
19 
engaged in provision of water supply and distribution, septage management
20 
and sewerage services and must, therefore, divest through sale or legal
21 
disposition of any and all interests in the water sector upon assumption to
22 
office.
23 
Sec. 33, Secretariat of the Commission. - The Commission shall establish a
24 
Secretariat which shall provide the Commission with technical and support services
25 
such as, but not limited to the following:
26 
(a) Provide the necessary technical inputs and secretariat support to the
27 
Commission to facilitate the conduct of its functions;
28 
(b) Coordinate with, monitor, and assess the activities of the Regulatory Units
29 
to ensure proper implementation of the rules, regulations, and guidelines
30 
promulgated by the Commission;
31 
(c) Maintain a database on the water supply, sanitation, and sewerage
32 
subsector; and
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(d) Coordinate with other relevant agencies of the national or local government
2 
on any matter relating to water supply, sanitation, and sewerage.
3 
Sec. 34. The Commission Secretariat. - The Executive Director shall head the
4 
Commission Secretariat, keep and maintain the official records, and report of the
5 
proceedings of the Commission, and administer oaths in all matters falling within the
6 
jurisdiction of the Commission.
7 
The Commission shall appoint, fix the compensation, and determine the status,
8 
qualifications, and duties of the Executive Director and the Secretariat staff subject to
9 
civil service laws, rules, and regulations. The Executive Director shall have at least ten
10 
(10) years of experience in the field of law, business, commerce, finance, accounting
11 
or public administration, water or utility economics, management, physical or
12 
engineering services, hydrology and other related services. The members of the
13 
technical staff, except those performing purely clerical functions, shall possess at least
14 
a Bachelor's Degree in any of the following lines of specialization: law, public
15 
administration, economics, finance, engineering, accounting, or management.
16 
The Executive Director shall be responsible for the effective implementation of
17 
the policies, plans, programs, rules, regulations, and directives of the Commission;
18 
coordinate and supervise the activities of the different operating units under the
19 
Commission; and perform such functions as may be assigned by the Chairperson and
20 
other members of the Commission.
21 
Sec. 35. Enhancement of Technical Competence. - The Commission shall
22 
establish rigorous training programs for its staff for the purpose of enhancing the
23 
technical competence of the Commission in the following areas: evaluation of technical
24 
performance and monitoring compliance with service and performance standards,
25 
performance-based rate-setting reform, environmental standards, and such other
26 
areas as will enable the Commission to adequately perform its duties and functions.
27 
Sec. 36. Compensation and Other Emoluments. - The compensation of the
28 
members of the Commission and its staff shall be exempted from the coverage of
29 
Republic Act. No. 11466, otherwise known as the "Salary Standardization Law of
30 
2019", as amended. For this purpose, the schedule of compensation of the
31 
Commission shall be submitted for approval of the President of the Philippines. The
32 
compensation schedule of the Commission shall be implemented within six (6) months
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from the effectivity of this Act and maybe upgraded by the President of the Philippines
2 
as the need arises: Provided, That in no case shall the compensation of the
3 
Commission and its staff be upgraded more than once a year; Provided, further. That
4 
pertinent civil service laws, rules, and regulations shall be applicable to the
5 
Commission.
6 
The Chairperson and members of the Commission shall initially be entitled to
7 
the same salaries, allowances and benefits as those of the Presiding Justice and
8 
Associate Justices of the Court of Appeals, respectively.
9 
CHAPTER VII
10 
REGISTRATION AND LICENSING
11 
Sec. 37. Registration and Licensing of AH Water Suppiy, Sanitation, and
12 
Sewerage Services. - All water supply, sanitation, and sewerage service providers,
13 
including bulk water suppliers and those providing services to subdivisions and other
14 
service providers, shail register with the Commission and, subject to its rules,
15 
guidelines, procedures and other issuances of the Commission, obtain a license to
16 
operate from the appropriate regulatory units: Provided, That the Commission shall
17 
act on the application for the issuance or the conversion of such licenses and renewals
18 
thereof within the maximum period of one (1) year as provided under this Act or by
19 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient
20 
Government Service Delivery Act of 2018".
21 
The Commission shall also ensure that the grant and revocation of licenses are
22 
carried out fairly, transparently, and without discrimination. Issuances of the
23 
Commission shall specify, among others, the qualifications, requirements and
24 
procedure for the grant and revocation of licenses including the standards and
25 
performance targets that shall continuously be complied with to keep the licenses
26 
valid.
27 
The Commission shall specify the requirements and procedure for existing
28 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience
29 
and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by
30 
LWUA, to convert their existing certificates into licenses to operate.
