Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE KRISTINE SINGSON MEEHAN 
AN ACT 
ESTABLISHING 
THE 
NATIONAL 
FRAMEWORK 
FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND 
THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, 
POWERS AND FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR 
EXPLANATORY NOTE 
This measure supports the House leadership in its effort at aligning with the administration’s 
objective of ensuring the provision of safe, adequate, affordable, and sustainable water supply and 
improved sanitation services, while maintaining the protection, preservation, and revival of the quality 
of the country’s water resources and ecological balance. In order to do this, it is imperative to ensure 
and accelerate universal access to water supply and sanitation services, and to encourage responsible 
private sector participation. In addition, there is also a dire need to start establishing necessary 
infrastructure which would effectively support and innovate solutions aimed at addressing the problems 
on climate change.  
The United Nations has always recognized that access to safe and potable drinking water is a 
basic right. If we do not act on it as early as now, water scarcity, as predicted, will become a substantial 
problem in the foreseeable future. To void this predicament, we must begin with effective and 
coordinated administration and management of the country’s water resources. At present, there are over 
30 government units and agencies, both at the national and local levels, which implement different 
projects and policies, mostly independent from one another. This inevitably results in confusion, thus, 
preventing systematic creation and implementation of solutions to rectify the situation. Indeed, there is 
an urgent need for an integrated and coordinated planning and implementation of programs and projects 
that would synchronize sustainable and science-based management of the country’s water resources. It 
is thus proposed that a Department of Water Resources and a Water Regulatory Commission be created 
to ensure that Filipinos will be accorded the fundamental human right to water. 
A similar measure was filed in the 18th Congress by Representative Estrellita Suansing. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
August 15, 2022
3:52 pm
3610


Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE KRISTINE SINGSON MEEHAN 
AN ACT 
ESTABLISHING 
THE 
NATIONAL 
FRAMEWORK 
FOR WATER RESOURCE 
MANAGEMENT AND CREATING THE DEPARTMENT OF WATER RESOURCES AND 
THE WATER REGULATORY COMMISSION, DEFINING THEIR MANDATES, 
POWERS AND FUNCTIONS, AND APPROPRIATINGS FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “National Water Act”. 
SEC. 2. Declaration of Policy. – Access to water is a basic human right. All water belongs to 
the State which shall govern its development and utilization for the people. It is hereby declared 
the policy of the State to ensure the provision of safe, adequate, affordable, and sustainable 
water supply and improved sanitation services, while maintaining the protection, preservation, 
and revival of the quality of the country’s water resources and ecological balance. 
In pursuit of this policy, this Act shall have the principal objective of ensuring and 
accelerating universal access to water supply and sanitation services, in a regulatory regime 
that encourages responsible private sector participation, and shall foster and prioritize the 
establishment of infrastructure and public works that adopt innovative solutions and 
international best practices to address the challenges of climate change. Further, all water and 
water treatment infrastructure projects are hereby declared as projects imbued with national 
interest. 
SEC. 3. Definition of Terms. – As used in this Act: 
(a) Bulk water supplier refers to any entity, natural or juridical, whether public or
private, supplying or intending to supply large quantities of raw or treated water to buyers who 
will use these for their own consumption, such as industrial companies, or for retail distribution 
to consumers such as water service providers or real estate developers managing their own 
distribution network. 
(b) Environmental services refer to qualitative functions of natural non-produced assets
3610


of land, water, and air, including related ecosystems, and their biota, and which may be 
categorized into three basic types: (a) disposal services which reflect the functions of the natural 
environment as an absorptive sink for residuals; (b) productive services which reflect the 
economic functions of providing natural resource inputs and space for production and 
consumption, and (c) consumer or consumption services which provide for physiological as 
well as recreational and related needs of human beings. 
(c) Flood Control refers to methods, acts, and protocols to be observed in order to
prevent and reduce the detrimental and catastrophic effects of flood waters which include 
sediment-laden or turbid flows, and hyper-concentrated flows or debris flows. 
(d) Flood Risk Management (FRM) refers to such acts of defining and determining the
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of incurring 
loss of both life and property due to flood waters. Flood risk management consists of a cycle 
of prevention, mitigation, adaptation, preparedness and early warning, and response and 
recovery. The elements of FRM include: integrating land-use planning and coastal zone 
management into water management; adopting a holistic approach so that FRM is part of wider 
risk or multi-hazard management of earthquakes, landslides, and storm surges; managing risk 
and uncertainty as a whole so it not only mitigates hydrological uncertainties but also social, 
economic and political uncertainties on account of human behavior and the cultural dimensions 
of FRM. 
(e) Gender Equality refers to the principle asserting the equality of men and women
and their right to enjoy equal conditions realizing their full human potential to contribute to 
and benefit from the results of development, and with the State recognizing that all human 
beings are free and equal in dignity and rights. 
(f) Infrastructure and public works refer only to wholly or primarily water-related
projects and does not include projects that do not fall within the purview of the objectives, 
power and duties of the Department of Water Resources created under this Act. 
(g) Integrated Water Resource Management (IWRM) refers to a systematic,
collaborative, and multi-stakeholder process which promotes the coordinated development and 
management of water, land, and related resources within geophysical boundaries in order to 
maximize the resultant economic and social welfare in an equitable manner, and without 
compromising the sustainability of vital ecosystems. 
(h) Levels of water supply refer to communal sources of water described according to
location and size of the recipient human settlement as follows: 
(1) Level I or the point source is a protected well or a developed spring with an
outlet but without any distribution system, generally adaptable to rural and
upland areas where houses are thinly scattered, and is a facility which usually
serves an average of 15 households.
(2) Level II or the communal faucet system or stand posts is a system composed of
a water source, a reservoir, a piped distribution network, and communal faucets
where one faucet serves 4 to 6 households and is generally suitable for rural and
urban fringe areas where houses are clustered densely to justify a simple piped
system.


 
(3) Level III or the waterworks system or individual house connections is a system 
with a water source, a reservoir, a piped distribution network and household 
taps, suitable for densely populated urban areas. 
 
(i) License refers to the Water Supply and/or Sanitation Services Operating License that 
the Water Regulatory Commission is authorized to grant and issue to service providers. 
 
(j) Licensee refers to a service provider to whom a license is granted or issued by the 
Water Regulatory Commission. 
 
(k) Missionary Water Services refer to water supply or services to areas that have no 
existing safewater supply and services due to geographic limitation or absence of economic 
and market viability. 
 
(l) National Water Resources Management Plan (NWRMP) refers to a policy document 
that contains a framework to guide the development and management of all the water resources 
in the Philippines, the general strategies and work to be pursued to ensure the sustainability of 
the resource towards water security, and top-level direction on the utilization of existing water 
resources in line with national development plans, policies, and programs in accordance with 
the IWRM framework. The NWRMP shall also include a water infrastructure development 
program for all waters of the country as well as provide general guidance on how this shall be 
supported within an integrated financing framework that can draw from public, private, and 
international development funding sources. 
 
(m) Net Waste Load refers to the difference of the initial waste load of the abstracted 
water and the waste load of the final effluent discharge of an industry. 
 
(n) Regulatory Units refer to the offices established under Section 20 of this Act which 
issue licenses authorizing the operation of Water Supply and Sanitation Services, and provide, 
review, determine, fix, and approve water and sewerage tariffs, rates, and charges that licensees 
may impose. 
 
(o) River basin refers to an area of land drained by a stream or body of fixed water and 
its tributaries which have a common outlet for surface run-off. 
 
(p) River Basin Organization (RBO) refers to multi-stakeholder organizations which 
plan, coordinate, and monitor activities within a river basin cluster. 
 
(q) Sanitation refers to the provision of facilities and services for the safe management 
of human excreta, from toilet to containment, and storage and treatment onsite or conveyance, 
treatment and eventual safe end use or disposal, and includes the safe management of solid 
waste and animal waste. 
 
(r) Sediment management refers to control of sediment erosion and deposition in rivers, 
reservoirs, and coastal zones through non-structural and structural measures and control works. 
 
(s) Sustainable Development Goals (SDGs) also known as the 17 Global Goals refer to 
the universal call to action to end poverty, protect the planet and ensure that all people enjoy 
peace and prosperity by 2030 adopted by all United Nations Member States in 2015. 
 


 
(t) Septage is the liquid and solid material pumped from a septic tank, cesspool, or other 
primary treatment source. 
 
(u) Septage Management refers to the provision of proper collection, treatment, and 
disposal of septage. 
 
(v) Service Area refers to the area covered by the water distribution system, sewerage, 
and /or septage management services. 
 
(w) Service Provider refers to any entity, natural or juridical, whether private or public, 
providing or intending to provide levels II & III water supply, including bulk water suppliers, 
sewerage, septage treatment, and disposal services for domestic, residential, industrial, or 
commercial use. 
 
(x) Sewage refers to water borne human or animal wastes, excluding oil or oil waste, 
removed from residences, buildings, institutions, and industrial and commercial establishments 
together with such groundwater, surface water and storm waters as may be present including 
such waste from vessels, offshore structures, other receptacles intended to receive or retain 
waste or other places or the combination thereof. 
 
(y) Sewerage refers to any system or network of pipelines, ditches, channels or conduits 
including pumping stations, lift stations and force mains, service connections including other 
infrastructure, devices, or appliances appurtenant thereto, which include the collection, 
transport, pumping and treatment of sewage to a point of disposal. 
 
(z) Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose of sewage 
 
(aa) Social inclusion refers to the process of improving the terms for disadvantaged 
individuals and groups to take part in society. 
 
(bb) Tariffs refer to such amounts which may be charged by licensees for their water 
supply and sanitation services based on principles, standards, and guidelines established by the 
Department of Water Resources. 
 
