TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
J'JL-7 A 8 SO
SENATE
Senate Bill No. 145
Introduced by Senator Juan Miguel F. Zubiri
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
According to water.org, a global nonprofit organization working to bring water and 
sanitation to the world, out of 115 million Filipinos, 60 million lack access to safe water 
sources and 43 million lack access to a safe toilet. On top of that, our water sources 
are constantly on tremendous pressure due to the ever-increasing demand of our 
population and a burgeoning economy. This is more pronounced during the dry season 
when many of our dams and water sources reach critical levels.
Aside from water sources problems, another issue that we face is the quality of 
water from our sources. The quality of water from many areas continue to deteriorate 
due to several factors, among them is pollution.
These problems and issues are difficult to resolve when the government has more 
than 30 different agencies or units that have water-related functions or deal with water 
issues. To effectively implement the Philippines' roadmap to achieve universal water 
and sanitation services coverage by 2028 and achieve synergy and close coordination 
among agencies with water-related functions, it is imperative to have a department 
that will house all these agencies with water-related functions.
This bill seeks to establish the Department of Water Resources. This Department 
once created, will be the lead agency to implement the country's policies and programs 
on water. It will have the whole-of-government approach in dealing with water issues. 
It will provide synergy, close coordination among government agencies and 
synchronize all the government's policies and programs on water.
In view of the foregoing, approval of this bill is urgently sought.
JUAN MIGUEL F. ZUBI


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
25 JUL -7 A b ‘-bO
SENATE
Senate Bill No. 145
Introduced by Senator Juan Miguel F. Zubiri
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 House of Representatives of the Philippines in 
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the "National Water 
Resources Management Act"
Sec. 2. Declaration of PoUcy.-
(a) The State recognizes that water is fundamental to individual life, health, and 
dignity, and that every person has a right to access safe and clean water for 
personal and domestic use;
(b) The State affirms that the right of all Filipinos to safe and clean drinking water 
and sanitation
is essential to the full enjoyment of life and all human rights and hence, the 
attainment of a nationwide water supply, sanitation, and sewerage services 
at reasonable rates must be pursued in an orderly, rational, efficient, and 
dynamic manner;
(c) The State emphasizes that water is a public good subject to diverse use in 
economic, agricultural, and industrial activities, and is thus a scarce resource 
which must be carefully regulated to prevent resource depletion and to ensure 
its availability for future generations;
1


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


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(ii) productive services which reflect the economic functions of providing natural 
resource inputs and space for production and consumption, and
(iii) consumer or consumption services which provide for physiological as well as 
recreational and related needs of human beings;
(c) Flood Control refers to methods, acts, and protocols to be observed in order to 
prevent and reduce the detrimental and catastrophic effects of flood waters 
which include sediment-laden or turbid flows, and hyper-concentrated flows or 
debris flows;
(d) Flood Risk Management (FRM) refers to such acts of defining and determining 
the appropriate methods, acts and protocols aimed at preventing and reducing 
the risk of incurring loss of both life and property due to flood waters. Flood 
risk management consists of a cycle of prevention, mitigation, adaptation, 
preparedness, and early warning, and, response and recovery. The elements of 
FRM include: integrating land-use planning and coastal zone management into 
water management; adopting a holistic approach so that FRM is part of wider 
risk or multi-hazard management of earthquakes, landslides, and storm surges; 
managing risk and uncertainty as a whole so it is not only hydrological 
uncertainties but also social, economic, and political uncertainties on account of 
human behavior and cultural dimensions of FRM;
(e) Infrastructure and public works refer only to wholly or primarily water-related 
projects and shall not incorporate projects that do not otherwise fall within the 
purview of the objectives, powers, and duties of the Department of Water 
Resources created under this Act;
(f) Integrated Water Resource Management (IWRM) refers to a systematic, 
collaborative and multi-stakeholder process which promotes the coordinated 
development and management of water, land, and related resources within 
geophysical boundaries in order to maximize the resultant economic and social 
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;


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(i) 
Missionary Water refers to water supply or services to areas that have no 
existing safe water supply and services due to geographic limitation or absence 
of economic and market viability;
(j) Nationai Water Resources Management Pian (NWRMP) refers to a policy 
document that incorporates a framework to guide the development and 
management of all water resources in the Philippines, the general strategies 
and work to be pursued to ensure the sustainability of the resource and work 
towards the water security; and provides top-level direction on the utilization of 
existing water resources in line with national development plans, policies, and 
programs in accordance with the IWRM framework. The NWRMP shall also 
include a water infrastructure development program for all waters of the 
country as well as provide general guidance on how this shall be within an 
integrated financing framework that can draw on public, private and 
international development funding sources;
(k) Reguiatory Units refer to the regulatory offices of the Water Regulatory 
Commission established under this Act;
(l) River basin refers to an area of land drained by a stream or body of fixed water 
and its tributaries which have a common outlet for surface run-off;
(m) River Basin Organization (RBO) refers to multi-stakeholder organizations which 
plan, coordinate, and monitor activities within a river basin cluster;
(n) Sanitation refers to the provision of facilities and services for the safe 
management of septage and sewage, from the collection to containment, and 31 
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 refers to any entity, natural or juridical, whether private or 
public, providing or intending to provide water supply, including bulk water 
suppliers, sewerage, septage treatment, and disposal services for domestic, 
residential, institutional, industrial, or commercial use;


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(s) Sewage rofers 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 
18 or the combination thereof;
(t) 
Sewerage refers to any system or network of sanitary pipelines, ditches, 
channels or conduits including pumping stations, lift stations and force mains, 
service connections including other infrastructure, devices or appliances 
appurtenant thereto, which includes the collection, transport, pumping and 
treatment of sewage to a point of disposal;
(u) Sewers refer to pipes or such other works or structures, which are built and 
constructed to carry, transport, and dispose sewage;
(v) Tariffs refer to such amounts which may be charged by licensees for their water 
supply, sewerage, or sanitation services based on principles, standards, and 
guidelines established by the Water Regulatory Commission;
(w) 
Water Demand Management refers to any method whether technical, 
economic, administrative, financial, or social that will accomplish one or more of 
the following:
(i) Reduce the quantity or quality of water required to accomplish a specific 
task;
(ii) Adjust the nature of the task or the way it is undertaken so that it can be 
accomplished with less water or with lower quality water;
(iii) Reduce the loss in quantity or quality of water as it flows from source, 
through use, to disposal;
(iv) Shift the timing of use from peak to off-peak periods; and
(v) Increase the ability of the water system to continue to serve society during 
times when water is in short supply.
(x) 
Water District refers to government-owned and controlled corporations 
organized under Presidential Decree No. 198, otherwise known as the 
"Provincial Water Utilities Act of 1973", as amended, created primarily to 
acquire, install, operate, maintain and improve water supply and distribution 
systems for domestic, industrial, and municipal uses of residents and to provide, 
maintain, and operate wastewater collection, treatment and disposal facilities 
within the boundaries of the district;


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(y) Water pollution refers to any alteration of the physical, chemical, biological, or 
radiological properties of a body of water resulting in the impairment of its 
purity or quality;
(z) Water Resource refers to water under the ground or groundwater; water above 
the ground such as surface water, run-offs, floods, storm water and urban 
drainage; treated wastewater, water in the atmosphere or rain water; and the 
waters of the sea within the territorial jurisdiction of the Philippines;
(aa) Water resource allocation refers to the process of sharing the limited water 
resources between competing users. This consists of determining water 
availability and determining how the water should be shared among 
competing users. For the purpose of this Act, resource allocation shall also 
mean water resource allocation;
(bb) Water Resources Regions refer to the contiguous clusters of river basins 
created under this Act for administrative purposes under the Department of 
Water Resources;
(cc) Water Resources Regional Offices (WRROs) refer to the field offices of the 
Department of Water Resources, as created under this Act, which are to be 
established in accordance with the identified water resources regions in the 
country;
(dd) Water service cooperative refer to cooperatives organized primarily to own, 
operate, and manage water systems for the provision and distribution of 
potable water for the members and their households;
(ee) Water Service Providers (WSPs) refer to the water districts, any Local 
Government Unit (LGU)-run water utility, Barangay Waterworks and 
Sanitation Association, Rural Waterworks and Sanitation Association, water 
service cooperatives, and private sector entities that provide water supply 
services to any given area;
(ff) Water supply service refers to any activity comprising developed water 
sources, communal faucet system or stand posts, waterworks system or 
individual house connections, which include bulk suppliers, suppliers to 
subdivisions, or other similar water service providers.