31 
All local water utilities, existing water service providers, or holders of CPCN or
32 
CoC shall be duly prioritized in the issuance of the licenses to operate over the areas
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where they currently operate or as may be covered by their franchises. The submission
2 
of the CPC, CPCN, provisional authority, or the CoC shall be sufficient basis for the
3 
issuance of the new and converted or updated licenses to operate required and
4 
contemplated under this Act. To ensure continuity of service, the Commission shall
5 
complete the issuance of such converted or updated licenses not later than six (6)
6 
months from the effectivity of the implementing rules and regulations issued by the
7 
Commission pursuant to this Act.
8 
Unless otherwise provided in this Act or by the Commission, no public water
9 
supply, sanitation, and sewerage service provider shall commence or conduct the
10 
business of providing water supply, sewerage, and sanitation services without first
11 
obtaining a license.
12 
Concession agreements and other contracts for water supply provision and
13 
water sanitation and treatment services currently existing shall remain valid and
14 
enforceable unless otherwise terminated, after due notice and hearing for reasons
15 
provided in the existing terms and conditions under the concession or service
16 
agreement or contract, or invalidated by the Commission, after due notice and
17 
hearing, where national security, national emergency, or public interest so dictates.
18 
Sec. 38. Conditions of License. - The Commission may impose such conditions
19 
in the issued license, as it may deem necessary, such as, but not limited to:
20 
(a) Tariffs, rates, and charges that may be imposed from its customers or
21 
consumers;
22 
(b)Term fixing the duration of the privilege;
23 
(c) Grounds for modification, suspension, or cancellation of the license;
24 
(d) Minimum technical performance and service level standards, such as but
25 
not limited to: (i) water pressure; (ii) minimum flow rates; (lii) connections;
26 
(iv) sewerage discharge, billing, and metering requirements, and (v)
27 
sanctions for failure to comply with the standards set;
28 
(e) Expansion targets and service level improvements over time;
29 
(f) Restrictions or conditions for transferability of the business or controlling
30 
interest in the business;
31 
(g) Reportorial requirements and obligations of the grantee; and
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17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
(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:
(1) Foster the maintenance and development of efficient, coordinated, 
and viable operation of their licensed activities;
(2) 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;
(3) Comply with drinking water quality requirements and standards that 
may be established by the Commission, Department, and DOH; and
(4) 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 
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:
44


1 
(1) Publish the Tariff and other charges approved by and the terms and
2 
conditions imposed by the Commission for the provision of water
3 
supply, sanitation, and sewerage services;
4 
(2) Prepare, within three (3) months from the issuance of a license, in
5 
consultation with its customers, a customer service code specifying
6 
the manner and procedure for:
7 
(i) Metering, billing, and collection of the licensee's approved
8 
tariff and other charges;
9 
(ii) Disconnection or suspension of service in case of non-
10 
payment of tariffs and other charges, or acts of pilferage; and
11 
(iii) Recommendation and recovery of arrears in tariffs and other
12 
charges.
13 
(3) Maintain financial accounts in accordance with the manner and
14 
procedure specified in the license and as may be required by the
15 
Commission; and
16 
Sec. 40. Setting Tariffs, Rates and Other Charges. - The Commission shall
17 
establish tariffs, rates and other charges which are fair and reasonable, and ensure
18 
environmental sustainability, economic viability, and a fair return on investments.
19 
Service providers may apply for the setting of tariffs, rates, and charges based
20 
on and consistent with a scientific and evidence-based rate-setting methodology that
21 
the Commission shall, after due consultation, define and publish, taking into account
22 
the following, among others:
23 
(a) Reasonable and prudent capital and recurrent costs of providing the service
24 
including a reasonable rate of return on capital;
25 
(b) Efficiency of the service;
26 
(c) Incentives for enhancement of efficiency;
27 
(d) Capacity to pay of consumers;
28 
(e) Equity considerations;
29 
(f) Environmental sustainability;
30 
(g) Administrative simplicity;
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1 
(h) In cases involving valid and subsisting concession agreements prior to the
2 
enactment of this Act, the methodology provided under the concession
3 
agreement;
4 
(i) To the fullest extent practicable, the terms and conditions of the tariffs,
5 
rates or other price-setting mechanisms set forth in any concession
6 
agreement, joint venture agreement or other similar agreement for the
7 
provision of water or sanitation services by an existing service provider.