(cc) Water Demand Management (WDM) refers to any method, whether technical, 
economic, administrative, financial, or social that will accomplish one or more of the 
following: 
 
(1) Reduce the quantity or quality of water required to accomplish a specific task; 
 
(2) adjust the nature of the task or the way it is undertaken so that it can be 
accomplished with less water or with lower quality water; 
 
(3) Reduce the loss in quantity or quality of water as it flows from source, through 
use, to disposal; 
 
(4) Shift the timing of use from peak to off-peak periods; and 
 
(5) Increase the ability of the water system to continue to serve society during times 


when water is in short supply. 
(dd) Water Districts refer to government-owned and controlled corporations organized
under Presidential Decree No. 198, as amended, created primarily to acquire, install, operate, 
maintain, and improve water supply and distribution systems for domestic, industrial and 
municipal uses of residents and to provide, maintain and operate wastewater collection, 
treatment and disposal facilities within the boundaries of the district. 
(ee) Water pollution refers to any alteration of the physical, chemical, biological, or 
radiological properties of a body of water resulting in the impairment of its purity or quality. 
(ff) Water Resource refers to water under the ground or groundwater, water above the 
ground such as surface water, run-offs, floods, stormwater and urban drainage, treated 
wastewater, water in the atmosphere or rain water, and the waters of the sea within the territorial 
jurisdiction of the Philippines. 
(gg) Water Resources Regions refer to the contiguous clusters of river basins which are 
grouped together according to the hydrological boundaries, physiographic features, and 
homogeneity in climate, whether or not they straddle different local government units, for 
administrative purposes under the Department of Water Resources. 
(hh) Water Service Provider (WSP) refers to the water district, any Local Government 
Unit (LGU)-run water utility, Barangay Waterworks and Sanitation Association (BWSA), 
Rural Waterworks Sanitation Association (RWSA), cooperative and private sector entity that 
provides water supply services to any given area. 
(ii) Water supply service refers to any activity comprising Levels I, II and III water
supply including bulk suppliers, suppliers to subdivisions, and other water service providers. 
CHAPTER II 
THE DEPARTMENT OF WATER RESOURCES 
SEC. 4. The Department of Water Resources – There is hereby created and established the 
Department of Water Resources, hereinafter referred to as the Department. 
SEC. 5. Mandate of the Department. –The Department shall be the primary agency 
responsible for the comprehensive and integrated identification and mapping of all water 
resources, planning, policy formulation, and management of the ownership, appropriation, 
utilization, exploitation, development, and protection of water resources in the Philippines to 
ensure the optimal use thereof for domestic and municipal water supply, sanitation, irrigation, 
hydropower, industry, navigation, flood management, and recreation except fisheries or 
aquaculture. The Department shall also be the primary agency responsible for the planning and 
policy formulation towards the attainment of universal access to safe, adequate, affordable, and 


 
sustainable water supply, and improved sanitation services for all Filipinos. The Department 
shall be the primary national agency to enforce Presidential Decree No. 1067 otherwise known 
as The Water Code of the Philippines and Republic Act No. 9275, otherwise known as the 
Philippine Clean Water Act of 2004. 
 
The Department shall exercise the powers and functions of the defunct Pasig River 
Rehabilitation Commission created under Executive Order No. 54 Series of 1999 and abolished 
under Executive Order No. 93 Series of 2019, specifically the following roles that were 
transferred to the Manila Bay Task Force and DENR through the latter EO: 
 
(a) Update and take the lead in the overall implementation of the Pasig River 
Rehabilitation Master Plan, which shall harness the Pasig River’s potential for transportation, 
recreation and tourism purposes while undertaking the rehabilitation and restoration of its 
maritime life; and 
 
(b) Ensure that the easements provided for in the Civil Code and other relevant laws 
are enforced, especially in all the esteros and waterways that drain into the Pasig River as well 
as abate the dumping of untreated industrial wastewater and sewage into the river, including 
all acts and omissions in violation of Presidential Decree (PD) No. 984, s. 1976, as amended 
entitled, Providing For The Revision Of Republic Act No. 3931, Commonly Known As The 
Pollution Control Law, And For Other Purposes, PD No. 274, s. 1973 entitled, Pertaining To 
The Preservation, Beautification, Improvement And Gainful Utilization Of The Pasig River, 
Providing For The Regulation And Control Of Pollution Of The River And Its Banks In Order 
To Enhance Its Development, Thereby Maximizing Its Utilization For Socio-Economic 
Purposes, and other related laws. 
 
SEC. 6. Guiding Principles. –In the pursuit of its mandate, the Department shall be guided by 
the following key principles: 
 
(a) The concept of good water governance for water security and sufficiency shall be 
adopted across all levels of governance by stakeholders such as the national government, local 
government, non-government organizations, private organizations, individuals, even global 
societal actors, and in various sectors such as water supply, irrigation, fisheries, hydropower, 
navigation, ecosystem services, flood management, climate change, and recreation. It shall 
entail publicly transparent, socially accountable, and multi-stakeholder participatory water 
policy planning, management, and decision-making processes. 
 
(b) Access to safe water supply and improved sanitation is a human right that needs to 
be fulfilled and protected. 
 
(c) Integrated Water Resource Management (IWRM) shall be adopted as the basic 
framework which is the coordinated development and management of water, land, and related 
resources within hydrological boundaries to optimize economic and social welfare without 
compromising the sustainability of vital ecosystems. The IWRM Framework shall include an 
enabling environment that utilizes proper policies, legal instruments, and institutional 
frameworks for effective implementation, participatory and collaborative water policy and 
management decisions, and management instruments for efficient use of updated and accurate 
data, science-based decision support systems, proper information, education, communication 
(IEC) programs, assessment and allocation tools, or regulatory functions. It shall observe the 
mutual accountability mechanism among stakeholders at the national, regional, and global 


 
levels reinforcing multi-stakeholder decision-making following a framework with specific, 
measurable, attainable, relevant, and timely actions. 
 
(d) Each river basin has its unique characteristics relating to the physical, socio-cultural, 
and other aspects, and water management shall be performed at river-basin level, involving all 
the stakeholders at that particular river basin. 
 
(e) Integrated and accurate data collection and analysis and the use of scientific decision 
support systems shall be undertaken in water resources management including flood modeling 
and warning systems that are essential for an effective, efficient, and sustainable water 
resources management system. 
 
(f) The development of water resources shall include strategies for the mitigation of 
water-related hazards and climate change adaptation. 
 
(g) Water resources and services should be provided where they are intended and most 
needed so that water is fairly and sustainably managed. 
 
(h) The proper operation and maintenance of waterworks systems resulting in the 
uninterrupted and adequate supply and distribution of potable water for domestic and other 
purposes, and the proper operation and maintenance of sewerage systems which are essential 
services to public health and safety, are to be ensured at all times. The State shall therefore 
supervise and control the establishment, operation, and maintenance of such systems. 
 
SEC 7. Objectives of the Department. – The Department shall: 
 
(a) Promote and adopt water demand management as a national policy to ensure that 
water is optimized, that water efficiency and conservation become a way of life, that the 
recycling and reuse of water and treated wastewater are widely practiced, that water is properly 
priced to encourage efficient use and conservation and that rainwater, flood waters, and run- 
offs are captured or harvested, stored and treated for future use; 
 
(b) Prioritize and seek the immediate attainment of universal access to safe, adequate, 
affordable and sustainable water supply and improved sanitation services for all Filipinos in a 
manner consistent with the protection, preservation, and revival of the quality of the country’s 
water resources, and to adopt all needed measures to advance the right of the people to a 
balanced and healthful ecology in accord with the rhythm and harmony of nature. 
 
(c) Strengthen and coordinate integrated water resources management planning and 
policy making to ensure sustainable and fair allocation and efficient use of water resources 
among competing uses and users; 
 
(d) Ensure that integrated water resources management is strongly coordinated with 
land use and coastal and multi-hazard planning and management; 
 
(e) Develop sustainably, and manage water sources and water resources toward water 
security, taking into consideration water, land, and related resources aimed at increasing water 
dependability for different uses, optimizing economic benefits and social welfare without 
compromising the sustainability of vital environmental systems; 
 


 
(f) Strengthen and coordinate policy making and planning towards ensuring the 
availability of water for food security and energy security, as well as towards the protection of 
communities and environments against flood and other water induced hazards including 
sediment hazards; 
 
(g) Ensure that the strategy for water resources development and conservation is 
participatory, and that planners, policymakers and users including community members are 
involved at all levels; 
 
(h) Develop a standardized pricing framework for water use that accounts for 
environmental externalities; and 
 
(i) Ensure that all sources of water, including surface water, groundwater, rainwater and 
floodwater are identified, mapped, monitored, conserved and managed for productive use and 
the resulting wastewater is managed properly, reused, and responsibly disposed of following 
approved environmental standards. 
 
SEC.8. Powers and Functions of the Department. – The Department shall have the following 
powers and functions: 
 
I. Policymaking and Planning 
 
(a) Ensure that Integrated Water Resources Management (IWRM) is adopted as the 
strategic framework for water management policy making 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 entities 
to meet the goals and objectives for water supply and sanitation, water quality, irrigation, 
hydropower, flood control, stormwater utilization, and urban drainage. Such policies shall, 
among other guidelines, integrate the issues of water and sanitation, food security, energy, 
environment and flood control, and climate change; 
 
(c) Formulate and develop policies to promote universal access to safe, adequate, 
affordable, and sustainable water supply, and improved sanitation services for all Filipinos; 
 
(d) Regularly update, every five years or as deemed necessary by the Department, and 
in consultation with other agencies and stakeholders, the NWRMP following the IWRM 
framework and integrate therein a national land use plan; 
 
(e) Undertake river basin survey, inventory and appraisal of water and related resources, 
and develop comprehensive basin-wide plans of storage, retardation, and control to maximize 
conservation and multipurpose use of water in the basin; 
 
(f) Conduct continuing hydrological and hydrometeorological surveys and studies of 
the country’s renewable water supply, and establish, operate, and maintain observation station 
networks with a view towards formulating long-term policies to balance the sustainability and 
optimal multiple use of water resources, defining the hydrologic boundaries of basins of the 
existing water supply sources and developing or updating and implementing countrywide 
comprehensive basin-wide master plans; 
 


 
(g) Strengthen and coordinate policy making and planning for flood management, 
integrated with stormwater or urban drainage and appropriate retention or retarding basins in 
order to harvest and reuse water, and to plan against, prevent, and minimize the detrimental 
and catastrophic effects of flooding; 
 
