Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1557 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
According to Article XII, Section 2 of the 1987 Constitution, it is the State's 
responsibility to protect and manage the country's natural resources for the benefit of its 
citizens. 
Water is a limited yet an essential resource. It not only sustains life but also drives 
economic development and helps maintain ecological balance. Unfortunately, it is often taken 
for granted.1 The Philippines is facing significant challenges in managing, distributing, and 
safeguarding its water resources. These are caused by rapid population growth, uncontrolled 
urbanization, environmental degradation, and the worsening effects of climate change. 
Moreover, the ASEAN Integrated Water Resource Management (IWRM) has identified 
fragmentation of institutional responsibilities, lack of science-based data and information for 
effective planning and decision-making, and inadequate water infrastructure facilities as key 
challenges exacerbating water management issues in the Philippines.2 Ultimately, many of 
the country’s current water-related laws and frameworks are outdated and fail to address 
today’s current realities. 
Rural and low-income communities often bear the brunt. With over 113 million people, 
a large number of Filipinos still struggle to access safe and dependable water. According to 
data from the United Nations and UNICEF, over half of all households or approximately 53% 
do not have access to a safely managed water supply, while 39% lack basic sanitation 
services. The situation is even more alarming in schools, where 55% have no access to safely 
managed water and 26% operate without safe sanitation facilities. These numbers highlight 
just how crucial it is to implement thorough and well-coordinated reforms in the water sector.3 
This proposed measure aims to create an integrated legal framework for the 
sustainable development, responsible use, conservation, and protection of the country’s water 
resources. It seeks to promote fair access to safe and affordable water, ensure efficient 
allocation and regulation, and strengthen the resilience of water systems against climate risks 
and natural disasters. It also promotes genuine and transparent involvement from the private 
sector, while focusing on infrastructure and public works that embrace climate-resilient and 
innovative designs and technologies, and globally recognized best practices. Acknowledging 
the urgent need for swift and coordinated action, the bill highlights that all projects related to 
water supply, treatment, and sanitation are of national significance, warranting priority 
1 World Bank. (2025, March 20). Water overview. World Bank. https://www.worldbank.org/en/topic/water/overview
2 ASEAN Integrated Water Resource Management (IWRM). (n.d.). Overview of IWRM in the Philippines.
http://aseaniwrm.water.gov.my/iwrm/overview-of-iwrm-in-philippines/ 
3 Planet Water Foundation. (n.d.). Where we operate: Philippines. https://planet-water.org/where-we-operate/philippines 
July 8, 2025
10:01 am


consideration and support from the government. 
Some of the key features: 
●
Creation of the Department of Water Resources, a centralized government
agency for comprehensive water resource management.
●
Establishment of the Water Regulatory Commission, an independent, quasi-
judicial body to license and regulate all water service providers including
sewerage and septage services.
●
Reconstitution of the National Water Resource Allocation Board which shall
supervise the effective appropriation and regulation of the water resources in
the country in accordance with Presidential Decree No. 1067.
●
Establishment of a Water Trust Fund to finance water development and
sanitation projects, wastewater treatment, and sustainability and infrastructure
programs.
This proposed measure was approved on third and final reading by the House of 
Representatives in the 19th Congress, demonstrating legislative support and importance. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1557 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
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 APPROPRIATING 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 Resources Act”. 
SECTION 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. 
SECTION. 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 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 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 acts of defining and determining the 
appropriate methods, acts, and protocols aimed at preventing and reducing the risk of 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, droughts, 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) License refers to the Water Supply or Sanitation Services Operating License that 
the Water Regulatory Commission is authorized to grant and issue to service providers. 
 
 (i)   Licensee refers to a service provider to whom a license is granted or issued by the 
Water Regulatory Commission. 
 
 (j)   Missionary Water Services refer to water supply or services to areas that have 
existing safe water supply and services due to geographic limitation or absence of economic 
and market viability. 
 
 (k)  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. 
 
(l)   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. 
 
(m) 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. 
 
(n)  River Basin Organization (RBO) refers to a multi-stakeholder organization which 
plans, coordinates, and monitors activities within a river basin cluster. 
 
(o)  Sanitation refers to the provision of facilities and services for the safe management 
of human excreta and wastewater, from collection to containment, and storage and treatment 
onsite or conveyance, treatment and eventual safe end use or disposal, and includes the safe 
management of solid waste and animal waste. 
 