CHAPTER II
DEPARTMENT OF WATER RESOURCES


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Sec. 4. Establishment of the Department of Water Resources. - There is 
hereby established the Department of Water Resources, hereafter referred to as the 
Department.
Sec. 5. Mandate and Objectives. - The Department shall be the primary 
policy, planning, coordinating, implementing, monitoring, and administrative entity of 
the Executive Branch of the government responsible for the comprehensive, 
sustainable, climate-resilient, and integrated development and management of the 
water resources of the Philippines, and their optimal allocation and use for domestic 
and municipal water supply, sanitation, irrigation, hydropower, industry, navigation, 
flood management, and recreation, and water utilization aspects of fisheries or 
aquaculture.
The Department shall also be the primary agency responsible for the planning 
and policy formulation towards the attainment of universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sewerage and sanitation 
services for all Filipinos.
Sec. 6. Powers and Functions. -The Department shall exercise the following 
powers and functions:
I. Policy Making And Planning
(a) Ensure that Integrated Water Resources Management (IWRM) is adopted as 
the strategic framework for water management policymaking and planning 
in the country and coordinate the implementation, promotion, revision and 
enhancement of IWRM plans;
(b) Formulate policies, strategies, and targets in coordination with other 
relevant agencies and stakeholders to meet the goals and objectives for 
water resource sustainability and protection, water allocation and 
management, water supply, sanitation, and sewerage, water quality, 
irrigation, hydropower, flood control, storm water utilization, and urban 
drainage. Such policies shall, among other guidelines, integrate the relevant 
issues of water, sewerage, sanitation, food security, energy, environment, 
flood control, and climate change;
(c) Formulate long-term policies to balance the sustainability and optimal 
multiple use of water resources, define the hydrologic boundaries of basins 
of the existing water supply sources, and develop or update existing River 
Basin Master or Comprehensive Plans which includes all aspects of water 
management and development such as water supply, sewerage, and 
sanitation, irrigation, flood control and storm water or urban drainage.


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drought risk management, water resource development systems and other 
public water works projects, including phasing of implementation;
(d) Harmonize all relevant national river basin policies and serve as the national 
policy coordination office for LGUs and relevant stakeholders in the 
development and sustainability of river and catchment basins;
(e) Identify, based on the river basin master plans, priority projects for water 
infrastructure development per river basin, including water supply, sanitation, 
irrigation, hydropower, flood control and storm water or urban drainage, 
drought risk management, water resource development systems and other 
public works projects;
(0 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 Department of 
Economy, Planning and Development (DEPDev) 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 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;


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G) Review and provide oversight over aii water-related development plans and 
programs of any agency or local government unit (LGU) within the context of 
the NWRMP and overail national plans and programs;
(k) Assist and provide the DEPDev with the required data and input from the 
water sector in the formulation of the country's short-term and iong-term 
strategic development plans and actions, and recommend to the DEPDev 
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 storm water 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 quaiity in the construction of 
water, sanitation, irrigation, hydropower, flood control and drainage 
infrastructure; and ensure that the planning and design of water 
infrastructure considers the highest efficiency and most appropriate 
technoiogy and quality;
(n) Ensure that gender equality, sociai inciusion, 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 iead agency in ensuring the effective impiementation of all laws 
and implementing rules and regulations on water resources;
(p) Review ali water laws and implementing rules and regulations and propose 
amendments thereof to Congress, and advise any agency on the implications 
of government actions, poiicies, and programs to water suppiy, sewerage, 
and sanitation;
(q) Authorize its representatives or any deputized agent to enter any property of 
pubiic dominion or any private iand, buiiding or enciave, whether inhabited or 
not, or authorize a representative thereof, for the purpose of conducting


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hydrological surveys and investigations, including assessing and evaluating 
the conditions of water facilities installed, and determining compliance with 
water laws and standards; and
(r) Issue and promote rules and regulations as may be necessary to implement 
and enforce its powers and functions under this Act;
II. Data Collection and Evidence Gathering
(a) Establish, operate, and maintain a centralized water resources data center 
necessary for the scientific survey and appraisal of surface and ground water 
potentials of the country and determine the annual renewable water available 
per available water resources region;
(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 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 hydro meteorological 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;
10


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(h) Establish, operate, and maintain observation station networks and a 
centralized water resources data center for the scientific survey and appraisal 
of surface and groundwater potentials of the country, and determine the 
annual renewable water available per water resources region;
(i) Develop and continuously update a computerized decision support system 
that incorporates data management system relating to acquisition and 
database, model base in terms of physical design, planning and decision 
models, and user-friendly interface concerning graphical and visualization 
tools; and
G) 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 water infrastructure, legal and 
technical mechanisms for intra-sectoral transfers;
(v) Guidelines for the determination of costs and fees of all water rights, 
tariffs, permits, and licenses through a science-based method which will 
accurately reflect the current or future projected state of the water
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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, storm water, 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;
(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
12


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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 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 Framework and Development Plan.
VI. Other Functions
(a) Create, when necessary, water resource subsidiaries, instrumentalities, and 
entities to engage in water transmission, water distribution, waste water
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treatment and management, and sanitation in accordance with existing 
relevant laws, without prejudice to private entities capable of and willing to 
engage in the aforementioned activities through concession agreements, 
joint venture agreements, bulk water agreements, or service agreements or 
contracts. For this purpose, the Department shall ensure compliance with 
existing frameworks, rules, regulations and guidelines for private sector 
participation in water transmission, water distribution, waste water treatment 
and management, storm water management, and sanitation;
(b) Enter into contracts, joint venture agreements, public-private partnerships, 
and memorandum of agreements or understanding, either domestic or 
foreign relating to investment and financing water related projects, under 
such terms and conditions as the Department may deem proper and 
reasonable subject to existing laws;
(c) Review existing guidelines appropriate for private sector participation in the 
water sector and submit recommendations to the Public Private Partnership 
(PPP) Center and other concerned agencies to promote and enable more 
PPPs in the sector; and
(d) Exercise such other powers and functions necessary or incidental to the 
effective administration and management of the country's water resources.