(h) Assist and provide the National Economic and Development Authority (NEDA) 
with the required data and input from the water sector in the formulation of the country’s short- 
term and long-term strategic development plans and actions, and recommend to the NEDA 
Board the adoption of general policies and guidelines for water resources development; 
 
(i) Review, approve, and provide oversight over all water-related development plans 
and programs of any agency within the context of the NWRMP, and overall national plans and 
programs; 
 
(j) Develop and implement, in coordination with other relevant agencies, effective 
codes, standards, benchmarks, and reasonable guidelines to ensure the safety of all public and 
private water structures in the country, and assure efficiency and proper quality in the 
construction of water, sanitation, irrigation, hydropower, flood control and drainage 
infrastructure; 
 
(k) Ensure that gender equality, social inclusion, environmental protection, climate 
resiliency, and disaster risk reduction are integrated into any water resource management 
planning, policy making, and the design and construction of water infrastructure; 
 
(l) Ensure that the planning and design of water infrastructure considers the highest 
efficiency and most appropriate technology and quality, in accordance with national 
development objectives; 
 
(m) Review existing guidelines appropriate for private sector participation in the water 
sector and submit recommendations to the Public-Private Partnership (PPP) Center of NEDA 
and other concerned agencies to promote and enable more PPPs in the sector; 
 
(n) Build a central repository of water data and effect inter-sectoral, inter-agency, and 
inter-departmental coordination on all aspects of data gathering and management for water 
resources development planning and compel the submission of statistics and data on water 
utilization with the aim of operationalizing the integrated approach to water resources 
management; 
 
(o) Ensure the effective implementation of all the provisions of Republic Act No. 9275, 
Presidential Decree No. 1067, and Sections 9, 10, 11, 12 & 13, Chapter II of Presidential Decree 
No. 856, otherwise known as the Code on Sanitation of the Philippines; 
 
(p) Promote Philippine participation in information sharing and education on best 
practices in support of international efforts to achieve universal access to safe water and 
improved sanitation; and the integration of water, energy, environment and food security; and 
 
(q) Issue and promulgate rules, regulations and guidelines as may be necessary to 
implement and enforce its powers and functions under this Act. 
 
II. Resource Regulation 


 
 
(a) Manage and conserve the country’s water resources to ensure the optimal use thereof 
for domestic water supply, sanitation, irrigation, hydropower, navigation, flood control, and 
recreation purposes, and enhance and maintain water quality, conserve watersheds, control 
water pollution, and restore the environment, without compromising the natural ecosystem 
functions and services; 
 
(b) Regulate and control the utilization, abstraction, diversion and development of water 
resources, taking in consideration their equitable distribution among competing demands and 
determine the standards of beneficial and priority uses of water in times of crisis and national 
emergencies; 
 
(c) Formulate, promulgate, and enforce rules and regulations for the development and 
optimum use of water resources and its administration and management, including coherent 
water protocols, operating rules of all existing and future water infrastructure; general criteria, 
methods and standards for basic data collection and project identification, formulation and 
planning, and appropriate sanctions to be imposed for non-compliance; 
 
(d) Regularly review regulations prescribed by any government agency pertaining to 
water use, exploitation, development, and conservation or protection of waters, water 
resources, and watershed or basin areas with respect to this Act; 
 
(e) Impose fees or charges, as may be deemed necessary for water resources 
conservation and protection, such as: 
 
(1) Polluter’s Fee, which shall be based on the net waste load depending on the 
wastewater charge formula pursuant to Republic Act No. 9275; 
 
(2) Raw water price, which shall take into account, among others, the scarcity of 
water; and 
 
(3) Appropriate payment structures for environmental services: 
 
(f) Deputize LGUs to collect the national fees or charges for resource regulation within 
their respective jurisdictions; 
 
(g) Collect, regularly update, monitor, and analyze water resources data including 
climatology, hydrological and other water-related data and ensure that such data is easily 
accessible by relevant and authorized users; 
 
(h) Establish, operate, and maintain observation station networks and a centralized 
water resources data center for the scientific survey and appraisal of surface and groundwater 
potentials of the country, and determine the annual renewable water available per water 
resources region; 
 
(i) Maintain a database that will contain updated relevant information on water data 
which will be accessible by relevant and authorized users; 
 
(j) Develop and continuously update a computerized decision support system that 
incorporates data management systems relating to acquisition and database, model base in terms 


 
of physical design, planning and decision models, and user-friendly interface concerning 
graphical and visualization tools; 
 
(k) Conduct and promote special studies and research on water economics and other 
water resources development and management issues and concerns such as climate change, 
weather modification, flood monitoring and modeling, environmental quality, and desalination; 
and 
 
(l) Raise public awareness through information, education and communications 
programs, and build capacities for informed participation in water resources management at 
the national and river-basin level. 
 
III. Institutional Arrangement with Public Water Organizations 
 
(a) Develop guidelines including rules of partnership, between and among the 
Department, field offices of national government agencies, LGUs and other stakeholders in 
water resource management, and facilitate the establishment of multi-stakeholder river basin 
organizations (RBOs) per river basin, and strengthen and support existing RBOs and monitor 
their activities; 
 
(b) Develop materials for capacity building and training of prospective RBOs; 
 
(c) Authorize its representatives or any deputized agent to enter any property of public 
dominion with or without prior notice and consent, any private land, building or enclave, 
whether inhabited or not, for the purpose of conducting hydrologic surveys and investigations, 
including assessing and evaluating the conditions of water facilities installed, and determining 
compliance with water laws and standards; 
 
(d) Provide technical assistance to water users including farmers, communities, and 
LGUs and other water service providers (WSP) whether directly or in coordination with other 
agencies on all aspects of integrated water resources management; 
 
(e) Respond to consumer complaints, and ensure the adequate promotion of consumer 
interests; 
 
(f) Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Department; 
 
(g) Appoint, hire, and maintain adequate staff and personnel, advisers or consultants 
with suitable qualifications and experience, as necessary, subject to existing rules and 
regulations. 
 
IV. Coordination 
 
(a) Coordinate and integrate water resources development activities of the country 
within the context of national plans and policies for social and economic development; 
 
(b) Coordinate with other government agencies, universities, academe and private 
professional groups in all aspects of data gathering, the conduct of special studies and research 
on all related aspects of water resources management and development such as climate change, 
environmental quality, desalination, and the development of operating strategies, procedures, 


and protocols and accompanying computerized decision tools for major water facilities; 
(c) Coordinate with the concerned and relevant agencies engaged in flood control, flood
risk management, and drought risk management; and 
(d) Coordinate proactively with LGUs to ensure the integration of water resources
development plans into their comprehensive land use plans (CLUPs), Comprehensive 
Development Plans (CDPs) or Provincial Physical Framework and Development Plan 
(PPFDP). 
V. Other Functions
(a) Create when necessary, water resource subsidiaries, instrumentalities, and entities
to engage in water transmission, water distribution, waste water treatment and management, 
and sanitation in accordance with existing relevant laws. 
(b) Enter into contracts, joint venture agreements or understanding, public-private
partnerships, and memorandum of agreements or understanding, either domestic or foreign, 
relating to investment and financing water-related projects, under such terms and conditions as 
the Department may deem proper and reasonable subject to existing laws. 
(c) Exercise such other powers and functions necessary or incidental to the effective
administration and management of the country’s water resources. 
SEC. 9. Secretary of the Department of Water Resources. – The authority and responsibility 
for the exercise of the mandate of the Department and for the discharge of its powers and 
functions shall be vested in the Secretary of the Department, hereinafter referred to as the 
Secretary, who shall: 
(a) Advise the President on the promulgation of executive or administrative orders,
regulations, proclamations and other issuances relative to matters under the jurisdiction of the 
Department; 
(b) Establish the policies and standards for the operation of the Department pursuant to
the President’s guidelines; 
(c) Promulgate rules and regulations necessary to carry out the objectives, policies, and
functions of the Department; 
(d) Exercise supervision and control over all bureaus and offices under the Department;
(e) Supervise all attached agencies and corporations in accordance with law;
(f) Represent the Department in contracts, awards, and other similar agreements;
(g) Delegate authority for the performance of any power or function, as defined herein
to officials and employees under his direction as deemed appropriate; 
(h) Act as the Chairperson of the governing board of the attached agencies of the
Department; 


 
 
(i) Designate and appoint officers and employees of the Department, excluding the 
Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional Directors, in 
accordance with the civil service laws, rules and regulations; and 
 
(j) Perform such other duties and responsibilities as may be provided by law. 
 
SEC. 10. Office of the Secretary. – The Office of the Secretary shall be composed of the 
Secretary, Undersecretary, Assistant Secretary and the Secretary’s immediate staff. 
 
SEC. 11. Undersecretaries. – The Secretary shall be assisted by not more than five (5) 
Undersecretaries, who shall be appointed by the President upon the recommendation of the 
Secretary namely: Undersecretary for Resource Regulation and Governance, Undersecretary 
for Inland Waters and Water for Agriculture, Undersecretary for Resource Development, 
Undersecretary for Planning and Policy and Undersecretary for Missionary Water, Indigenous 
People, and Special Concerns. 
 
The Secretary is hereby authorized to delineate and assign the respective functional 
areas of responsibility of the Undersecretaries in accordance with the mandate and objectives 
of the Department: Provided, That no Undersecretary shall be assigned purely to administrative 
responsibilities. Within their respective functional areas of responsibility, the Undersecretaries 
shall: 
 
(a) Advise and assist the Secretary in the formulation and implementation of the 
policies, plans, programs and projects of the Department; 
 
(b) Supervise all the operational activities of the assigned units for which the 
Undersecretary is responsible to the Secretary; and 
 
(c) Perform such other functions deemed necessary as may be assigned or delegated by 
the Secretary to promote efficiency and effectiveness in the delivery of public services or as 
may be required by law: Provided, That the Undersecretary for Planning and Policy shall, in 
coordination with the Planning and Policy Service, be primarily responsible for advancing 
current efforts in attaining the ultimate goal of universal access to water supply and sanitation 
systems, and sustainable management of water resources under the SDGs, and the integration 
of water, energy, environment and food security. 
 