(p)  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. 
 
(q)  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 Member States of the United Nations in 2015. 
 
(r)   Septage is the liquid and solid material pumped from a septic tank, cesspool, or 
other primary treatment source. 
 
(s)  Septage Management refers to the provision of proper collection, treatment, and 
disposal of septage. 
 
(t)   Service Area refers to the area covered by the water distribution system, sewerage 
or septage management services. 
 
(u)  Sewage refers to water borne human or animal wastes, excluding oil or oil waste, 
removed from residences, buildings, institutions, and industrial and commercial 
establishments together with such groundwater, surface water and storm water as may be 
present including such waste from vessels, offshore structures, other receptacles intended to 
receive or retain waste or other places or the combination thereof. 
 
(v)  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. 
 
(w) Sewers refer to pipes or such other works or structures which are built and 
constructed to carry, transport, and dispose of sewage. 
 
(x)  Social inclusion refers to the process of improving the terms for marginalized and 
disadvantaged individuals, indigenous peoples, and similar groups to take part in society. 
 
(y)  Tariffs refer to amounts which may be charged by licensees for their water supply 
and sanitation services based on principles, standards, and guidelines established by the 
Water Regulatory Commission. 
 
(z)     Water Demand Management 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. 
 
(aa) Water Districts refer to government-owned and controlled corporations, organized 
under Presidential Decree (PD) No. 198, as amended, or the Local Water Utilities 
Administration Law, created primarily to acquire, install, operate, maintain, and improve water 
supply and distribution systems for domestic, industrial and municipal uses of residents and 
to provide, maintain and operate waste water collection, treatment and disposal facilities within 
the boundaries of the district. 
 
(bb) 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. 
 
(cc)   Water Resource refers to water under the ground or groundwater, water above 
the ground such as surface water, run-offs, floods, storm water and urban drainage, treated 
wastewater, water in the atmosphere or rain water, and the waters of the sea within the 
territorial jurisdiction of the Philippines. 
 
(dd) Water resource allocation is the process of sharing the limited water resources 
between competing users. This consists of (i) determining water availability, and (ii) 
determining how the water should be shared among competing users. For the purposes of 
this Act, resource allocation shall also mean water resources allocation. 
 
(ee) 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. 
 
 (ff) Water Service Provider (WSP) refers to the water district, any local government 
unit (LGU)-run water utility, Barangay Waterworks and Sanitation Association, Rural 
Waterwork Sanitation Association, cooperatives engaged in water service provision, or private 
sector entity that provides water supply services to any given area. 
 
 (gg) 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 
(WSPs). 
 
 
CHAPTER II 
THE DEPARTMENT OF WATER RESOURCES 
 
SECTION 4. The Department of Water Resources. – There is hereby created and 


  
established the Department of Water Resources, hereinafter referred to as the Department. 
 
SECTION 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, and water utilization 
aspects of fisheries or aquaculture. 
 
The Department shall also be the primary agency responsible for the planning and 
policy formulation towards the attainment of universal access to safe, adequate, affordable, 
and sustainable water supply, and improved sanitation services for all Filipinos.  
 
The Department shall be the primary national agency to enforce PD 1067, otherwise 
known as The Water Code of the Philippines.  
 
In the implementation of Republic Act (RA) No. 9275, otherwise known as the 
Philippine Clean Water Act of 2004, the Department shall be responsible for preparing, 
formulating and implementing a five-year plan of action for a national and a regional septage 
management plan, which shall contain measures for the construction of wastewater treatment 
facilities and provision, installation, operation and maintenance and, where practicable, the 
integration of sewerage, septage management, storm water management and other sanitation 
facilities. Compliance with the mandate to implement septage management services and 
systems by any WSP pursuant to the Philippine Clean Water Act of 2004 shall be reckoned 
within five (5) years from the date of promulgation or publication of the septage management 
plan formulated by the Department. 
 