Sec. 7. Offices, Functions, and Personnei to be Completely Absorbed by 
the Department. - The following offices are hereby abolished, and their respective 
powers and functions, and the corresponding personnel, funds and appropriations, 
records, equipment, and property shall be absorbed by the Department:
(a) National Water Resources Board, whose mandate, powers, and functions are 
provided in Presidential Decree No. 424 creating the National Water 
Resources Council, now NWRB, as amended: Provided, That its water utility 
regulation units and functions vested under Commonwealth Act No. 146, also 
known as the "Public Service Act", as amended, shall be absorbed by the 
Water Regulatory Commission created under this Act: Provided, further. That 
its resource allocation or regulation units vested under Presidential Decree 
No. 1067 shall be absorbed by the Department under the National Water 
Resources Adjudication Board and the Resource Allocation Office, also 
created under this Act;
(b) Local Water Utilities Administration (LWUA) with its services, departments 
and divisions, whose mandate, powers and functions are provided for in Title 
III of Presidential Decree No. 198, as amended, otherwise known as the
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"Local Water Utilities Administration Law": Provided, That its economic 
regulatory functions over local water districts shall be fully absorbed by the 
Water Regulatory Commission created under this Act: Provided, further. That 
its function to provide technical assistance to local water service providers 
shall be absorbed by the Department under the Local Water Service Providers 
Bureau also created under this Act;
(c) River Basin Control Office (RBCO) of the DENR whose mandate, powers and 
functions are found in Executive Order No. 510, series of 2006, and Executive 
Order No. 816, series of 2009, as amended: Provided, That the DENR shall 
continue to have primary authority and responsibility for protecting the 
environment and managing the country's watersheds and reforestation 
activities: Provided, further. That the targeting of priority watershed areas 
shall be coordinated with the Department;
(d) Manila Bay Coordinating Office (MBCO) of the DENR which was strengthened 
by virtue of DENR Administrative Order 2011-01, to coordinate the efforts of 
the fourteen (14) national agencies covered by the Mandamus Order of the 
Supreme Court to rehabilitate Manila Bay;
(e) Water Supply and Sanitation Unit of the Department of the Interior and Local 
Government; and
(f) Water Resource Management Office of the DENR whose mandate, powers, 
and functions are provided in Executive Order No. 22, series of 2023.
Sec. 8. Powers and Functions to be Transferred to the Department. - 
The powers and functions of the following agencies, bureaus, and units and the 
corresponding personnel, funds and appropriations, records, equipment, and property 
are also hereby transferred to the Department:
(a) The powers and functions of the DPWH with regard to the planning, 
programming, administration, monitoring, and management of the National 
Sewerage and Septage Management Program (NSSMP); and
(b) The following functions of the dissolved Pasig River Rehabilitation 
Commission and transferred to the Manila Bay Task Force per Executive 
Order No. 93, series of 2019:
(i) Updating and leading in the overall implementation of the Pasig River 
Rehabilitation Master Plan; and
(ii) 
Ensuring that the easements provided for in the Civil Code and 
other relevant laws are enforced, especially in all the esteros and 
waterways as well as abating the dumping of untreated wastewater and
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sewage into water systems, including all acts and omissions in violation 
of Presidential Decree No. 984, as amended, and other related laws.
Sec. 9. Attached Agencies. - The Department shall exercise administrative 
supervision over the following agencies for purposes of policy and program 
coordination, monitoring, and evaluation:
(a) The Metropolitan Waterworks and Sewerage System (MWSS), whose 
mandate, powers, and functions are defined under Republic Act No. 6234, 
as amended entitled, "An Act Creating the Metropolitan Waterworks and 
Sewerage System and Dissolving the National Waterworks and Sewerage 28 
Authority, and For Other Purposes," shall be transferred from the DENR and 
attached to the Department: Provided, That the MWSS shall continue to 
facilitate the exercise by the concessionaires of their responsibility; carry out 
accounting and notification functions; monitor, report, and administer loans; 
perform related functions in connection with existing projects; manage, 
operate, and dispose its retained assets: Provided, further. That its 
regulatory arm, the MWSS-Regulatory Office, shall be fully absorbed by the 
Water Regulatory Commission created under this Act;
(b) The Laguna Lake Development Authority (LLDA), whose mandate, powers 
and functions are defined under Republic Act No. 4850 otherwise known as 
"An Act Creating the Laguna Lake Development Authority, Prescribing Its 
Powers, Functions and Duties, Providing Funds Therefor, and for Other 
Purposes", as amended, shall be transferred from DENR and attached to the 
Department: Provided, That the power to set rates and fees for the use of 
the lake waters and its tributaries for all beneficial purposes under Section 
4-B of Republic Act No. 4850, and the corresponding personnel, funds and 
appropriations, records, equipment, and property thereof shall be transferred 
to the Water Regulatory Commission: Provided, further: That the rates fees 
set by the WRC shall no longer be subject to the approval of the President of 
the Philippines. The LLDA shall continue to serve as the lake management 
and development authority similar to a multi-stakeholder river basin 
organization and shall ensure the implementation of the Laguna Lake Master 
Plan, which shall be updated by the Department to ensure alignment with 
the NWRMFP;
(c) The National Irrigation Administration (NIA), whose mandates, powers and 
functions are defined under Republic Act No. 3601, otherwise known as "An
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Act Granting the National Irrigation Administration", as amended, is hereby 
transferred to the Department; and
(d) Any other agency performing water resources management, conservation, 
and protection functions may be transferred to the Department as the 
President deems necessary.
The Secretary shall be the ex-officio Chairperson of the Governing Boards of the 
aforementioned government-owned and controlled corporations to be attached under 
the Department. In case existing laws, rules and regulations provide for a specific 
process in appointing the agency's Chairperson, the Secretary of Water Resources shall 
serve as Co-Chairperson.
Sec. 10. Organization. - The Department shall be composed of the Office of 
the Secretary, and the various bureaus and services, and regional offices. The Office of 
the Secretary shall house the Office of the Department Secretary, the Office of the 
Undersecretaries, the Office of the Assistant Secretaries, and their immediate support 
staff.
Sec. 11. Secretary of the Department of Water Resources. - The authority 
and responsibility for the exercise of the mandate of the Department and for the 
discharge of its powers and functions shall be vested in the Secretary of the 
Department, hereinafter referred to as the Secretary, who shall be appointed by the 
President, subject to confirmation by the Commission on Appointments. The Secretary 
shall:
(a) Provide executive direction, supervision, and control over the entire 
operations of the Department and exercise supervision over its attached 
agency for program and policy coordination;
(b) Advise the President on the promulgation of executive or administrative 
orders, and other issuances and on the formulation of necessary regulatory 
or legislative proposals on matters pertaining to the management of water 
resources, water supply, sanitation, and septage services;
(c) Establish the policies and standards for the effective, efficient, and 
economical operation of the Department pursuant to the President's 
guidelines;
(d) Advise the President on the status of water management and supply, 
recommend to the President the declaration of a state calamity in areas 
affected by water supply, and submit proposals to restore normalcy in the 
affected areas;
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(e) Promulgate rules and regulations necessary to carry out the objectives, 
policies and functions of the Department;
(f) Designate and appoint officers and employees of the Department, excluding 
the Undersecretaries, Assistant Secretaries, and Regionai and Assistant 
Regional Directors, in accordance with the civil service iaws, ruies 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 offidai, agent, empioyee, 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 16 
appropriate, in accordance with existing laws;
(k) Act as the ex-officio Chairperson of the governing board of the agencies 
attached to the Department; and
(l) Perform such other duties and responsibilities as may be provided by law.
Sec. 12. The Offices of the Secretary and Undersecretaries. - The Office
of the Secretary shall be composed of the Secretary and immediate staff. The 
Secretary shail be assisted by not more than three (3) Undersecretaries and three (3) 
Assistant Secretaries, who shall all be appointed by the President upon the 
recommendation of the Secretary.
The Secretary is hereby authorized to delineate and assign the respective 
functionai areas of responsibility of the Undersecretaries and Assistant Secretaries: 
Provided, that such responsibility shall be with respect to the mandate and objectives 
of the Department: Provided further, That no Undersecretary shall be assigned 
primarily to administrative responsibilities.
Sec. 13. Qualifications of the Department Secretary, Undersecretaries, 
and Assistant Secretaries. -
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(a) No person shall be appointed Secretary, Undersecretary, or Assistant 
Secretary unless he or she is of good moral character, of proven integrity 
and competence in public administration, and has a minimum of seven (7) 
years of experience in the administration of water, sewerage, sanitation, 
irrigation, flood control, or drainage programs, preferably in a public 
agency;
(b) At least one (1) of the Undersecretaries and at least one (1) of the Assistant 
Secretaries shall be career officers;
(c) No officer, external auditor, accountant, or legal counsel of any private 
company or enterprises primarily engaged in the water industry shall be 
eligible for appointment as Secretary within two (2) years from retirement, 
resignation, or separation therefrom.