SEC. 12. Assistant Secretaries. – The Secretary shall be assisted by six (6) Assistant 
Secretaries to be appointed by the President of the Philippines upon the recommendation of the 
Secretary: one each for Planning and Policy Service, Decision Support System Service, 
Resource Regulatory Service, Comptrollership and Financial Management Service, Legal and 
Legislative Service, and Administrative and Human Resources Management Service. 
 
No person shall be appointed Secretary, Undersecretary and Assistant Secretary of the 
Department unless the person is a citizen and resident of the Philippines, of good moral 
character, of proven integrity, competence and expertise in water resource management: 
Provided, That at least one (1) of the Undersecretaries and at least two (2) of the Assistant 


 
Secretaries shall be career officers. 
 
SEC. 13. Organizational Structure. – The Department shall be composed of the 
following organizational units: 
 
(a) Department Proper. – The Department shall consist of the Office of the Secretary, 
the Offices of the Undersecretaries and Assistant Secretaries, the Internal Audit Office, the 
Public Affairs Office, the Water Pollution Adjudication Board, the Planning and Policy 
Service, Decision Support System Service, Administrative and Human Resources Service, 
Legal and Legislative Service, Comptrollership and Financial Management Service, Resource 
Regulation Service, and the Water Resources Regional Offices. 
 
(b) Attached agencies. - The Department shall exercise administrative supervision over 
the following agencies for purposes of policy and program coordination, monitoring, and 
evaluation: 
 
(1) The Local Water Utilities Administration (LWUA), whose mandate, powers, 
and functions are defined in Presidential Decree No. 198, otherwise known as 
the Public Water Utilities Act of 1973, as amended, shall be transferred from 
the Department of Public Works and Highways and attached to the Department. 
It shall continue to primarily function as a specialized lending institution for the 
promotion, development, and financing of local water utilities. In the 
implementation of its functions, the LWUA shall: 
 
(i) prescribe minimum standards and regulations in order to assure acceptable 
standards of construction materials and supplies, maintenance, operation, 
personnel training, accounting and fiscal practices for local water utilities; 
 
(ii) furnish technical assistance and personnel training programs for local water 
utilities; 
 
(iii) monitor and evaluate local water standards; and 
 
(iv) effect system integration, joint investment and operation, district annexation 
and de-annexation whenever economically warranted as amended by Sec. 
22, Presidential Decree No. 768. 
 
(2) The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate, 
powers, and functions are defined under Republic Act No. 6234, as amended 
entitled, An Act Creating The Metropolitan Waterworks And Sewerage System 
And Dissolving The National Waterworks And Sewerage Authority; And For 
And For Other Purposes, shall be transferred from the DPWH and attached to 
the Department: Provided, That the MWSS shall continue to facilitate the 
exercise by the concessionaires of their responsibility; carry out accounting and 
notification functions; monitor, report, and administer loans; perform related 
functions in connection with existing projects; manage and dispose its retained 
assets; and manage and operate the Umiray-Angat Transbasin Project. 
 
(3) The National Irrigation Administration (NIA), whose mandate, powers, and 
functions are defined under Republic Act No. 3601 as amended by Presidential 


 
Decree No. 552 and Presidential Decree No. 1702; 
 
(4) The Laguna Lake Development Authority (LLDA), whose mandate, powers and 
functions are defined under Republic Act No. 4850, as amended entitled, An Act 
Creating The Laguna Lake Development Authority, Prescribing Its Powers, 
Functions And Duties, Providing Funds Therefor, And For Other Purposes 
shall be transferred from the DENR and attached to the Department. The LLDA 
shall continue to serve as the lake management and development authority 
similar to a multi-stakeholder river basin organization and shall ensure the 
implementation of the Laguna Lake Master Plan which shall be updated by the 
Department to ensure alignment with the NWRMP. 
 
Any other agency performing water resources management, conservation and 
protection functions may be transferred to the Department as the President 
deems necessary. 
 
(c) Offices, Functions and Personnel to be Completely Subsumed under the 
Department. – The following offices with their powers, functions, personnel, applicable funds 
and appropriations, records, equipment and property shall be subsumed under the Department: 
The National Water Resources Board (NWRB) with all its divisions and sections, whose 
mandate, powers and functions are provided in Presidential Decree No. 424, as amended; The 
River Basin Control Office (RBCO) of the DENR whose mandate, powers and functions are 
provided in Executive Order No. 510 and Executive Order No. 816, as amended; The Manila 
Bay Coordinating Office (MBCO) of the DENR which was strengthened by virtue of DENR 
Administrative Order (DAO) 2011-01 to coordinate the efforts of the fourteen (14) national 
agencies covered by the Mandamus Order of the Supreme Court to rehabilitate Manila Bay; 
The Water Resources Management Division of the Bureau of Soils and Water Management of 
the Department of Agriculture (DA); The Water Supply and Sanitation Unit of the Department 
of the Interior and Local Government (DILG); and The Water Quality Management Section of 
the Environmental Management Bureau (EMB) of the DENR. 
 
(d) Functions to be Transferred to the Department. – The following functions of the 
respective agencies, bureaus, and units shall be transferred to the Department: 
 
(1) The hydrological surveys and groundwater mapping function of the Mines and 
Geosciences Bureau (MGB) of the DENR; 
 
(2) The hydrological surveys monitoring of stream flow and water data collection 
function of the Bureau of Design and Bureau of Research and Standards of the 
DPWH; 
 
(3) The protection and conservation of natural wetlands such as lakes, marshes, 
swamps of the Biodiversity Management Bureau of the DENR; and 
 
(4) The planning, programming, administration, monitoring, management of the 
National Sewerage and Septage Management Program (NSSMP) by the 
DPWH. 
 
(5) The flood management planning and sediment management function of the 
Flood Control Management Cluster of the DPWH; 
 


 
(6) The Water Resource Management Division and the water research functions of 
the Soils and Water Research Division of the Bureau of Soils and Water 
Management under the DA. All soil-related functions shall be retained under 
the Bureau which shall be renamed as the Bureau of Soils. 
 
(e) Support Services - The Department shall create the following support services: 
 
(1)  The Planning and Policy Service shall provide the Department with the 
capability to undertake water infrastructure development planning and 
programming, and shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to water resources planning; 
 
(ii) 
Assist the Undersecretary for Planning and Policy on all matters related 
to the specific functions of the position; 
 
(iii) Formulate strategies and priorities for water resources management 
and development consistent with national development objectives, and 
initiate or undertake relevant surveys for development planning; 
 
(iv) Develop and regularly update a comprehensive and integrated National 
Water Resources Management Plan and ensure its integration into 
existing land use plans; 
 
(v) 
Coordinate river-basin planning following the integrated water resources 
management framework and the river-basin approach; 
 
(vi) Formulate or update existing River Basin Master or Comprehensive Plans 
which includes all aspects of water management and development such 
as water supply and sanitation, irrigation, flood control and stormwater or 
urban drainage, drought risk management, water resource development 
systems and other public water works projects, including phasing of 
implementation; 
 
(vii) Identify, based on the river basin master plan, priority packages for water 
infrastructure development per river basin, including water supply, 
sanitation, irrigation, flood control and stormwater or urban drainage, 
drought risk management, water resource development systems and other 
public works projects, package project proposals for funding and 
prioritize project implementation and the allocation of funds and other 
resources and undertake or supervise and evaluate the conduct of 
feasibility studies and project preparation thereof; 
 
(viii) Evaluate and appraise all regional and inter-regional infrastructure water 
development plans and programs as to their feasibility and consistency 
with approved strategies and medium and long -term plans; 
 
(ix) Gather, analyze, and organize needed statistical data and information; 
 
(x) 
Provide technical assistance related to its functions to the other services, 
bureaus and the regional offices as needed; 


(xi)
Develop general criteria and standards on project investigation,
formulation, planning;
(xii) Develop guidelines and standards on social inclusion in water resources
management and ensure policies, programs and plans are compliant with
the gender and development framework of the government;
(xiii) Coordinate closely with PAGASA for rainfall and other climate data
which shall be considered in the planning for water resources
development and management and for various water infrastructure; and
(xiv) Perform such functions and activities, as may be mandated by law, which
are necessary for the effective attainment of the abovementioned
objectives.
(2) The Decision Support System Service shall provide the Department with water
resource management tools and computerized decision support system that
incorporates a data management system relating to acquisition and database and
model base in terms of physical design, planning and decision models including
services related to networking, data management, and information and
knowledge or learning management systems for administrative and non- 
technical support It shall provide the Secretary timely reports on the status of
various Department projects and activities. For this purpose, it shall exercise the
following functions:
(i)
Provide the Secretary the necessary data and processed information to aid
in policy and management decisions under the mandate of the Department;
(ii)
Publish available real-time raw water data as well as verified or validated
water data in print or electronic form using latest internet technology;
(iii)
Conduct and publish in print and/or electronic form, standard data
analysis such as basic statistical analysis, trend analysis, analysis of runs,
and cluster analysis;
(iv)
Develop and continuously update water resource management,
computerized decision support systems (DSS) that incorporate data
management systems relating to acquisition and database, model base in
terms of physical, design, planning and decision models, and user-
friendly interface such as graphical and visualization tools. The DSS is
composed of: 1) a measurement or data acquisition system; 2) information
or database management system; 3) analytical and numerical models for
design, planning, decision or evaluation purposes, and 4) a user-friendly
interface which includes graphical interface or visualization tools.
(v)
Develop and maintain specific models to include the following:
a) long-term climatologic and weather forecasting model;
b) watershed models and river-floodplain models;


 
 
c) groundwater models and coupled to surface water models; 
 
d) flood forecasting model for major rivers; 
 
e) optimization-simulation management models for watershed conservation, 
conjunctive surface and groundwater use, irrigation scheduling, normal 
and emergency operations of multi-purpose reservoirs; and 
 
f) water quality and ecological models. 
 
(vi) Develop and administer the management information system and 
knowledge systems of the Department to: 
 
a) Retrieve, process, and monitor information on all projects and activities 
in the web portal; 
 
b) Conduct and apply systems and process engineering, software 
development, software configuration management; 
 
c) Develop and manage its corporate database, unified database for water 
industry, data warehouse, other water information resources, library 
services and document management and archiving services; 
 
d) Develop and manage its Information and Communications Technology 
(ICT) infrastructure and ICT related-services including computer 
networking and voice communications services and data exchange, and 
 
e)  Manage the literacy and training services of the Department on various 
ICT and Knowledge Management (KM) tools and applications, including 
information and knowledge management. 
 