SECTION 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 units (LGUs), non-government organizations, private organizations, 
individuals, global societal actors, and in various sectors such as water supply, irrigation, 
fisheries, hydropower, navigation, ecosystem services, 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 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 framework with 
specific, measurable, attainable, relevant, and timely actions;                      
 


  
(d)  Each river basin has its unique characteristics relating to the physical, 
sociocultural, 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 State shall prioritize the development of surface water to ensure adequate and 
reliable supply of water: Provided, That the development of water resources shall include 
strategies for the mitigation of water-related hazards and climate change adaptation; 
  
(g)  Water resources shall be fairly and sustainably managed, and water services shall 
be provided where they are intended and most needed; 
  
(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; and 
 
(i)   The State recognizes the role of the private sector and mobilization of private 
resources in the development of waterworks systems through concession agreements, joint 
venture agreements, bulk water supply agreements, management and service agreements 
and other contracts for water supply provision, water sanitation and treatment services, and 
the development, operation and maintenance of water supply and septage management 
systems. The State shall encourage the private sector to provide the needed investments for 
programs and projects to ensure adequate water supply and promote water security. 
 
SECTION 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, 
either through public programs and projects or public-private partnership or other 
mechanisms, 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: Provided, That the Department shall pursue universal access to clean water by 
2030; 
  
(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 other stakeholders, including water users, 
community members, indigenous and marginalized peoples, are involved at all levels; 
 
(h) Develop a standardized pricing framework for water use, septage and sewerage 
services that accounts for environmental externalities and pricing considerations such as 
reasonable rate of return; rate adjustment mechanisms for consumer price indices and 
currency fluctuations; and other factors relevant to the operation of waterworks systems and 
infrastructure; 
 
(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; and 
 
(j)   Prioritize and provide technical and financial assistance to fourth, fifth and sixth 
class municipalities in the Philippines in the development of water resources and waterworks 
systems and provision of water and sanitation services. 
 
SECTION 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, storm water 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) Prepare the NWRMP in consultation with other agencies and stakeholders, 
following the IWRM framework and integrating therein a national land use plan, submit the 
NWRMP to the National Economic and Development Authority (NEDA) Board for approval 
and eventual adoption, and regularly update, every five years or as deemed necessary by the 
Department, in order to ensure its relevance to the times; 
 
(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; 
 
(g)  Formulate long-term policies to balance the sustainability and optimal multiple use 
of water resources, define the hydrologic boundaries of basins of the existing water supply 
sources, and develop or update existing River Basin Master or Comprehensive Plans which 
includes all aspects of water management and development such as water supply and 
sanitation, irrigation, flood control and storm water or urban drainage, drought risk 
management, water resource development systems and other public water works projects, 
including phasing of implementation; 
 
(h) Identify, based on the river basin master plans, priority packages for water 
infrastructure development per river basin, including water supply, sanitation, irrigation, 
hydropower, flood control and storm water or urban drainage, drought risk management, water 
resource development systems and other public works projects; 
 
(i) 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; 
 
(j)   Formulate policy, strategies, master plans and programs on flood risk management 
in the context of integrated flood management (IFM) which integrates water, land, coastal zone 
and multi-hazard management. In integrating land use planning and water management, the 
Department shall harmonize and synthesize plans to enable the sharing of information 
between land-use planning and water management authorities. In this regard, a holistic 
approach shall be adopted by making the IFM a part of a wider risk or multi-hazard 
management system that includes earthquakes, landslides, fires, tsunamis, droughts, and 
other calamities of the same gravity or nature; 
 
(k) Strengthen and coordinate policy making and planning for flood management, 
integrated with storm water or urban drainage and appropriate retention or retarding basins in 
order to harvest and reuse water, and to plan against, prevent, and minimize the detrimental 
and catastrophic effects of flooding;  
  
(l)   Assist and provide the NEDA with the required data and input from the water sector 
in the formulation of the country’s short-term and long-term strategic development plans and 
actions, and recommend to the NEDA Board the adoption of general policies and guidelines 
for water resources development; 
 
(m) Review, approve, and provide oversight over all water-related development plans, 
programs, and projects of any agency within the context of the NWRMP, and overall national 
plans and programs;           
            
(n) Develop and implement, in coordination with other relevant agencies, effective 
codes, standards, benchmarks, and reasonable guidelines on project investigation, 
formulation and planning of water resources infrastructure, 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; 
 
(o)  Ensure that gender equality, social inclusion, environmental protection, climate 
resiliency, disaster risk reduction, and indigenous knowledge systems and practices are 
integrated into any water resource management planning, policy making, and the design and 
construction of water infrastructure; 