Sec. 14. The Water Resources Adjudication Board. - There is hereby 
created a Water Resources Adjudication Board, hereafter referred to as the Board, 
under the Office of the Secretary. The water resources ailocation and regulation 
functions of the National Water Resources Board are hereby transferred to the Board, 
which shall supervise the effective appropriation and reguiation of the water resources 
in the country in accordance with Presidential Decree No. 1067. The Board shall 
exercise quasi-judicial powers granted to it under this Act.
Sec. 15. Composition. - The Board shali be composed of a Department 
Undersecretary as Chairperson and three (3) representatives from stakeholders as 
members, who shall all be designated by the Secretary.
There is hereby created a Resource Allocation Office, hereinafter referred to as 
the Office, which shall serve as Secretariat to the Board and shall exercise the following 
functions in order to provide technical support to the Board towards the effective 
regulation of the country's water resources.
Sec. 16. Functions of the Board. - The Board shall perform the following 
functions:
(a) Promulgate rules and regulations for the expioitation and optimum utilization 
of water resources, in accordance with Presidentiai Decree No. 1067 and 
other existing laws, including the imposition on water appropriators of such 
fees or charges by the Department;
(b) Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Research All;
(c) Review and decide on requests for permits to extract or utilize the country's 
water resources and grant the corresponding water rights, upon
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recommendation of the Office in accordance with Presidential Decree No. 
1067: Provided, That the water rights are exercised within five (5) years of 
granting of such rights: Provided, further. That applicants for water permits 
shall submit proof of land ownership of, or right to use the property where 
the water source is located: Provided, finality. That, if the applicant is 
currently using the water source being applied for domestic or municipal 
purposes upon the effectivity of this Act, such applicant may submit such 
proof of prior use of possession of said property in lieu of ownership or right 
to use;
(d) Exercise original jurisdiction over decisions in cases involving the following:
(i) All disputes relating to the appropriation, utilization, exploitation, 
development, control, conservation, and protection of waters;
(ii) Violations and disputes on raw water fees; and
(iii) Violations and disputes involving water permits, administrative allocation 
of water resources, and transfer of water rights;
(e) Issue subpoena duces tecum and subpoena ad testificandum)
(f) Cite any person or party in contempt for refusal to appear, testify or comply 
with the lawful orders of the Board in relation to any matter subject to its 
investigation;
(g) Hear, receive evidence, and decide on cases falling within its jurisdiction;
(h) Impose the appropriate sanctions, including revocation of water permits, over 
violations committed by appropriators after due notice and hearing in 
accordance with Presidential Decree No. 1067 and other existing laws, rules 
and regulations as weli as future rules and regulations which the Board shall 
promulgate;
(i) Review, update, and revise all fees, charges, and penalties imposed on all 
water appropriators as stated under Chapter VII and VIII of Presidential 
Decree No. 1067, upon recommendation by the Secretariat, and based on 
scientific and evidence-based studies;
(j) Promulgate its own rules and procedures; and
(k) Exercise such other powers as may be necessary to carry out its duties and 
responsibilities under this law.
Sec. 17 Resource Allocation Office. - The office shall perform the following 
functions:
(a) Advise the board on all matters relating to resource allocation and regulations;
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(b) Formulate rules and regulation for the exploitation and optimum utilization of 
surface water, groundwater, and seawater extraction and use, for the approval 
of the Board, and for implementation by the Resource Allocation Office, including 
the processes for the application of water permits, in accordance with 
Presidential Decree No. 1067 and other existing laws;
(c) Process applications of rights to utilize water resources for the appropriate, 
optimal and sustainable use of surface and ground water, for the approval of the 
Board or its Executive Director, as may be delegated by the Board;
(d) Upon approval by the Board, issue water permits granted to water appropriators;
(e) Monitor performance and conduct audits on water rights grantees including, 
among others, review of compliance by grantees with the terms of the permits 
granted;
(f) Investigate, motu proprio or upon complaint, violations of the water rights and 
Presidential Decree No. 1067;
(g) In the case of violations and conflicts between and among users, file the 
necessary cases for the decision of the Board;
(h) Enforce the decisions promulgated by the Board, and as may be delegated by 
the Board;
(i) Coordinate with other relevant units of the Department regarding the generation, 
updating, managing, and sharing of water data;
(j) Respond to consumer complaints, and ensure the adequate promotion of 
consumer interests; and
(k) Perform such other related functions and activities which are necessary for the 
effective regulation of water-related services.
The Office shall be headed by an Executive Director and shall be assisted by one
(l) Deputy Executive Director.
Sec. 18. Orders and Decisions. - Every order or decision rendered by the 
Board shall be in writing and shall state clearly and distinctly the facts and the law on 
which it is based. The Board shall decide each case or application within thirty (30) 
days following its formal submission for resolution. All decisions and final orders in the 
adjudication of contested cases or applications shall be published and made available 
for public inspection.
Sec. 19. Appeais Procedure and Prohibition Against Injunction. -
(a) The orders, rulings, and decisions of the Board shall become final and 
executory after fifteen (15) days from receipt of such order, ruling, or
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decision, unless, prior to the lapse of this period, an appeal was made with 
the Secretary of Water Resources;
(b) All decisions where the penalty imposed is a fine shall be immediately 
executory, except upon the filing of a bond equivalent to the fine imposed 
or as may be fixed by the Board;
(c) Except for the Supreme Court, no temporary restraining order, preliminary 
injunction, or preliminary mandatory injunction may be issued by any court to 
restrain any proceeding before, or the implementation or execution of any 
order, ruling, or decision of the Board.
Sec. 20. Bureaus and Services. - The Department shall establish, operate, and 
maintain the Bureaus and Services under it such as, but not limited to:
(a) The Local Water Service Providers Bureau shall provide technical assistance 
and personnel training for the creation, application for the socialized credit 
program, and operation of local water service providers, and shall effect 
system integration, joint investment and operation, district annexation and 
de-annexation, whenever economically warranted, in accordance with Section 
50 of Presidential Decree No. 198, as amended by Section of Presidential 
Decree No. 768;
(b) The Bureau of Flood Control and Drainage shall plan and design, in 
coordination with the DPWH and other relevant government agencies, flood 
control and drainage structures and facilities in accordance with technicai 
standards, guidelines and manuals, and provide technical assistance to 
other agencies, LGUs, and other stakeholders;
(c) The Planning and Policy Service shall formulate strategies and priorities for 
water resources management and provide the Department with the 
capability to undertake water infrastructure development planning and 
programming;
(d) The Data Management Service shall develop, manage and maintain the 
management information system and knowledge systems of the 
Department, including the processing of water-related data;
(e) The Administrative and Human Resource Service shall provide the 
Department with services relating to human resources development, 
personnel, records, facilities maintenance, medical and dental, security and 
property and procurement services, in accordance with civil service laws, 
rules, and regulations;
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(f) The Legal and Legislative Service shall provide the Department with services 
on legal affairs such as, but not limited to, contract preparation and review, 
legal and legislative research, complaints and investigation on employees, 
legal counselling and other matters of law;
(g) The Comptrollership and Financial Management Service shall provide the 
Department with coordinated services relating to financial systems and 
procedures, budget, cash, accounting and ail financial housekeeping 
matters;
(h) Internal Audit Service shall regularly conduct a comprehensive audit of 
various Department activities;
(i) The Public Affairs Service shall enhance government relations with all 
stakeholders including the media and shall ensure that stakeholders and 
marginalized sectors shall be consulted and can take active part in all 
aspects of water resources development and management activities.