(vii) Perform such other related functions and activities which are necessary for 
the effective administration of the management information and 
knowledge systems of the Department. 
 
(3) The Administrative and Human Resource Service shall provide the Department 
with services relating to human resources development, personnel, records, 
facilities maintenance, medical and dental, security, property and procurement 
services, and shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to internal administration and 
human resources management; 
 
(ii) 
Prepare and implement an integrated personnel development plan that 
shall include provisions for merit promotions, performance evaluation, 
job rotation, incentive awards systems, and health and welfare services; 
 
(iii) Provide services related to human resource training, education and 
development including manpower, career planning and forecasting, and 
development of indigenous training materials; 


 
 
(iv) Develop, establish, and maintain an efficient and cost-effective property 
procurement system and facilities and coordinate or otherwise interface 
with relevant agencies, whether government or private, for the purpose of 
developing or upgrading the system; 
 
(v) 
Develop, establish, and maintain an efficient and effective security 
system covering, among others, personnel, physical installations, 
facilities, equipment, documents and materials including the conduct of 
security investigations; 
 
(vi) Coordinate with the appropriate government agencies for a more efficient 
conduct of administrative processes; 
 
(vii) Develop, establish, and maintain an efficient records system; 
 
(viii) Provide assistance in its area of specialization to the Department Proper, 
bureaus and regional and water district offices and, when requested, to 
the government agencies and corporations attached to the Department; 
and 
 
(ix) Perform such other related functions and activities which are necessary 
for the effective management of the resources of the Department, 
including its human resources. 
 
(4) The Legal and Legislative Research Service shall provide the Department with 
services on such legal affairs as contract letting and litigation, legal and 
legislative research, complaints and investigation, legal counselling and other 
matters of law, and shall exercise the following functions: 
 
(i) 
Advise the Secretary on all matters relating to legal and legislative affairs; 
 
(ii) 
Prepare Department contracts and legal instruments, review and interpret all 
contracts and agreements entered into by the Department and evaluate all legal 
proposals; 
 
(iii) Conduct administrative investigation and the review of administrative charges 
against officers and employees of the Department; 
 
(iv) Exercise functional jurisdiction over the legal staffs of Regional Offices; 
 
(v) 
Provide legal assistance to the Department Proper, the bureaus and regional 
offices and when requested, the attached corporations; 
 
(vi) Develop and prepare the Department’s Legislative Agenda, recommend 
presidential certification of the urgency of priority water bills, and other 
water-related legislation; 


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


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


 
organized and take active part in all aspects of water resources development and 
management activities. It shall also lead the planning and organizing of special 
events, and shall exercise the following functions: 
 
(i) Public Awareness 
 
a) Advise the Secretary on matters pertaining to public affairs; 
 
b)  Develop and supervise the implementation of comprehensible 
communications programs on relevant policies, programs and plans of 
the Department; 
 
c) Produce and supervise the dissemination of communication materials in 
line with the priorities of the Department and national government 
public information programs; 
 
d) Conduct public opinion and attitude surveys to identify the interests and 
concerns of the stakeholders of the Department; 
 
e) Establish policies on the presentation and publication of the content of 
the communication materials for dissemination to print and broadcast 
media; 
 
f) Establish and maintain linkages with the tri-media and a presence in 
social media; 
 
g) Coordinate the conduct of interviews and news conferences; 
 
h) Make public announcements on matters relating to the work and 
activities of the Department through the print and broadcast media, 
either through press releases or live interviews; 
 
i) Coordinate with various Department units, concerned government 
agencies, tri-media and other stakeholders on matters related to the 
above-enumerated functions; and 
 
j) Coordinate with the appropriate national government agencies involved 
in public information affairs. 
 
(ii) Promote Participation 
 
a) Conduct public consultations and discussions; 
 
b) Develop and disseminate relevant and appropriate materials and 
programs for public information and education, as well as advocacy 
campaign; 
 
c) Conduct seminars and workshops involving the LGUs and the general 
public on current water issues and problems; and meaningful 
participation in the Department’s policy making, planning, 


development and implementation of various programs and projects. 
(iii) Special Events
a) Coordinate the organization and promotion of special events and
water exhibits;
b) Act as the focal office for all water related events; and
c) Perform such functions and activities, as may be mandated by law,
which are necessary for the effective performance of the
abovementioned objectives.
(f) Bureaus. – The Department shall create bureaus which shall each be headed by a
Bureau Director. The Bureau Director shall be responsible for the efficient and effective 
discharge of the functions of the Bureau concerned. The Bureau Director shall be assisted by 
one (1) Assistant Director. 
(1) Bureau of Flood Control and Drainage shall plan and design flood control
and drainage structures and facilities in according with technical standards,
guidelines and manuals. For this purpose, it shall have the following duties
and responsibilities:
(i)
Formulate policy, strategies and programs on flood risk management in
the context of integrated flood management (IFM) which integrates
water, land, coastal zone and multi-hazard management. In integrating
land use planning and water management, the Director. The Bureau
Director shall be responsible for the efficient and effective discharge of
the functions of the Bureau concerned. The Bureau Director shall be
assisted by one (1) Assistant Director. (1) Bureau of Flood Control and
Drainage shall plan and design flood control and drainage Department
shall harmonize and synthesize plans to enable the sharing of
information between land-use planning and water management
authorities. In this regard, a holistic approach shall be adopted by
making the IFM a part of a wider risk or multi- hazard management
system that includes earthquakes, landslides, fires, tsunami, and other
calamities of the same gravity or nature;
(ii)
Integrate climate change and disaster risk reduction and management in
policies and plans;
(iii)
Prepare master plans of flood management and drainage in river basins
in coordination with the concerned water resources region and river
basin organizations;
(iv)
Prepare master plans for urban drainage in cities and municipalities;


 
 
(v) 
Prepare feasibility studies of recommended measures in the master 
plans; 
 
(vi) Plan and design structural measures for flood control and drainage; 
 
(vii) Implement and collaborate with concerned agencies on the formulation 
and adoption of non-structural measures for flood control and drainage; 
 
(viii) Patrol and investigate rivers, and monitor stream flows; 
 
(ix) Conduct post-disaster investigation and evaluation and damage 
assessment of flood infrastructures after extreme events; 
 
(x) 
Conduct research and development on water and sediment-related 
disasters; 
 
(xi) Develop design guidelines, criteria, and standards on flood control and 
drainage structures; 
 
(xii) Provide technical assistance to other agencies, LGUs, and other 
stakeholders; 
 
(xiii) Advise the Secretary on declaring flood control areas and 
recommended guidelines for floodplain management plans in these 
areas; and 
 
(xiv) Perform such related activities which are necessary for the effective 
performance of its functions. 
 
(2) Bureau of Water Quality Management shall supervise and exercise control 
over all aspects of water quality management to ensure the sustainability of 
the country’s water resources and the protection of the environment. It should 
take into account proper and integrated treatment of freshwater and 
wastewater within the whole process. For this purpose, the Bureau shall 
exercise the following functions: 
 
(i) 
Establish water quality guidelines for freshwater and coastal or marine 
waters as basis for classifying water bodies in the country. Specifically, 
develop water quality indices or composite metrics to measure the 
quality status and health of natural water bodies in relation to ecological 
integrity and function; 
 
(ii) 
Establish effluent standards for point discharges to receiving bodies of 
water; 
 


 
(iii) Establish internationally accepted procedures for sampling and 
analysis; 
 
(iv) Prepare an integrated water quality management framework; 
 
(v) 
Prepare the ten-year water quality management plans for each water 
quality management area as part of the River Basin Master Plans and in 
support of the NWRMP; 
 
(vi) Classify groundwater sources and prepare a national groundwater 
vulnerability map; 
 
(vii) Classify or reclassify all water bodies according to their beneficial 
usages using the established water quality guidelines established; 
 
(viii) Issue permits, clearances, and similar instruments pursuant to the Clean 
Water Act of 2004; 
 
(ix) Collect the wastewater discharge fees for all permittees; 
 
(x) 
Monitor the compliance of water discharge permittees with the effluent 
standards; 
 
(xi) Regularly monitor the water quality of major water bodies in the 
country and analyze the data to identify possible sources of pollution; 
 
(xii) Issue notices of violations and/or cease and desist orders for those found 
in violation; 
 
(xiii) File the needed cases against violators with the Water Pollution 
Adjudication Board (WPAB); 
 
(xiv) Serve as secretariat of the WPAB; and 
 
(xv) Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the above-
mentioned objectives. 
 
(3) A Water Resources Regional Office (WRRO) shall be organized per water 
resources region and shall be responsible for implementing the mandates, 
powers and duties of the Department at the field level, except for 
policymaking which will be vested solely in the Department. The formulation 
of the master plan for the nearby river basins such as the Pasig-Marikina-
Laguna Lake- Cavite, shall be the responsibility of the Department. Each 
WRRO shall perform the following duties and responsibilities: 
 


 
(i) 
Formulate or update and coordinate the river basin master plans for 
river basins within its jurisdictions ensuring consistency with the 
National Water Resources Management Framework Plan; 
 
(ii) 
 Advocate and strongly support the creation and functioning of multi- 
stakeholder river basin organizations (RBOs) and serve as the 
secretariat of the said RBOs; 
 
(iii) Undertake and evaluate the planning, design, and work supervision 
functions of the Department for the water infrastructures within the 
region; 
 
(iv) Ensure the implementation of laws, policies, programs, rules and 
regulations regarding the above-mentioned infrastructure as well as 
public and private physical structures; 
 
(v) 
Provide technical assistance related to the water-related functions of 
other agencies within the region especially the local government; 
 
(vi) Coordinate with other departments, agencies, institutions and 
organizations, especially local government units within the region in the 
planning and implementation of the river basin master plans; 
 
(vii) Conduct consultations with the local communities, take appropriate 
measures to ensure that the services of the Department are responsive, 
and recommend such appropriate actions as may be necessary; and 
 
(viii) Perform such functions and activities, as may be mandated by law, 
which are necessary for the effective performance of the above-
mentioned objectives. The Department shall retain existing Project 
Management Offices as may be required, which shall be under the 
supervision and control of the appropriate Water Resources Regional 
Office unless otherwise determined by the Secretary for reasons of 
supra- regional scope, magnitude and multi-functional coverage. 
 