8 
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid
9 
and reasonable unless invalidated by the Commission, after due notice and hearing,
10 
acting on a protest or contest duly filed with the Commission to ensure continuity of
11 
service, application for setting of tariffs, rates and other charges shall be decided
12 
within a non-extendible period of ninety (90) days from the date of filing thereof, and
13 
the failure of the Commission to act on any such applications shall result in a
14 
provisional approval: Provided, That in no case shall proceedings on any applications
15 
for the setting of tariffs, rates and other charges exceed to a total period of one
16 
hundred twenty (120) days reckoned from the date of filing of the application.
17 
Sec. 41. Direct Access. - Fifty-one percent (51%) of the registered water
18 
consumers in a service area, municipality, city or province may petition for direct
19 
access to water from any water service provider subject to concurrence by and
20 
reasonable compensation to the service provider and approval by the Commission. If
21 
the petition for direct access from any water service provider is approved by the
22 
Commission, the new water service provider shall reimburse the existing service
23 
provider for, as applicable, either the book value or the market value as determined
24 
by an independent appraiser accredited by the Commission, whichever is higher, of
25 
the water source, water supply, or water distribution or transmission facilities,
26 
pipelines and other equipment which shall be transferred to or utilized by the new
27 
water service provider. The Commission shall promulgate the implementing rules and
28 
procedures for this mode of service, which shall include, among others, financial and
29 
technical capability of the new service provider.
30 
Sec. 42. Innovative Schemes to Improve Efficiency and Management of
31 
Systems. - The Commission shall promote innovative schemes such as the
32 
consolidation or integration of water supply, sanitation, and sewerage services, or
46


1 
providers in the same service area, where it shall result in improved efficiency, service
2 
expansion and lower costs.
3 
To this end, the Commission shall establish and issue such rules and guidelines
4 
as may be necessary to (a) create performance-based and time-bound incentives to
5 
encourage efficiency and service expansion; (b) establish the standards and targets
6 
that service providers are required to meet; and (c) define the fines and penalties that
7 
shall be imposed for failure to meet such standards and targets.
8 
CHAPTER VIII
9 
PROCEEDINGS BEFORE THE COMMISSION
10 
Sec. 43. Proceedings Before the Commission. - For the purpose of any
11 
investigation, inquiry, or proceeding, the Commission shall:
12 
(a) Issue subpoena duces tecum and subpoena ad testificandum;
13 
(b) Appoint hearing officers to hear and receive evidence on behalf of the
14 
Commission;
15 
(c) Cite any person or party for contempt for refusal to appear, testify or comply
16 
with an order of the Commission on any matter that is the subject of
17 
investigation, inquiry or proceeding before the Commission.
18 
Sec. 44. Orders and Decisions of the Commission. - Any order, resolution, or
19 
decision of the Commission shall be promulgated promptly, expeditiously, reasonably,
20 
and in writing, and shall state clearly and distinctly the facts and law on which it is
21 
based. The Commission shall publish and make available for public inspection, all
22 
decisions and final orders in the adjudication of contested cases or applications.
23 
Sec. 45. Appeais Procedure. - The orders, rulings, and decisions of the
24 
Commission are final and executory unless appealed to the Court of Appeals within
25 
fifteen (15) days from receipt of notice of such order, ruling or decision: Provided,
26 
That orders, rulings, and decisions of the Commission approving tariffs, shall be
27 
immediately executory and may be suspended only upon appeal and filing of a bond,
28 
in an amount to be fixed by the Commission, to answer for damages occasioned by
29 
the suspension or stay of execution of such orders, rulings, and decisions.
30 
Sec. 46. Prohibition Against Injunctions. - Except for the Supreme Court, no
31 
temporary restraining order, preliminary injunction, or preliminary mandatory
47


1 
injunction may be issued by any court to restrain any proceeding before, or the
2 
implementation or execution of any order, ruling, or decision of the Commission.
3 
CHAPTER IX
4 
TRANSITORY PROVISIONS
5 
Sec. 47. Transition Period. - The Department shall, by virtue of this Act be
6 
subrogated to all the rights and assume all the functions of the government agencies
7 
and units whose powers and functions have been subsumed, absorbed, transferred or
8 
attached to the Department. The Commission shall also, by virtue of this Act, be
9 
subrogated to all the rights, and assume all the functions, of the Water Utilities Division
10 
of the NWRB, the regulatory offices of MWSS and LWUA, and all other government
11 
agencies and units whose powers and functions have been transferred to the
12 
Commission in accordance with the civil service laws, rules, and regulations.
13 
The transfer of powers and functions to the Department or the Commission of
14 
the concerned agencies as herein provided for, shall be deemed completed within six
15 
(6) months after the effectivity of this Act.