The Bureaus and Services of the Department shall be headed by a Director who 
shall be responsible for efficiently and effectively carrying out the functions of the 
Bureau concerned. Each Director shall be assisted by one (1) Assistant Director.
Sec. 21. The Water Resources Regional Offices. - Water Resources 
Regional Offices, herein after referred to as the Regional Offices, shall be organized 
per water resources region and shall be responsible for implementing the mandates, 
powers, and duties of the Department at the field level, except for policy making 
which will be vested solely in the Department.
The Department shall establish the water resources regions which shall be 
grouped together according to the hydrological boundaries, physiographic features, and 
homogeneity in climate, whether or not they straddle different LCDs.
The Regional Offices shall have, within their respective water resources region, 
the following functions:
(a) Formulate or update and coordinate the river basin master plans for river 
basins within its jurisdictions consistent with the NWRMP;
(b) Advocate and strongly support the creation and functioning of multi 
stakeholder River Basin Organizations (RBOs) and serve as the secretariat of 
the said RBOs;
(c) Undertake and evaluate the planning, design, and work supervision 
functions of the Department for the water infrastructures within the region, 
and recommend the necessary water infrastructures therein;
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(d) Ensure the implementation of laws, policies, programs, rules, and regulations 
regarding the abovementioned infrastructure as well as public and private 
physical structures;
(e) Provide technical assistance related to the water-related functions of other 
agencies within the region, especially the local government;
(0 Coordinate with other departments, LGUs, agencies, institutions and 
organizations within the region in the planning and implementation of the 
river basin master plans;
(g) Conduct continuing consultations with the local communities, take 
appropriate measures to make the services of the Department responsive to 
the Central Office, and recommend such appropriate actions as may be 
necessary; and
(h) Perform such functions and activities, as may be mandated by law, which 
are necessary for the effective performance of the abovementioned 
objectives.
Each regional office shall be headed by a Regional Director who shall be 
responsible for efficiently and effectively carrying out the duties and responsibilities of 
the office. The Regional Director shall be assisted by one (1) Assistant Regional 
Director. The Regional Directors and Assistant Regional Directors shall be appointed by 
the President.
The Department shall retain existing Project Management Offices as may be 
required, which shall be under the supervision and control of the appropriate Regional 
Director, unless otherwise determined by the Secretary for reasons of supra-regional 
scope, magnitude, and multi-functional coverage.
Sec. 22. Structure and Staffing Pattern. - Subject to the approval of the 
Department of Budget and Management (DBM), the Secretary shall determine the 
organizational structure and create new divisions or units as may be necessary, and 
appoint officers and employees of the Department in accordance with the civil service 
laws, rules and regulations. The remuneration structure of the position in the staffing 
pattern shall strictly conform to Republic Act No. 11466, otherwise known as the 
"Salary Standardization Law of 2019", as amended.
CHAPTER III
SOCIALIZED CREDIT FOR LOCAL WATER SERVICE PROVIDERS
Sec. 23. Socialized Credit Program. - Socialized credit shall be made 
available, through the Land Bank of the Philippines (LBP), for capital expenditures
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other related activities and ancillary services: Provided, That the loans shall be 
available to water service providers duly registered with the Department: Provided, 
further. That no loan shall be granted for the purpose of funding operational costs or 
expenses.
Sec. 24. Committee on the Socialized Credit Program. - The Committee 
on the Socialized Credit Program (SCP), hereinafter referred to as the Committee, is 
hereby created. The Committee shall be composed of a representative of LBP as 
Chairperson and a representative of the Department as Vice-Chairperson, both of 
which should hold at least a director position, and four (4) additional members which 
shall be equally shared between the Department and LBP, who shall possess the 
necessary training and experience necessary for the Committee. The Committee shall 
directly report to the Secretary of the Department.
The Committee shall exercise the following functions:
(a) Recommend the lending policies such as, but not limited to, the criteria of 
eligible borrowers, eligible loan purpose, interest rate, fees and charges, 
collateral, guarantee, insurance, and other forms of security, and other terms 
and conditions of the credit facility;
(b) Review the policies, and procedures, and formulate policies for the SCP;
(c) Monitor the process and performance of the SCP;
(d) Monitor the fund disbursements;
(e) Act on issues or concerns relative to the implementation of SCP;
(f) Conduct SCP performance evaluation; and
(g) Exchange credit information with LBP, LWUA, and other relevant agencies.
The SCP shall prioritize the following target beneficiaries:
(a) Water Districts and LGU-run utilities in the Missionary Water Area;
(b) Water Districts with low credit rating; and
(c) Other priority Water Districts or eligible projects of the Water District 
to be identified by the Committee.
Generally, local water service providers with existing Public-Private Partnership 
Projects including joint venture arrangements are not eligible to the SCP.
All recommendations of the Committee shall be jointly approved by the 
Secretary and the Board of the LBP: Provided, That the existing rules, regulations, and
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policies of LBP shall govern all implementation activities of the SCP, such as but not 
limited to, credit and background investigation and loan documentation, evaluation, 
award, negotiation, collection, and restructuring: Provided, further. That the LBP and 
the Department shall exchange relevant information to assess the eligibility of the 
water service providers to be a recipient of a grant or subsidy. Relevant information 
may include, but is not limited to, credit standing, existing loan obligations, and 
compliance with previous or existing loan covenants.
The IRR shall provide other functions of the Committee that are necessary for 
the effective implementation of the SCP, including the creation of sub-committees, 
their composition and delegated functions.
Other Government Financial Institutions, such as, but not limited to. 
Development Bank of the Philippines may provide a similar SCP for water service 
providers: Provided, That these other GFIs shall submit monitoring reports to the 
Department thru the Committee.
Sec. 25. Support Program for Local Water Service Providers. - The
Department, the Department of Finance, and the Department of Budget and 
Management shall issue guidelines in the disbursement of any grant, from any 
sources, and subsidy from the National Government: Provided, That the Department 
shall be the implementing agency for this purpose. Provided, further. That all income 
derived from the lending activities shall be recorded as LBP's income.
CHAPTER IV
THE NATIONAL WATER SECTOR POLICY COUNCIL 
Sec. 26. Creation of the National Water Sector Policy Councii. - There is 
hereby established a National Water Sector Policy Council (NWSPC), hereinafter 
referred to as the Council, which shall exercise policymaking, coordination, 
harmonization, integration, supervision, monitoring and evaluation functions with 
regard to water, land, subsurface, air, and other natural resources. The Council shall 
be composed of the following members:
(a) Secretary of the Department of Water Resources as Chairperson;
(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),
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(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 the 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 decisionmaking 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.