Each Water Resources Regional Office shall be headed by a Water Resources 
Regional Director who shall be responsible for efficiently and effectively carrying out the 
duties and responsibilities of the Office. Towards this end, the Water Resources Regional 
Director shall exercise functional and administrative supervision over all units within the 
region and is authorized to commit resources and assign personnel to integrated regional 
water resources management, water supply and sanitation management, and flood control 
and flood risk management initiatives. The Water Resources Regional Director shall also 
perform such other related duties and responsibilities as may be assigned or delegated by the 
Secretary or as may be required by law. The Water Resources Regional Director shall be 
assisted by two (2) Assistant Water Resources Regional Office Directors who shall exercise 
supervision over (1) the planning, project design and evaluation function and (2) technical 


assistance to the River Basin Organizations within the water resources region. 
SEC. 14. Water Pollution Adjudication Board. – There is hereby created a Water Pollution 
Adjudication Board under the Office of the Secretary. The Board shall be composed of the 
Secretary as Chairperson, two (2) Undersecretaries as may be designated by the Secretary, 
the Director of Water Quality Management Bureau, and three (3) other representatives from 
other stakeholders to be designated by the Secretary as members. The Board shall assume 
the powers and functions of the National Pollution Control Commission with respect to the 
adjudication of water pollution cases under Republic Act No. 3931 entitled, An Act Creating 
The National Water And Air Pollution Control Commission, Presidential Decree 984 entitled 
Providing For The Revision Of Republic Act No. 3931, Commonly Known as the Pollution 
Control Law, And For Other Purposes, particularly with respect to Section 6 letters e, f, g, j, 
k and Republic Act No. 9275. The Bureau of Water Quality Management shall serve as the 
Secretariat of the Board. These powers and functions may be delegated to the field officers of 
the Department in accordance with rules and regulations to be promulgated by the Board. 
CHAPTER III 
INTERDEPARTMENTAL RELATIONS AND 
INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
SEC. 15. Interface and Institutional Arrangements with Other Agencies. – 
(a) The Department of Health (DOH) shall continue to have primary authority and
responsibility for setting and enforcing drinking water quality standards. The Department 
shall coordinate with the DOH in this aspect, and shall ensure consistency of standards and 
targets, as well as the compliance of permittees with mandated standards; 
(b) The Department of Environment and Natural Resources (DENR) shall continue
to have primary authority and responsibility for protecting the environment and managing 
the country’s watersheds; 
(c) The Department of Energy (DOE) and the National Power Corporation (NPC)
shall continue to have primary authority and responsibility for establishing and operating 
hydropower plants, but shall ensure that hydropower plant development plans are consistent 
with the National Water Development and Management Plan; 
(d) The Department shall coordinate with the DA to ensure agricultural development
that reduces long-term pollution for surface water and groundwater, and agricultural and 
industrial economic development that employs water efficiency, water recycling or reuse, 
and the appropriate treatment of wastewater; 
(e) The Department shall coordinate with the National Disaster Risk Reduction
Management Council (NDRRMC) to ensure that its plans and designs for flood control, flood 
risk management and drought risk management are aligned with the objectives and plans of 
the Department; 
(f) The Department shall coordinate with Climate Change Commission (CCC),


 
Philippine Atmospheric, Geophysical and Astronomical Services Administration 
(PAGASA), and National Mapping and Resource Information Authority (NAMRIA) for 
scientific studies, integrated surveys, mapping, charting, and decision support systems 
 
(g) The Department shall coordinate with the Department of Tourism (DOT) on 
recreational use of water resources; 
 
(h) The Department shall coordinate with the Philippine Reclamation Authority and 
economic zone authorities on water resources development and water requirements within 
reclamation areas and economic zones, respectively; and 
 
(i) The Department shall coordinate with relevant government agencies, including 
local government units (LGUs), with respect to development projects and shall ensure cross-
cutting collaboration between and among all water subsectors and facilitate inter-agency 
subsector coordination, strategic development, planning, monitoring and provision of 
technical, institutional and financial capacity building support to their different stakeholders 
at the water subsector level. 
 
SEC. 16. National Water Sector Policy Board. – The National Water Sector Policy Board 
(NWSPB) shall be created and shall be headed by the Secretary of the Department of Water 
Resources with the Secretary of the National Economic and Development Authority as the 
Vice-Chairperson, and the Secretaries of the DOH, DILG, DOE, DA, Department of Social 
Welfare and Development; DPWH; Department of Budget and Management (DBM); Office 
of the President, and DENR, and National Commission on Indigenous Peoples as members. 
The Department shall provide personnel to serve as Secretariat to the Board. 
 
SEC. 17. Powers and Functions of the National Water Sector Policy Board – The NWSPB 
shall perform policymaking, coordination, integration, supervision, monitoring and 
evaluation functions, and shall have the following responsibilities: 
 
(a) Approve the NWRMP which shall serve as a principal guide to water management 
efforts in the country and shall be reviewed every five (5)-years interval, or as may be deemed 
necessary, in order to ensure its relevance to the times; 
 
(b) Provide overall policy direction and recommend policies on water resources 
requiring Presidential decision; 
 
(c) Advise the President on the status of water management and supply, recommend 
to the President the declaration of a state calamity in areas affected by water supply, and 
submit proposals to restore normalcy in the affected areas; 
 
(d) Ensure a multi-stakeholder participation in the development, updating, and 
sharing of information systems as policy, planning and decision-making tools consistent with 
IWRM. 
 
SEC.18. Transfer of Rights and Obligations. – The Department shall, by virtue of this Act, 


 
be subrogated to all the rights and assume all the obligations of the government agencies and 
units whose powers and functions have been subsumed, absorbed, transferred or attached to 
the Department in accordance with the rules and regulations of the Commission on Audit, 
and the Civil Service Commission, and other applicable laws. The transfer of powers and 
functions as herein provided shall take effect within six (6) months of the effectivity of this 
Act. As such, all affected agencies, offices, units shall continue to function under their present 
mandates. 
 
CHAPTER IV 
WATER REGULATORY COMMISSION 
 
SEC.19. Water Regulatory Commission. – There is hereby created and established as an 
independent, quasi-judicial regulatory body to be known as the Water Regulatory 
Commission, hereinafter referred to as the Commission, which shall be organized within one 
hundred twenty (120) days after the effectivity of this Act. The Commission shall be placed 
under the administrative supervision of the Department as an attached agency. The 
Commission shall have a Board of Commissioners, and shall be vested with powers and 
functions, as conferred and set forth hereunder. 
 
SEC. 20. The Regulatory Units. – The regulatory units of the Commission shall be 
composed of the central regulatory unit and the regional regulatory units. The economic 
regulatory units and functions of the MWSS, NWRB, LWUA, SBMA, PEZA, and TIEZA 
are hereby transferred to the Commission, and shall collectively comprise its central 
regulatory unit for water supply and sanitation services that: (a) provide services to more 
than one province; and (b) are owned, operated and/or maintained by special economic zones 
and Metro Manila concessionaires. The regional regulatory units shall be established by the 
Commission in accordance with this Act and the rules, regulations, guidelines, and standards 
that the Commission shall issue. 
 
SEC. 21. Powers and Functions of the Commission. – The overall authority and powers of the 
Commission shall cover and apply to all service providers, whether private or public, providing 
or intending to provide levels II & III water supply, including suppliers to subdivisions and /or 
other service providers, sewerage, and/or 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) Promulgate and enforce just and reasonable technical standards, classifications 
and measurements of service; 
 
(c) Establish rules and regulations to monitor, avoid, and provide remedies for any 
market power abuse or anti-competitive or discriminatory act or behavior by or against any 
participant in the water supply and sanitation sector. Upon finding that a market participant 


 
has engaged in, or has fallen victim to such act or behavior, the Commission shall act to stop 
or redress the same. Such remedies may, without limitation, include the imposition of price 
controls, issuance of injunctions, requirement of divestment or disgorgement of excess 
profits, invalidation of contracts and imposition of fines and penalties pursuant to this Act. 
 
(d) Adopt and require that books, records, and accounts be kept and maintained in 
accordance with the prescribed uniform accounting system; 
 
(e) Fix and determine proper and adequate rates of depreciation of properties and 
equipment used in water supply and sanitation services; 
 
(f) Impose and collect annual levies determined as a percentage of gross revenue 
accruing in relation to the licensed activities, and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers and functions of the Commission; 
 
(g) Require the submission reports of finances and operations, verified under oaths 
by the owner or president and secretary of the board of the licensee; 
 
(h) Determine and require the monitoring and submission of such data, statistics and 
other information from the regulatory units and any or all licensees as may be necessary for 
the effective and efficient exercise of its duties, functions, powers and responsibilities. 
 
(i) Investigate, motu propio or upon a written complaint, any matter concerning the 
operation of the service and issues on price manipulation and anti-competitive behavior; 
 
(j) Impose penalties and fines against any licensee or against its owners, directors, 
officers, agents or representatives for any violation of this Act or of the license, order, rule 
regulation or requirement issued by the Commission; 
 
(k) Require any licensee to pay the actual expenses incurred by the Commission in 
any investigation if it shall be found that a licensee violated any provision of this Act or of 
the license, order, rule regulation or requirement issued by the Commission; 
 
(l) Advise, apprise and coordinate with other relevant agencies of the national or local 
government on any matter relating to water supply and sanitation services; 
 
(m) Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
 
(n) Appoint an interim or temporary management committee upon appeal and after 
due hearing, to ensure continuity of service in case a licensee fails to meet conditions of the 
license and the concerned Regulatory Unit fails or refuses to appoint an interim management 
committee as provided in the following section. 
 