  
 
(p)  Ensure that the planning of water infrastructure considers the highest efficiency 
and most appropriate technology and quality, in accordance with national development 
objectives; 
 
(q)  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; 
 
(r)   Gather,  analyze,  and  organize  needed  statistical  data  and  information;  for  
those water-related  data  generated  by  other  concerned  agencies,  establish,  in  
coordination  with  these agencies, the guidelines, standards, methodologies, and protocols 
for data collection that will be officially recognized by the Department, and institute 
mechanisms for coordination with other agencies as regards their submission and certification 
of submitted water-related data to the Department; 
 
(s) In case of gaps in data collection by other agencies, under item (r) above, the 
Department may collect the said data in accordance with the established guidelines, 
standards, methodologies and protocols, and in coordination with the respective agencies: 
Provided, that both the Department another agency ensure that duplication of roles in data 
collection is prevented; 
 
(t)   Ensure continued stakeholder  engagement  through  the  creation  of  a  Multi-
Sectoral Stakeholder Council with representatives from all water sector, including vulnerable 
and indigenous communities: Provided, That the Multi-Sectoral Stakeholder Council shall be 
the primary avenue for all multi-sectoral consultations mandated under this Act, and shall be 
consulted in the formulation of all national plans, programs, and policies of the Department: 
Provided, further, That the sectoral representatives shall be appointed by the President of the 
Philippines, hereinafter referred to as the President; 
 
(u) 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; 
 
(v) Ensure the effective implementation of all the provisions of PD 1067; 
 
(w) 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; 
 
(x)  Ensure that the easements provided for in Title VII, Chapter 2, Section 2 of RA 
386, otherwise known as the Civil Code of the Philippines and other relevant laws are 
enforced, especially in all the esteros and waterways, as well as abate the dumping of 
untreated wastewater and sewage into water bodies, including all acts and omissions in 
violation of PD 984, also known as National Pollution Control Decree of 1976, as amended, 
and other related laws; and 
 
(y) Issue and promulgate rules, regulations and guidelines as may be necessary to 
implement and enforce its powers and functions under this Act.                      
 
II.   Resource Allocation and 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  developm
ent 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 noncompliance; 
 
(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 
development, 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 Section 13 of Republic Act No. 9275: 
Provided, That the implementation of which shall be transferred from the Department 
of Environment and Natural Resources to the Department of Water Resources; 
(2) Raw water price, which shall take into account, among others, the scarcity 
of water; and 
(3) Appropriate payment structures for ecosystem services, which shall not 
exceed five centavos (P0.05) per cubic meter of water consumption; 
 
(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 
aspects of water resources development and management as may be needed to support the 
policy and plan proposals of the Department, such as, but not limited to, impacts of climate  


  
change, weather modification, flood monitoring and modeling, environmental quality, and 
desalination; 
  
(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; and 
 
(m) Review the status of water permits issued and outstanding as of the date of the 
effectivity of this Act and compliance by the water permit holders with the terms of their 
respective water permits. 
 
(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; and 
 
(m) Review the status of water permits issued and outstanding as of the date of the 
effectivity of this Act and compliance by the water permit holders with the terms of their 
respective water permits. 
 
If, in the determination of the Department, acting on the basis of information, records 
and reports submitted by any holders of such water permits, there is non-use of the water 
resource covered by such water permits for a period of one (1) year from the date of issuance 
thereof, the Department shall cause the termination or cancellation of any such water permits 
to the National Water Resources Allocation Board: Provided, That the review made by the 
Department shall be considered prima facie evidence of non-use in respect of any affected 
water permit. For purposes of this Section, “non-use” refers to the failure of the water permit 
holder to utilize the water resource or construct substantial works, facilities, systems or other 
infrastructure that had been constructed in pursuit of or for the purpose stipulated in the water 
permit. 
 
The Department shall submit a report to Congress on the completion of its review under 
this section within one (1) year from the effectivity of this Act. 
 