CHAPTER V
INTERDEPARTMENTAL RELATIONS AND INSTITUTIONAL ARRANGEMENTS
OF THE DWR
Sec. 28. Interface and Institutional Arrangements And With Other 
Agencies. -
(a) The Department of Environment and National Resources (DENR) 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
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standards and targets, as well as the compliance of licensees with mandated 
standards;
(c) The Department of Energy (DOE) and the National Power Corporation (NPC) 
shall continue to have primary authority and responsibility for setting up and 
running hydropower plants: Provided, That all hydropower plant development 
plans shall be consistent with the NWRMP;
(d) The Department shall coordinate with the Department of Agriculture (DA) to 
promote agricultural development that reduces sources of long-term pollution 
for surface water and groundwater, and agricultural and industrial economic 
development that employs water efficiency, water recycling or reuse and the 
appropriate treatment of wastewater: Provided, That the Department shall 
coordinate with the DA and its Bureau of Soils and Water Management 
(BSWM) regarding the establishment of protocols for management of all 
water-related data being collected by the DA, as well as the outputs of 
research and studies by BSWM which may serve as input to policy 
formulation by the Department;
(e) The Department shall coordinate with the Department of Public Works and 
Highways (DPWH) in setting the policies and preparing the master plans for 
bulk water transmission, pipe networks, and related water delivery 
infrastructures as well as flood control and drainage management, and other 
related projects under the DPWH: Provided, That the DPWH shall continue to 
have primary responsibility in the construction and implementation of water 
delivery infrastructures and flood control projects: Provided, further. That 
flood management plans are aligned with the NWRMP and flood waters be 
considered and harnessed as potential water source: Provided, finality. 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
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(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 deveiopment 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 Deveiopment 
Council, Disaster Risk Reduction and Management Councii, and Ministry of 
Environment, Natural Resources and Energy, regarding the preparation of 
master plans of river basins that overlap with the inland waters within the 
BARMM's jurisdiction, and ensure the alignment of these plans with the 
NWRMP, Bangsamoro Deveiopment Plan, and other related regional plans of 
BARMM;
(k) The Department shall coordinate with the Department of Human Settiements 
and Urban Development in planning, monitoring and enforcing integrated 
land use and water resources management in the Comprehensive Land Use 
Deveiopment Plans and Zoning Ordinances of the LGUs to ensure, among 
others, the protection of water sources and that water availabiiity is factored 
in proposed land use development plans and projects; and
(l) The Department shall coordinate with relevant government agencies, 
including LGUs, with respect to development projects and to ensure cross 
cutting collaboration between and among all water subsectors and facilitate 
inter-agency subsector coordination, strategic development, planning, 
monitoring and provision of technicai, institutionai and financial capacity 
building support to their different stakeholders at the water subsector level.
CHAPTER VI
WATER REGULATORY COMMISSION
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Sec. 29. Establishment. - There is hereby created and established an 
independent, quasi-judicial regulatory body to be known as the Water Regulatory 
Commission, hereinafter referred to as the Commission. The Commission shall have a 
Board of Commissioners, and shall be vested with powers and functions, as conferred 
and set forth hereunder.
Sec. 30. The Central and Regulatory Units. - The Regulatory Units of the 
Commission shall be composed of the Regional Regulatory Units and the Central 
Regulatory Unit.
The economic regulatory units and functions of the MWSS, NWRB, and LWUA 
are hereby transferred to the Commission, and shall collectively comprise its Central 
Regulatory Unit for Water Supply, Sanitation and Sewerage Services that: (a) provide 
services to more than one province; and (b) are owned, operated, or maintained by 
Metro Manila concessionaires.
The Regional Regulatory Units shall be established by the Commission in 
accordance with the rules, regulations, guidelines, and standards that the Commission 
shall issue, and as provided in this Act.
Sec. 31. Powets and Functions of the Commission. - The overall authority 
and powers of the Commission shall cover and apply to all service providers, whether 
private or public, providing or intending to provide water supply, including suppliers to 
subdivisions, bulk water suppliers, and other providers for sewerage, and septage 
treatment and disposal services for domestic, residential, institutional, industrial or 
commercial use.
The Commission shall exercise the following powers and functions:
(a) Issue and promulgate rules, regulations and guidelines as may be necessary to 
implement and enforce its powers and functions under this Act;
(b) Issue licenses authorizing the operation of water supply, sanitation, and 
sewerage services in any specified area or areas within the Philippines;
(c) Issue rules and regulations on terms and conditions prescribing minimum and 
mandatory terms for concession agreements, joint venture agreements, 
management agreements, service contracts or other contractual arrangements 
that may be entered into by government entities including local water utilities, 
LGUs, private sector entities, or other water service providers for the provision 
of water, sanitation, or sewerage services, such as, but not limited to the (i) the 
term, scope and total cost of the activity, which may be subdivided into phases; 
(ii) committed contributions and corresponding performance security 
requirements in accordance with any agreed phased implementation of the
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activity; and (iii) cost recovery schemes and percentage of the parties' share in 
the profits and losses, among others;
(d) Require the review or approval of contracts or agreements that may impact on 
the tariff and rates of service provision entered into by service providers upon 
petition or motu proprio when public interest so dictates;
(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 PCC's exercise of authority and jurisdiction to establish 
rules and enforce regulations to monitor, investigate, provide remedies for, and 
deliberate on cases involving any market power abuse or anti-competitive or 
discriminatory act or behavior by or against any participant in the water supply, 
sanitation, and sewerage sector. Without prejudice to the actions that the 
Philippine Competition Commission, pursuant to Republic Act No. 10667, may 
undertake on its own, the Water Regulatory Commission may be directed by the 
Philippine Competition Commission, upon finding that a market participant has
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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 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;
(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
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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 as 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 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
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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, finally. That in no case shall any 
member serve for more than seven (7) years in the Commission.
(c) The Commission shall meet as often as may be necessary on such day or 
days as the Chairperson may fix. The presence of at least three (3) members 
of the Commission shall constitute a quorum, which shall be necessary for the 
transaction of any business. The affirmative vote of majority of the members 
of the Commission where a quorum is present shall be necessary for the 
adoption of any order, resolution, decisions, or other act of the Commission in 
the exercise of its quasi-judicial functions: Provided, That in promulgating 
rules, regulations, guidelines and in the exercise of its quasi-legislative 
functions, an affirmative vote of three (3) members shall be required.
(d) The Chairperson of the Commission shall exercise general executive control 
and supervision of the Commission and its members, staff and personnel, 
agents, and representatives. Within three (3) months from the creation of the 
Commission and the appointment of all members of the Commission, the 
Chairperson shall submit for the approval by the President of the Philippines 
the new organizational structure and personnel positions necessary to carry 
out the powers and functions of the Commission, subject to the review and 
approval of the DBM. The personnel positions of the Commission shall be 
filled by regular appointments in accordance with civil service laws, rules, 
and regulations.
(e) Members of the Commission shall enjoy security of tenure and shall not be 
suspended or removed from office except for just cause as specified by law.
(f) The Chairperson and members of the Commission or any of their relatives 
within the fourth civil degree of consanguinity or affinity, legitimate or
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common law, shall be prohibited from holding any interest whatsoever, 
either as investor, stockholder, officer or director, in any company or entity 
engaged in provision of water supply and distribution, septage management 
and sewerage services and must, therefore, divest through sale or legal 
disposition of any and all interests in the water sector upon assumption to 
office.
Sec. 33. Secretariat of the Commission. - The Commission shall establish a 
Secretariat which shall provide the Commission with technical and support services 
such as, but not limited to the following:
(a) Provide the necessary technical inputs and secretariat support to the 
Commission to facilitate the conduct of its functions;
(b) Coordinate with, monitor, and assess the activities of the Regulatory Units 
to ensure proper implementation of the rules, regulations, and guidelines 
promulgated by the Commission;
(c) Maintain a database on the water supply, sanitation, and sewerage 
subsector; and
(d) Coordinate with other relevant agencies of the national or local government 
on any matter relating to water supply, sanitation, and sewerage.
Sec. 34. The Commission Secretariat. - The Executive Director shall head 
the Commission Secretariat, keep and maintain the official records, and report of the 
proceedings of the Commission, and administer oaths in all matters falling within the 
jurisdiction of the Commission.
The Commission shall appoint, fix the compensation, and determine the status, 
qualifications, and duties of the Executive Director and the Secretariat staff subject to 
civil service laws, rules, and regulations. The Executive Director shall have at least ten 
(10) years of experience in the field of law, business, commerce, finance, accounting 
or public administration, water or utility economics, management, physical or 
engineering services, and other related services. The members of the technical staff, 
except those performing purely clerical functions, shall possess at least a Bachelor's 
Degree in any of the following lines of specialization: law, public administration, 
economics, finance, engineering, accounting, or management.
The Executive Director shall be responsible for the effective implementation of 
the policies, plans, programs, rules, regulations, and directives of the Commission; 
coordinate and supervise the activities of the different operating units under the 
Commission; and perform such functions as may be assigned by the Chairperson and 
other members of the Commission.