16 
All agencies transferred, subsumed and attached to the Department or the
17 
Commission, shall continue to function under their present mandates until the six-
18 
month transition period mandated under this Act shall have lapsed. The transfer of
19 
powers and functions shall include all applicable funds, personnel, records, property
20 
and equipment, as may be necessary. The heads of the affected agencies shall
21 
continue to serve until replaced.
22 
All rights and functions of the affected agencies are hereby transferred to and
23 
assumed by the Department or the Commission, and shall be acted upon in
24 
accordance with the rules and regulations of the Commission on Audit and other
25 
pertinent laws, rules, and regulations.
26 
Sec. 48. Absorption or Separation from Service of Employees of the Subrogated
27 
Agencies. - The current employees of all government agencies and units whose
28 
powers and functions have been transferred to, absorbed or subsumed by the
29 
Department or Commission shall enjoy security of tenure, in accordance with their
30 
staffing pattern and the selection process as prescribed under Republic Act No. 6656
31 
or the "Government Reorganization Law".
48


1 
Employees opting to be separated from the service as a consequence of the
2 
consolidation and reconstitution under the provisions of this Act, shall, within one (1)
3 
month from their separation or phase out from the service, receive separation benefits
4 
in accordance with existing laws and those who are qualified to retire shall be allowed
5 
to retire and be entitled to all benefits under existing retirement laws, subject to
6 
existing rules and regulations of the Commission on Audit.
7 
CHAPTER X
8 
FINAL PROVISIONS
9 
Sec. 49. 
Applicability of Ease of Doing Business Law. - The prescribed
10 
processing time provided under Section 9(b) of Republic Act No. 11032 shall be
11 
applicable to all agencies and LCDs covered under this Act particularly on accessing
12 
government services.
13 
Sec. 50. Appropriations. - The amount necessary for the initial implementation
14 
of this Act shall be charged against the current year's appropriations of the agencies,
15 
entities, divisions, sections or units subsumed or transferred to the Department.
16 
Thereafter, such amount shall be included in the annual General Appropriations Act.
17 
Sec. 51. Implementing Rules and Regulations. - Upon the effectivity of this
18 
Act, the Department and the Commission, as may be applicable, as well as NEDA,
19 
DBM, DENR, CSC, and the National Commission on Indigenous Peoples in consultation
20 
with concerned government agencies shall promulgate the implementing rules and
21 
regulations (IRR) of the Department and the Commission necessary for the effective
22 
implementation of this Act within one hundred eighty (180) days after its effectivity.
23 
Sec. 52. Separability Clause. - If any reason, any portion or provision of this
24 
Act shall be held unconstitutional or invalid, the remaining provisions not affected
25 
thereby shall continue to be in full force and effect.
26 
Sec. 53. Repealing Clause. -
27 
(a) The following provisions are hereby repealed:
28 
(1) Section 3 (h) and Section 12 on the fixing of water rates and sanitation
29 
service fees. Section 3 (n) on regulation of waterworks and deep wells,
30 
and Section 3 (p) on the regulation of waterworks and sanitation systems
31 
in privately owned subdivisions of 6 Republic Act No. 6234;
49


1 
(2) Section 62 on regulation and Section 63 on rate review of Presidential
2 
Decree No. 198 otherwise known as the "Provincial Water Utilities Act of
3 
1973" as amended by Letter of Instruction No. 700 "Providing Measures
4 
To Control And Regulate Increase In Water Rates", Letter of Instruction
5 
No. 744 "Relative To Reliable Water Supply At Reasonable Rates In The
6 
Countryside", Executive Order No. 124-A, series of 1987 "Reorganization
7 
Act of the Ministry of Public Works and Highways", and Executive Order
8 
No. 123, 30 January 1987 "Reorganization Act of Ministry of Social
9 
Services and Development";
10 
(3) Executive Order No. 22, series of 2023, creating the Water Resources
11 
Management Office of the DENR; and
12 
(4) Section 154, Article V, Chapter I, Title One, Book II of Republic Act No.
13 
7160 otherwise known as the "Local Government Code of 1991", as
14 
amended, and its implementing rules and regulations on the power of
15 
the LGUs to fix the rates of water utilities owned, operated and
16 
maintained by them within their jurisdiction.
17 
(b)AII other laws, presidential decrees, executive orders, presidential
18 
proclamations, rules and regulations, or parts thereof which are inconsistent
19 
with the provisions of this Act are hereby repealed or amended accordingly.
20 
Sec. 54. Effectivity. - This Act shall take effect fifteen (15) days after its
21 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
50