III.    Institutional Arrangement with Public Water Agencies and 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) Coordinate the planned and ongoing river basin initiatives of government agencies 
and corporations, to which the Department shall review and endorse approval and funding 
from the national budget thereof, as may be provided under existing laws, rules and 
regulations; 
 
(c) Harmonize all relevant national river basin policies and formulate new policies and 
create an enabling policy environment that shall allow effective and efficient management and 
governance of the country’s river basins. To this end, all concerned national government 
agencies and corporations shall consult the Department in such planning and implementation; 
 
(d)  Serve as  the national  policy  coordination  office  for  LGUs  and  non-
governmental organizations in the development and sustainability of all river and catchment 
basins, for which the Department shall recommend the approval and funding thereof of 
national government agency and corporations’ support to such local and nongovernment river 


  
and catchment basin initiatives; 
 
(e) Serve as the government’s central river basin database management agency, to 
which all government agencies and existing river basin organizations with relevant mandates 
and developmental initiatives within the river basins are required to cooperate and regularly 
submit their updated databases for integration and consolidation; 
 
(f)   Develop materials for capacity building and training of prospective RBOs, as well 
as other concerned units of the Department and other water-related agencies, LGUs, and 
WSPs particularly in the areas of integrated water resources management and river basin 
master planning; 
 
(g)  Authorize its representatives or any deputized agent to enter any property of public 
dominion with prior notice and consent: and 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; 
 
(h)  Provide technical assistance to water users including farmers, communities, and 
LGUs and other WSP whether directly or in coordination with other agencies on all aspects of 
integrated water resources management; 
 
(i)   Respond to  consumer  complaints,  and  ensure  the  adequate  promotion  of  
consume interests; and 
 
(j)   Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Department. 
                      
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, Comprehensive Development 
Plans or Provincial Physical Framework and Development Plan.                      
 
V.    Other Functions 
 
(a)  Create when there are no existing water resources or operators, water resource 
subsidiaries, instrumentalities, and entities to engage in water source development, water 
supply, water transmission, water distribution, waste water treatment and management, 
missionary water access, storm water management, and sanitation in accordance with existing 
laws, without prejudice to private entities capable of and willing to engage in the 
aforementioned activities through concession agreements, joint venture agreements, bulk 
water agreements, or service agreements or contracts. For this purpose, the Department shall 


  
ensure compliance with existing frameworks, rules, regulations and guidelines for private 
sector participation in water transmission, water distribution, waste water treatment and 
management, storm water management, and sanitation. 
 
(b)  Enter   into   contracts,  joint   venture   agreements   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: 
Provided, That government entities with mandates to enter into contracts with private entities 
under existing laws shall continue to have such authority:  Provided,  further,  That  nothing  in  
this  Act  shall  be  interpreted  as  adding  approval, endorsement, or consent requirements 
for water-related government projects; 
 
(c)  Appoint, hire, and maintain adequate staff and personnel, advisers or consultants 
with suitable qualifications and experience, as necessary, subject to existing rules and 
regulations; and 
 
(d)  Exercise  such  other  powers  and  functions  necessary  or  incidental  to  the  
effective administration and management of the country’s water resources. 
 
SECTION 9. Composition. – The Department shall be composed of the Office of the 
Secretary, and the various bureaus and services, and regional offices. The Office of the 
Secretary shall house the Office of the Department Secretary, the Offices of the 
Undersecretaries, the Offices of the Assistant Secretaries, and their immediate support staff. 
 
SECTION 10. 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 of Water Resources, who shall be appointed by the President. The 
Secretary of Water Resources shall: 
 
(a)  Submit to the NEDA Board the Department’s recommendations on policies on 
water resources requiring presidential decision, and 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)  Advise the President on the status of water management and supply in the country, 
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) Promulgate rules and regulations necessary to carry out the objectives, policies, 
and functions of the Department; 
 
(e) Exercise supervision and control over all bureaus and offices under the 
Department; 
 
(f)    Supervise all attached agencies and corporations in accordance with law; 
 
(g)   Represent the Department in contracts, awards, and other similar agreements; 
 
(h)   Delegate authority for the performance of any power or function, as defined 
hereinto officials and employees under his direction as deemed appropriate; 


  
 
(i)  Act as the Chairperson of the governing board of the attached agencies of the 
Department; 
 
(j)   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; 
 
(k)  Discipline  the  officials  and  employees  of  the  Department,  including  officials  
and employees of all the bureaus and offices under it, in accordance with civil service laws, 
rules, and regulations; and 
 
(l)   Perform such other duties and responsibilities as may be provided by law. 
 