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Sec. 35. Enhancement of Technical Competence. - The Commission shall 
establish rigorous training programs for its staff for the purpose of enhancing the 
technical competence of the Commission in the following areas: evaluation of technical 
performance and monitoring compliance with service and performance standards, 
performance-based rate-setting reform, environmental standards, and such other 
areas as will enable the Commission to adequately perform its duties and functions.
Sec. 36. Compensation and Other Emoluments. - The compensation of the 
members of the Commission and its staff shall be exempted from the coverage of 
Republic Act. No. 11466, otherwise known as the "Salary Standardization Law of 2019", 
as amended. For this purpose, the schedule of compensation of the Commission shall 
be submitted for approval of the President of the Philippines. The compensation 
schedule of the Commission shall be implemented within six (6) months from the 
effectivity of this Act and maybe upgraded by the President of the Philippines as the 
need arises: Provided, That in no case shall the compensation of the Commission and 
its staff be upgraded more than once a year: Provided, further. That pertinent civil 
service laws, rules, and regulations shall be applicable to the Commission.
The Chairperson and members of the Commission shall initially be entitled to 
the same salaries, allowances and benefits as those of the Presiding Justice and 
Associate Justices of the Court of Appeals, respectively.
CHAPTER VII
REGISTRATION AND LICENSING
Sec. 37. Registration and Licensing of AH Water Supply, Sanitation, and 
Sewerage Services. - All water supply, sanitation, and sewerage service providers, 
including bulk water suppliers and those providing services to subdivisions and other 
service providers, shall register with the Commission and, subject to its rules, 
guidelines, procedures and other issuances of the Commission, obtain a license to 
operate from the appropriate regulatory units: Provided, That the Commission shall 
act on the application for the issuance or the conversion of such licenses and renewals 
thereof within the maximum period of one (1) year as provided under this Act or by 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient 
Government Service Delivery Act of 2018".
The Commission shall also ensure that the grant and revocation of licenses are 
carried out fairly, transparently, and without discrimination. Issuances of the 
Commission shall specify, among others, the qualifications, requirements and
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procedure for the grant and revocation of licenses including the standards and 
performance targets that shall continuously be complied with to keep the licenses valid.
The Commission shall specify the requirements and procedure for existing 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience 
and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by 
LWUA, to convert their existing certificates into licenses to operate.
All local water utilities, existing water service providers, or holders of CPCN or 
CoC shall be duly prioritized in the issuance of the licenses to operate over the areas 
where they currently operate or as may be covered by their franchises. The submission 
of the CPC, CPCN, provisional authority, or the CoC shall be sufficient basis for the 
issuance of the new and converted or updated licenses to operate required and 
contemplated under this Act. To ensure continuity of service, the Commission shall 
complete the issuance of such converted or updated licenses not later than six (6) 
months from the effectivity of the implementing rules and regulations issued by the 
Commission pursuant to this Act.
Unless otherwise provided in this Act or by the Commission, no public water 
supply, sanitation, and sewerage service provider shall commence or conduct the 
business of providing water supply, sewerage, and sanitation services without first 
obtaining a license.
Concession agreements and other contracts for water supply provision and water 
sanitation and treatment services currently existing shall remain valid and enforceable 
unless otherwise terminated, after due notice and hearing for reasons provided in the 
existing terms and conditions under the concession or service agreement or contract, or 
invalidated by the Commission, after due notice and hearing, where national security, 
national emergency, or public interest so dictates.
Sec. 38. Conditions of License. - The Commission may impose such 
conditions in the issued license, as it may deem necessary, such as, but not limited to:
(a) Tariffs, rates, and charges that may be imposed from its customers or 
consumers;
(b) Term fixing the duration of the privilege;
(c) Grounds for modification, suspension, or cancellation of the license;
(d) Minimum technical performance and service level standards, such as but not 
limited to: (i) water pressure; (ii) minimum flow rates; (iii) connections; (iv) 
sewerage discharge, billing, and metering requirements, and (v) sanctions for 
failure to comply with the standards set;
(e) Expansion targets and service level improvements over time;
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(0 Restrictions or conditions for transferability of the business or controlling interest 
in the business;
(g) Reportorial requirements and obligations of the grantee; and
(h) Submission to annual performance audit by the Commission or its duiy 
authorized representative.
Sec. 39. Rights and Duties of Licensees. -
(a) Any person granted a license under this Act or with existing rights under 
concession agreements and related agreements shall have the obligation to 
ensure that licensed activities are conducted to further public interest and, in 
particular:
(i) Foster the maintenance and development of efficient, coordinated, and viabie 
operation of their licensed activities;
(ii) 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;
(iii) Compiy with drinking water quaiity requirements and standards that may be 
established by the Commission, Department, and DOH; and
(iv) 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 iicense, has the right to acquire or iease 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 iicense, 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 iicensee for the water 
supplied or sanitation services provided, or for acts of piiferage pursuant to 
Sections 8, 9, 10, and 11 of Repubiic Act No. 8041, otherwise known as the 
"Water Crisis Act of 1995";
(d) Any iicense issued under this Act shall contain provisions designed to ensure 
that licensees:
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(i) Publish the Tariff and other charges approved by and the terms and 
conditions imposed by the Commission for the provision of water supply, 
sanitation, and sewerage services;
(ii) Prepare, within three (3) months from the issuance of a license, in 
consultation with its customers, a customer service code specifying the 
manner and procedure for:
(a) Metering, billing, and collection of the licensee's approved tariff and other 
charges;
(b) Disconnection or suspension of service in case of non-payment of tariffs 
and other charges, or acts of pilferage; and
(c) Recommendation and recovery of arrears in tariffs and other charges.
(iii) Maintain financial accounts in accordance with the manner and procedure 
specified in the license and as may be required by the Commission; and
(iv) Maintain and, upon request by anyone during regular office hours, promptly 
make available for scrutiny and inspection such data, statistics and other 
information, as may be required by the Commission.
Sec. 40. Setting Tariffs, Rates and Other Charges. - The Commission shall 
establish tariffs, rates and other charges, which are fair and reasonable, and ensure 
environmental sustainability, economic viability, and a fair return on investments.
Service providers may apply for the setting of tariffs, rates, and charges based on 
and consistent with a scientific and evidence-based rate-setting methodology that the 
Commission shall, after due consultation, define and publish, taking into account the 
following, among others:
(a) Reasonable and prudent capital and recurrent costs of providing the service 
including a reasonable rate of return on capital;
(b) Efficiency of the service;
(c) Incentives for enhancement of efficiency;
(d) Capacity to pay of consumers;
(e) Equity considerations;
(f) Environmental sustainability;
(g) Administrative simplicity;
(h) In cases involving valid and subsisting concession agreements prior to the 
enactment of this Act, the methodology provided under the concession 
agreement;
(i) To the fullest extent practicable, the terms and conditions of the tariffs, rates or 
other price-setting mechanisms set forth in any concession agreement, joint
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venture agreement or other similar agreement for the provision of water or 
sanitation services by an existing service provider.
Tariffs, rates, and charges set by the Regulatory Units shall be presumed valid and 
reasonable unless invalidated by the Commission, after due notice and hearing, acting 
on a protest or contest duly filed with the Commission to ensure continuity of service, 
application for setting of tariffs, rates and other charges shall be decided within a non­
extendible period of ninety (90) days from the date of filing thereof, and the failure of 
the Commission to act on any such applications shall result in a provisional approval: 
Provided, That in no case shall proceedings on any applications for the setting of tariffs, 
rates and other charges exceed to a total period of one hundred twenty (120) days 
reckoned from the date of filing of the application.