(o) Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, 
with suitable qualifications and experience, as necessary; 


 
 
(p) Exercise original and exclusive jurisdiction over all cases contesting rates, fees, 
fines and penalties imposed by the regulatory units in the exercise of their powers, functions 
and responsibilities, as provided under this Act, and over all cases involving disputes 
between and among participants or stakeholders in the water supply and sanitation services; 
and 
 
(q) Such other incidental powers and functions as may be necessary to attain the 
objectives of this Act. 
 
SEC. 22. Powers and Functions of the Regulatory Units. – The regulatory units of the 
Commission shall have the following powers and functions: 
 
(a) Issue licenses authorizing the operation of water supply and sanitation services in 
any specified area or areas within the Philippines. 
 
(b) Impose fines, charges and other penalties upon any provider and/or its officers 
and stockholders who shall fail or refuse to register or obtain a license prior to operation or 
commencement of business, as provided hereunder. 
 
(c) Review, determine, fix, and approve, consistent with the rules, guidelines, 
procedures and methodologies which the Commission shall provide, proposed water and 
sewerage and septage management tariffs, rates and charges that licensees may impose upon 
their consumers; 
 
(d) Appraise and value property and equipment used by licensees in providing water 
supply and sanitation services. 
 
(e) Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities; 
 
(f) Respond to consumer complaints and ensure the adequate promotion of consumer 
interests and investigate motu propio price manipulation and anti-competitive behavior; 
 
(g) Investigate accidents directly or indirectly arising from or connected with the 
maintenance or operation of the service, and make such order or recommendation as the 
public interest may warrant; 
 
(h) Require the review and/or approval of contracts or agreements that may impact on 
the tariff and rates of service provision entered into by service providers upon petition or motu 
propio where in its determination public interest so dictates; 
 
(i) Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment reports; 
 
(j) Impose and collect annual levies determined as a percentage of gross revenue 


 
accruing in relation to the licensed activities, and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers, and functions of the regulator; 
 
(k) Conduct benchmarking and monitor the performance of licensees or utilities 
under their jurisdiction, and publish reports detailing the results thereof, as may be necessary 
or required by the Commission; 
 
(l) Amend, modify, suspend, or revoke any license issued by them, after due notice 
and hearing, on any of the following grounds: (1) when the facts and circumstances on the 
strength of which the license was issued have been materially misrepresented or have 
materially changed; (2) where the licensee has failed to meet or comply with terms, 
conditions, and performance targets, including but not limited to service expansion, that may 
have been set in the license; (3) where the licensee is found to be manifestly inefficient in the 
operation of or provision of water supply and sanitation services in its area; or (4) when the 
licensee thereof has violated or willfully refused to comply with any order, rule or regulation 
of the Commission or any provision of this Act; 
 
(m) Appoint an interim management committee to ensure continuity of service in 
case a licensee fails to meet the conditions of the license; and 
 
(n) Submit performance plans and reports as required by the Commission. 
 
SEC. 23. Composition of the Water Regulatory Commission. – 
 
(a) The Commission shall be a collegial body composed of five (5) full-time members 
consisting of a Chairperson and four (4) members, who shall all be appointed by the President 
of the Philippines. All members of the Commission must be citizens and residents of the 
Philippines, at least thirty five (35) years of age, and of good moral character, of recognized 
integrity and competence in the field of law, business, commerce, finance, accounting or 
public administration, water or utility economics, management, physical or engineering 
services, hydrology and other related services, with at least three (3) years of actual and 
distinguished experience in their respective fields of expertise: Provided, That out of the four 
(4) members of the Commission, at least one (1) shall be a member of the Philippine Bar 
with at least ten 
(10) years of experience in the active practice of law, and at least one (1) shall be a certified 
public accountant with at least ten (10) years of experience in active practice. 
 
(b) The term of office of each member of the Commission shall be seven (7) years: 
Provided, That among the members first appointed, the Chairperson shall serve for a period 
of seven (7) years, two (2) members shall serve for five (5) years and the other two (2) 
members shall serve for three (3) years: Provided further, That any member whose term has 
expired as specified herein shall serve as such until a successor shall have been appointed 
and qualified: Provided furthermore, That any appointment to fill a vacancy in the 
Commission arising from death, removal, retirement or resignation shall be made only for the 
unexpired term: Provided, 
finally, That in no case shall any member serve for more than seven (7) years in the 


 
Commission. 
 
(c) The Commission shall meet as often as may be necessary on such days or days as 
the Chairperson may fix. The presence of at least three (3) members of the Commission shall 
constitute a quorum, which shall be necessary for the transaction of any business. The 
affirmative vote of majority of the members of the Commission where a quorum is present 
shall be necessary for the adoption of any order, resolution, decisions, or other act of the 
Commission in the exercise of its quasi-judicial functions: Provided, That in promulgating 
rules, regulations, guidelines and in exercising its quasi-legislative functions, an affirmative 
vote of three (3) members shall be required. 
 
(d) The Chairperson of the Commission shall exercise general executive control and 
supervision over the Commission and its members, staff and personnel, agents and 
representatives. Within three (3) months from the creation of the Commission and the 
appointment of all Members of the Commission, the Chairperson shall determine and 
establish the organizational structure and plantilla positions necessary to carry out the powers 
and functions of the Commission, including those of the central and provincial regulatory 
units subject to the review and approval of the DBM. The plantilla positions of the 
Commission shall be filled by regular appointments in accordance with Civil Service laws, 
rules, and regulations. Members of the Commission shall enjoy security of tenure and shall 
not be suspended or removed from office except for just cause as specified by law. 
 
(e) The Chairperson and members of the Commission or any of their relatives within 
the fourth civil degree of consanguinity or affinity, legitimate or common law, shall be 
prohibited from holding any interest whatsoever, either as investor, stockholder, officer or 
director, in any company or entity engaged in provision of water supply and distribution, 
septage management and sewerage services and must, therefore, divest through sale or legal 
disposition of any and all interests in the water sector upon assumption to office. 
 
SEC. 24. Secretariat of the Commission. – The Commission shall establish a Secretariat 
which shall provide the Commission with technical and support services including the 
following: 
 
(a) Provide the necessary technical inputs and secretariat support to the Commission 
to facilitate the conduct of its functions; 
 
(b) Coordinate with Regulatory Units to ensure proper implementation of the rules, 
regulations and guidelines promulgated by the Commission; 
 
(c) Monitor and assess activities of the Regulatory Units vis-à-vis their respective 
annual performance plans and targets; 
 
(d) Maintain a database on the water supply and sanitation subsector; and 
 
(e) Coordinate with other relevant agencies of the national or local government on 
any matter relating to water supply and sanitation. 


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


 
(b) Term fixing the duration of the privilege. 
 
(c) Grounds for modification, suspension or cancellation of the License. 
 
(d) Minimum technical performance and service level standards. 
 
(e) Expansion targets and service level improvements over time. 
 
(f) Restrictions or conditions for transferability of the business or controlling interest 
in the business. 
 
(g) Reportorial requirements and obligations of the grantee. 
 
(h) Submission to annual performance audit by the Commission or its duly authorized 
representative(s). The Commission shall specify the requirements and procedure for existing 
holders of a Certificate of Public Convenience (CPC), Certificates of Public Convenience 
and Necessity (CPCN) issued by NWRB, or Certificate of Conformance (CoC) issued by 
LWUA, to convert their existing certificates into licenses to operate in accordance with Sec. 
27 herein. All existing providers of water supply and sanitation services without a legal and 
valid Certificate of Public Convenience, Certificate of Public Convenience and Necessity, or 
Certificate of Conformance shall register with the Commission and apply for a license within 
six (6) months from the effectivity of this Act. 
 
SEC. 29. Rights and Duties of Licensees. – 
 
(a) Any person granted a license under this Act shall have the obligation to ensure 
that licensed activities are conducted to further public interest and, in particular: 
 
(1) Foster the maintenance and development of efficient, coordinated, and viable 
operation of their licensed activities; 
 
(2) Ensure that their water supply and sanitation services are provided in a 
diligent, conscientious and workmanlike manner, in accordance with 
applicable laws rules and regulations issued by the Commission and the 
generally accepted standards and practices of the water supply and sanitation 
industry; and 
 
(3) Comply with drinking water quality requirements and standards that may be 
established by the Commission. 
 
(b) Any person granted a license under this Act shall, to the extent allowed by law 
and specified in the license, have the right to acquire or lease land, lay or repair water or 
sanitation main lines and other relevant facilities in public ways to fulfill the terms and 
conditions under the license. 
 
(c) Subject to any condition or limitation laid down in the license, a licensee may 


 
discontinue water supply and sanitation services to a customer if such customer defaults in 
the payment of fees due to the licensee for the water supplied or sanitation services provided, 
or for acts of pilferage pursuant to Sections 8, 9, 10, and 11 of Republic Act No. 8041, 
otherwise known as the Water Crisis Act of 1995. 
 
(d) Any license issued under this Act shall contain provisions designed to ensure that 
licensees: 
 
(1) Publish the Tariff and other charges approved by and the terms and conditions 
imposed by the Commission for the provision of water supply and sanitation 
services. 
 
(2) Prepare, within three (3) months from the issuance of a license, in consultation 
with its customers, a Customer Service Code specifying the manner and 
procedure for: (a) metering, billing, and collection of the licensee’s approved 
tariff and other charges, (b) disconnection or suspension of service in case of 
non-payment of tariffs and/or other charges, or acts of pilferage, and (c) 
recommendation and recovery of arrears in tariffs and other charges; 
 
(3) Maintain financial accounts in accordance with the manner and procedure 
specified in the license and as may be required by the Commission; and 
 
(4) Maintain and upon request by anyone during regular office hours, promptly 
make available for scrutiny and inspection such data, statistics and other 
information, as may be required by the Commission. 
 