The Secretary of Water Resources shall also serve as a voting member of the NEDA 
Board, the Governing Boards of the Climate Change Commission, the National Disaster Risk 
Reduction and Management Council, and the National Land Use Committee. 
 
SECTION 11. Undersecretaries and Assistant Secretaries. – The Secretary of Water 
Resources shall be assisted by not more than three (3) Undersecretaries and three (3) 
Assistant Secretaries, all of which shall be appointed by the President upon the 
recommendation of the Secretary of Water Resources: Provided, That at least one (1) 
Undersecretary and one (1) of the Assistant Secretaries shall be career officers. 
 
                     The Secretary of Water Resources is hereby authorized to delineate and assign 
the respective functional areas of responsibility of the Undersecretaries and Assistant 
Secretaries in accordance with the mandate and objectives of the Department.  Within their 
respective functional areas of responsibility, the Undersecretaries and Assistant Secretaries 
shall have the powers and functions as provided for in Chapter 2, Book IV of the Administrative 
Code of 1987. 
 
SECTION 12. Qualifications and Appointment.  – 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. 
 
SECTION 13. Department Bureaus and Services, and Regional Offices. – The Department 
shall establish, operate, and maintain the Bureaus and Services under it such as, but not 
limited to: 
(a) Policy and Planning Bureau; 
 
(b) Decision Support System Bureau; 
 
(c) Bureau of Technical Services; 
 
(d) Legal and Legislative Research Service; 
 
(e) Internal Audit Service; 
 
(f)  Public Affairs Service; 
 
(g) Administrative and Human Resources Service; 
 
(h) Flood Control and Drainage Coordination Service; 
 


  
(i)  Comptrollership and Financial Management Service; and 
 
  
(j)  Local Water Service Providers Bureau. 
 
A Water Resources Regional Office 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 Bureaus, Services and Regional Offices shall each be headed by a Director, who 
shall be responsible for the efficient and effective discharge of the functions of the Bureau, 
Service, or Office concerned.  The  Bureau  Director  and  Regional  Director  shall  be  assisted  
by  one  (1) Assistant Director. 
 
The Department shall retain existing Project Management Offices as may be required, 
which shall be under the supervision and control of the appropriate official determined by the 
Secretary of Water Resources. 
 
SECTION 14. Attached Agencies. – The following agencies shall be attached to the 
Department for purposes of policy and program coordination, monitoring, and evaluation: 
 
(a)  The Metropolitan Waterworks and Sewerage System (MWSS), whose mandate, 
powers, and functions are defined under RA 6234, as amended entitled, “An Act Creating the 
Metropolitan Waterworks and Sewerage System and Dissolving the National Waterworks and 
Sewerage Authority, and For Other Purposes,” shall be transferred from the DENR and 
attached to the Department: 
 
Provided, That the MWSS shall continue to facilitate the exercise by the 
concessionaires of their responsibility; carry out accounting and notification functions; monitor, 
report, and administer loans; perform related functions in connection with existing projects; 
manage, operate, and dispose its retained assets: Provided, further, That its regulatory arm, 
the MWSS – Regulatory Office, shall be fully absorbed by the Water Regulatory Commission 
created under this Act; 
 
(b)  The National Irrigation Administration (NIA), whose mandate, powers, and 
functions are defined under RA 3601 entitled “An Act Granting the National Irrigation 
Administration,” as amended by PD 552 and PD 1702; and 
 
(c)  The Laguna Lake Development Authority (LLDA), whose mandate, powers and 
functions are defined under RA 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 
 
The Secretary of Water Resources shall be the Chairperson of the Governing Boards 
of the aforementioned government-owned and controlled corporations to be attached under 
the Department. In case existing laws, rules and regulations provide for a specific process in 
appointing the agency’s Chairperson, the Secretary of Water Resources shall serve as Co-
Chairperson.  
 