Sec. 41. Direct Access. - Fifty-one percent (51%) of the registered water 
consumers in a service area, municipality, city or province may petition for direct access 
to water from any water service provider subject to concurrence by and reasonable 
compensation to the service provider and approval by the Commission. If the petition 
for direct access from any water service provider is approved by the Commission, the 
new water service provider shall reimburse the existing service provider for, as 
applicable, either the book value or the market value as determined by an independent 
appraiser accredited by the Commission, whichever is higher, of the water source, 
water supply, or water distribution or transmission facilities, pipelines and other 
equipment which shall be transferred to or utilized by the new water service provider. 
The Commission shall promulgate the implementing rules and procedures for this mode 
of service, which shall include, among others, financial and technical capability of the 
new service provider.
Sec. 42. Innovative Schemes to Improve Efficiency and Management of 
Systems. - The Commission shall promote innovative schemes such as the 
consolidation or integration of water supply, sanitation, and sewerage services, or 
providers in the same service area, where it shall result in improved efficiency, service 
expansion and lower costs.
To this end, the Commission shall establish and issue such rules and guidelines 
as may be necessary to (a) create performance-based and time-bound incentives to 
encourage efficiency and service expansion; (b) establish the standards and targets that 
service providers are required to meet; and (c) define the fines and penalties that shall 
be imposed for failure to meet such standards and targets.
CHAPTER VIII
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PROCEEDINGS BEFORE THE COMMISSION 
Sec. 43. Proceedings Before the Commission. - For the purpose of any 
investigation, inquiry, or proceeding, the Commission shall:
(a) Issue subpoena duces tecum and subpoena ad testificandum)
(b) Appoint hearing officers to hear and receive evidence on behalf of the 
Commission;
(c) Cite any person or party for contempt for refusal to appear, testify or comply 
with an order of the Commission on any matter that is the subject of 
investigation, inquiry or proceeding before the Commission.
Sec. 44. Orders and Decisions of the Commission. - Any order, resolution, 
or decision of the Commission shall be promulgated promptly, expeditiously, 
reasonably, and in writing, and shall state clearly and distinctly the facts and law on 
which it is based. The Commission shall publish and make available for public 
inspection, ail decisions and final orders in the adjudication of contested cases or 
applications.
Sec. 45. Appeals Procedure. - The orders, rulings, and decisions of the 
Commission are final and executory unless appealed to the Court of Appeals within 
fifteen (15) days from receipt of notice of such order, ruling or decision: Provided, 
That orders, rulings, and decisions of the Commission approving tariffs, shall be 
immediately executory and may be suspended only upon appeal and filing of a bond, 
in an amount to be fixed by the Commission, to answer for damages occasioned by 
the suspension or stay of execution of such orders, rulings, and decisions.
Sec. 46. Prohibition Against Injunctions. - Except for the Supreme Court, 
no temporary restraining order, preliminary injunction, or preliminary mandatory 
injunction may be issued by any court to restrain any proceeding before, or the 
implementation or execution of any order, ruling, or decision of the Commission.
CHAPTER IX
TRANSITORY PROVISIONS
Sec. 47. Transition Period. - The Department shall, by virtue of this Act be 
subrogated to all the rights and assume all the functions of the government agencies 
and units whose powers and functions have been subsumed, absorbed, transferred or 
attached to the Department. The Commission shall also, by virtue of this Act, be 
subrogated to all the rights, and assume all the functions, of the Water Utilities Division 
of the NWRB, the regulatory offices of MWSS and LWUA, and all other government
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agencies and units whose powers and functions have been transferred to the 
Commission in accordance with the civil service laws, rules, and regulations.
The transfer of powers and functions to the Department or the Commission of 
the concerned agencies as herein provided for shall be deemed completed within six (6) 
months after the effectivity of this Act.
All agencies transferred, subsumed and attached to the Department or the 
Commission shall continue to function under their present mandates until the six 
month transition period mandated under this Act shall have lapsed. The transfer of 
powers and functions shall include all applicable funds, personnel, records, property and 
equipment, as may be necessary. The heads of the affected agencies shall continue to 
serve until replaced.
All rights and functions of the affected agencies are hereby transferred to and 
assumed by the Department or the Commission, and shall be acted upon in 
accordance with the rules and regulations of the Commission on Audit and other 
pertinent laws, rules, and regulations.
Sec. 48. Absorption or Separation from Service of Empioyees of the 
Subrogated Agencies. - The current employees of all government agencies and units 
whose powers and functions have been transferred to, absorbed or subsumed by the 
Department or Commission shall enjoy security of tenure, in accordance with their 
staffing pattern and the selection process as prescribed under Republic Act No. 6656 
or the "Government Reorganization Law".
Employees opting to be separated from the service as a consequence of the 
consolidation and reconstitution under the provisions of this Act, shall, within one (1) 
month from their separation or phase out from the service, receive separation benefits 
in accordance with existing laws and those who are qualified to retire shall be allowed 
to retire and be entitled to all benefits under existing retirement laws, subject to 
existing rules and regulations of the Commission on Audit.
CHAPTER X 
FINAL PROVISIONS
Sec. 49. Appiicability of Ease of Doing Business Law. - The prescribed 
processing time provided under Section (b) of Republic Act No. 11032 shall be 
applicable to all agencies and LGUs covered under this Act particularly on accessing 
government services.
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Sec. 50. Appropriations. - The amount necessary for the initial
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implementation of this Act shall be charged against the current year's appropriations
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of the agencies, entities, divisions, sections or units subsumed or transferred to the
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Department. Thereafter, such amount shall be included in the annual General
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Appropriations Act.
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Sec. 51. Implementing Rules and Regulations. - Upon the effectivity of this
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Act, the Department and the Commission, as may be applicable, as well as DEPDev,
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DBM, DENR, CSC, and the National Commission on Indigenous Peoples in consultation
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with concerned government agencies shall promulgate the implementing rules and
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regulations (IRR) of the Department and the Commission necessary for the effective
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implementation of this Act within one hundred eighty (180) days after its effectivity.
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Sec. 52. Separability Clause. - If any reason, any portion or provision of this
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thereby shall continue to be in full force and effect.
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Sec. 53. Repealing Clause. -
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(a) The following provisions are hereby repealed:
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(i) Section 3 (h) and Section 12 on the fixing of water rates and sanitation
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service fees. Section 3 (n) on regulation of waterworks and deep wells, and
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Section 3 (p) on the regulation of waterworks and sanitation systems in
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privately owned subdivisions of Republic Act No. 6234;
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(ii) Section 62 on regulation and Section on rate review of Presidential Decree
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No. 198 otherwise known as the "Provincial Water Utilities Act of 1973", as
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amended by Letter of Instruction No. 700 -"Providing Measures To Control
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And Regulate Increase In Water Rates", Letter of Instruction No. 744 -
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"Relative To Reliable Water Supply At Reasonable Rates In The Countryside",
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Executive Order No. 124-A, series of 1987 - "Reorganization Act of the
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Ministry of Public Works and Highways", and Executive Order No. 123, 30
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January 1987 - "Reorganization Act of Ministry of Social Services and
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Development"; and
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(iii) Executive Order No. 22, series of 2023, creating the Water Resources
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Management Office of the DENR; and
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(v) Executive Order No. 22, series of 2023, creating the Water Resources
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Management Office of the DENR; and
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(vi)Section 154, Article V, Chapter I, Title One, Book II of Republic Act No.
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7160 Otherwise known as the "Local Government Code of 1991", as
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amended, and its implementing rules and regulations on the power of the
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LGUs to fix the rates of water utilities owned, operated and maintained by 
them within their jurisdiction.
(b) All other laws, presidential decrees, executive orders, presidential 
proclamations, rules and regulations, or parts thereof which are inconsistent with 
the provisions of this Act are hereby repealed or amended accordingly.
Sec. 54. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. Approved, sought.
Approved^
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