SEC. 30. Setting Tariffs, Rates, and Other Charges. – Regulatory units shall establish 
tariffs, rates and other charges which are fair and reasonable, and ensure economic viability 
and a fair return on investments. Tariffs, rates and charges shall be based on and consistent 
with a rate-setting methodology that the Commission shall, after due consultation, define and 
publish, taking into account the following, among others: 
 
(a) Reasonable and prudent capital and recurrent costs of providing the service 
including a reasonable rate of return on capital; 
 
(b) Efficiency of the service; 
 
(c) Incentives for enhancement of efficiency; 
 
(d) Willingness to pay of the customers/consumers; 
 
(e) Equity considerations; and 
 
(f) Administrative simplicity. Tariffs, rates, and charges set by the regulatory units 
shall be presumed valid and reasonable unless a protest or contest is filed with the 
Commission. 


 
 
SEC.31. Direct Access. – Fifty-one (51) percent of the registered water consumers in a 
municipality, city or province may petition for direct access to water from any water service 
provider subject to concurrence by the service provider and approval by the Commission. 
The Commission shall promulgate rules and procedures for this mode of service. 
 
SEC. 32. Innovative Schemes to Improve Efficiency and Management of Systems. – The 
Commission shall promote innovative schemes such as the consolidation or integration of 
water supply and sanitation services, or providers in the same service area, where it shall result 
in improved efficiency, service expansion and lower costs. To this end, the Commission shall 
establish and issue such rules and guidelines as may be necessary to (a) create incentives to 
encourage efficiency and service expansion; (b) establish the standards and targets that 
service providers are required to meet; and (c) define the fines and penalties that shall be 
imposed for failure to meet such standards and targets. 
 
CHAPTER VI 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
 
SEC. 33. Proceedings Before the Commission. – For the purpose of any investigation, 
inquiry or proceeding, the Commission shall: 
 
(a) Issue subpoena duces tecum and subpoena ad testificandum; 
 
(b) Appoint hearing officers to hear and receive evidence on behalf of the Commission; 
 
(c) Cite any person or party for contempt for refusal to appear, testify, or comply with 
an order of the Commission on any matter that is the subject of investigation, inquiry or 
proceeding before the Commission. 
 
SEC. 34. Orders and Decisions of the Commission. – Any order, resolution, or decisions of 
the Commission shall be promulgated promptly, expeditiously, reasonably, and in writing, 
and shall state clearly and distinctly the facts and law on which it is based. The Commission 
shall publish and make available for public inspection, all decisions and final orders in the 
adjudication of contested cases or applications. 
 
SEC. 35. Appeals Procedure and Prohibition Against Injunction. – 
 
(a) The orders, rulings, and decisions of the Commission are final and executory 
unless appealed to the Court of Appeals within fifteen (15) days from receipt of notice of such 
order, ruling or decision: Provided, That orders, rulings, and decisions of the Commission 
approving tariffs, shall be immediately executory and may be suspended only upon appeal 
and filing of a bond, in an amount to be fixed by the Commission, to answer for damages 
occasioned by the suspension or stay of execution of such orders, rulings, and decisions. 
 
(b) No injunction may be issued by any court or administrative agency to restrain any 
proceeding before, or the implementation or execution of any order, ruling, or decision of 


 
the Commission, except on the basis of a question of law brought before the Supreme Court 
on certiorari. 
 
(c) Any act or decision of the Commission shall not be invalidated merely because of 
a defect or irregularity in, or in connection with, the appointment or vacancy in the Office of 
the Chairperson or any other member of the Commission. 
 
CHAPTER VII 
INTERDEPARTMENTAL RELATIONS OF THE 
COMMISSION 
 
SEC. 36. Interface with Other Sector Regulators. – 
 
(a) The DENR shall continue to exercise primary jurisdiction over programs aimed 
at protecting the environment and the quality of water sources from waste and pollution, and 
shall promulgate rules, regulations, and standards in this regard. The Department of Health 
(DOH) shall continue to exercise primary jurisdiction over the determination and 
enforcement of standards for quality drinking water and sanitation. 
 
(b) The Commission shall coordinate with the: 
 
(1) DOH to ensure that the standards and targets for quality drinking water 
and sanitation are consistently complied with; 
 
(2) LGUs for development projects relating to water supply and sanitation; and 
 
(3) Department of Public Works and Highways for flood control and harnessing 
and impounding of water. 
 
SEC. 37. Transfer of Rights and Obligations. – The Commission shall, by virtue of this Act, 
be subrogated to all the rights, and assume all the obligations, of the Water Utilities Division 
of the NWRB, the regulatory offices of MWSS and LWUA, the regulatory units of all special 
economic zones, and all other government agencies and units whose powers and functions 
have been transferred to the Commission. The transfer of powers and functions to the 
Department of the concerned agencies as herein provided for, shall be deemed completed 
within six (6) months after the effectivity of this Act. The transfer of powers and functions 
shall include all applicable funds, personnel, records, property and equipment, as may be 
necessary. The same shall apply to agencies which have been attached to the Department by 
virtue of this Act. 
 
All agencies transferred, subsumed and attached to the Department, shall continue to 
function under their present mandates until the six-month transition period mandated under 
this Act shall have lapsed. The heads of the affected agencies shall continue to serve until 
replaced. All rights and obligations of the affected agencies are hereby transferred to and 
assumed by the Commission, and shall be acted upon in accordance with the rules and 
regulations of the Commission on Audit and other pertinent laws, rules, and regulations. 


 
 
SEC. 38. Absorption or Separation from Service of Employees of the Subrogated Agencies. 
– The current employees of the Water Utilities Division of the NWRB, the regulatory offices 
of MWSS and LWUA, the regulatory units of all special economic zones, and all other 
government agencies and units whose powers and functions have been transferred to the 
Commission shall enjoy security of tenure, and shall be absorbed by the Department, in 
accordance with their staffing pattern and the selection process as prescribed under Republic 
Act No. 6656 or the Government Reorganization Law. Employees opting to be separated 
from the service as a consequence of the consolidation, and reconstitution under the 
provisions of this Act shall, within one (1) month from their separation or phase out from the 
service, receive separation benefits in accordance with existing laws, and those who are 
qualified to retire shall be allowed to retire and be entitled to all benefits under existing 
retirement laws. 
 
SEC. 39. Water Trust Fund. – There is hereby created a Water Trust Fund in the Bureau of 
Treasury. All non-tax revenues, including raw water pricing, permit fees, registration fees, 
supervision and regulation enforcement fees, filing fees, testing fees, and other service 
income from the use of water resources shall be remitted to the Water Trust Fund. The trust 
fund shall be accounted separately from the government’s general revenues and shall be 
automatically appropriated to the Department. Proceeds from the trust fund shall be utilized 
for water development, water sanitation and waste water treatment and management, and 
water sustainability programs and projects authorized under this Act: Provided, That a 
maximum of ten percent (10%) of the total income generated from raw water extraction shall 
be given as share of the concerned local government unit or indigenous peoples (IP) 
community who own the specific areas or land where the raw water was sourced. 
 
CHAPTER VIII 
FINAL 
PROVISIONS. 
 
Sec. 40. Applicability of Ease of Doing Business Law. – The prescribed processing time 
provided under Section 9.b of Republic Act No. 11032, otherwise known as the Ease of Doing 
Business and Efficient Government Service Delivery Act of 2018, shall be applicable to all 
agencies and LGUs covered under this Act particularly on accessing government services. 
 
Sec. 41. Transitory Provisions. – Performance audit of all water-related agencies and 
institutions, including LWUA and water districts, MWSS, MWSS-RO and its 
concessionaires, LGU- run utilities, Tourism Infrastructure and Enterprise Zone Authority, 
Philippine Economic Zone Authority, Bases Conversion and Development Authority, Subic 
Bay Metropolitan Authority, DILG, and NIA, shall be conducted by the Department. 
 
SEC. 42. Appropriations – The amount necessary to cover the initial implementation of this 
Act shall be charged against the currents year’s appropriations of the agencies and offices 
transferred 
and subsumed by the Department and the Commission in the General Appropriations Act. 
Thereafter, such sums as may be necessary for the continued implementation of the Act 


 
shall be included in the annual GAA. 
 
SEC. 43. Implementing Rules and Regulations. – Within one hundred eighty (180) days from 
the effectivity of this Act, the Department, NEDA, DBM, DENR, CSC, in consultation with 
concerned government agencies, the Presidential Legislative Liaison Office shall promulgate 
rules and regulations for the effective implementation of this Act. 
 
SEC. 44. Separability Clause. – If for any reason, any portion or provision of this Act shall 
be held unconstitutional or invalid, the remaining provisions not affected thereby shall 
continue to be in full force and effect. 
 
SEC. 45. Repealing Clause. – 
 
(a) The following provisions are hereby repealed: 
 
(1)  Section 3 (h) and Section 12 on the provision with respect to fixing of water 
rates and sanitation service fees, Section 3 (n) on the provision with respect 
to regulation of waterworks and deep wells, and Section 3 (p) on the provision 
with respect to regulation of waterworks and sanitation systems in privately 
owned subdivisions of Republic Act 6234 entitled, An Act Creating The 
Metropolitan Waterworks And Sewerage System And Dissolving The 
National Waterworks And Sewerage Authority, And For Other Purposes, as 
amended. 
 
(2) Title III on Local Water Utilities Administration Law of Presidential Decree 
No. 198 otherwise known as the Provincial Water Utilities Act of 1973, as 
amended by Letter of Instruction No. 700 - Providing Measures To Control 
And Regulate Increase In Water Rates, Letter of Instruction No. 744 - Relative 
To Reliable Water Supply At Reasonable Rates In The Countryside on the, 
Executive Order No. 124, 30 January 1987 - Reorganization Act of the 
Ministry of Public Works and Highways, Executive Order No. 123, 30 January 
1987 - Reorganization Act 
 
of Ministry of Social Services and Development. 
 
(3) Republic Act No. 3601 as amended by Presidential Decree No. 552 and 
Presidential Decree No. 1702 pertaining to the creation of the National 
Irrigation Administration; 
 
(4) Section 1 of Executive Order No. 124-A S. 1987 Amending Executive Order 
No. 124, dated 30 January 1987, Reorganizing the Department of Public 
Works and Highways, Redefining Its Powers and Functions, and For Other 
Purposes on renaming and reorganizing the National Water Resources 
Council into the National Water Resources Board. 
 
(b) The following provisions are hereby amended accordingly: 


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


 
Official Gazette or in a newspaper of general circulation. 
 
Approved,