Any other agency performing water resources management, conservation and 
protection functions may be transferred to the Department as the President deems necessary 
 


  
SECTION 15. Offices, Functions and Personnel to be Completely Subsumed Under the 
Department. – The following offices with their applicable powers, functions, personnel, funds 
and appropriations, records, equipment and property shall be subsumed under the 
Department: 
 
(a)  The National Water Resources Board (NWRB) with its divisions and sections, 
whose mandate, powers and functions are provided in PD 424 creating the National Water 
Resources Council, now NWRB, as amended: Provided, That its water utility regulation units 
and functions vested under Commonwealth Act No. 146, also known as the Public Service 
Act, as amended, shall be absorbed by the  Water  Regulatory  Commission  created  under  
this  Act:  Provided,  further,  That  its  resource allocation or regulation units vested under PD 
1067 shall be absorbed by the National Water Resources Allocation Board and the Resource 
Allocation Office,  also created under Section 18 of this Act; 
 
(b)  The Local Water Utilities Administration (LWUA) with its services, departments and 
divisions, whose mandate, powers and functions are provided for in Title Ill of Presidential 
Decree No. 198, as amended, otherwise known as the “Local Water Utilities Administration 
Law”: Provided, That its economic regulatory functions over local water districts shall be fully 
absorbed by the Water Regulatory Commission created under this Act. In the implementation 
of its functions, LWUA will be transformed into the Local Water Service Providers Bureau 
(LWSPB) which shall: 
 
(1)  furnish technical assistance  and  personnel  training  including  training  
programs  for accounting and fiscal practices of local water service providers; 
 
(2)  monitor   and   evaluate   compliance   with   local   water   standards   of   
water   service providers; and 
 
(3)  effect system  integration,  joint  investment  and  operation,  district  
annexation  and de-annexation whenever economically warranted, in accordance with 
Section 50 of PD No. 198, as amended by Section 22, PD No. 768. The authority of 
LWUA to review, approve and regulate the tariff rates of local water utilities to whom it 
has extended loans or other financing under Section 64of PD No. 198, as amended, 
is hereby transferred to the Water Regulatory Commission as provided in this Act; 
 
(c)  The River Basin Control Office (RBCO) of the DENR whose mandate, powers and 
functions are provided in Executive Order (EO) No. 510, Series of 2006 and EO 816, Series 
of 2009, as amended: Provided, That its function pertaining to watershed reforestation 
activities shall be transferred to the DENR-Forest Management Bureau, but the targeting of 
priority watershed areas shall be coordinated with the Department; 
 
(d) The Manila Bay Coordinating Office of the DENR which was strengthened by virtue 
of DENR Administrative Order 2011-01 to coordinate the efforts of the fourteen (14) national 
agencies covered by the Mandamus Order of the Supreme Court to rehabilitate Manila Bay; 
 
(e) The Water Supply and Sanitation Unit of the Department of the Interior and Local 
Government (DILG); and 
 
(f)   The Water Resources Management Office of the DENR whose mandate, powers 
and functions are provided in EO 22, series of 2023. 
 
SECTION 16. Functions to be Transferred to the Department. – The following functions of 
their respective agencies, bureaus, and units shall be transferred to the Department: 
 
(a) The planning, programming, administration, monitoring, management of the 


  
National Sewerage and Septage Management Program (NSSMP) of the Department of Public 
Works and Highways (DPWH); and 
 
(b) The following functions of the dissolved Pasig River Rehabilitation Commission and 
transferred to the Manila Bay Task Force per EO 93 Series of 2019: 
 
(1)  Updating and leading in the overall implementation of the Pasig River 
Rehabilitation Master Plan; and 
 
(2)  Ensuring that the easements provided for in the Civil Code and other 
relevant laws are enforced, especially in all the esteros and waterways as well as 
abating the dumping of untreated wastewater and sewage into water systems, 
including all acts and omissions in violation of PD 984, as amended, and other related 
laws. 
 
CHAPTER III 
INTERDEPARTMENTAL RELATIONS 
AND INSTITUTIONAL ARRANGEMENTS OF THE DEPARTMENT 
 
SECTION 17. 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 DENR shall continue to have primary authority and responsibility for protecting 
the environment and managing the country’s watersheds. Further, the Pollution Adjudication 
Board shall remain to have jurisdiction with respect to adjudication of pollution cases based 
on exceedance of the DENR Effluent Standards and other acts defined as prohibited under 
Section 27 of RA 9275 and filed by this Department. Furthermore, the Department shall 
coordinate with the DENR regarding the establishment of protocols for management of all 
water-related data being collected by the DENR 
 
(c)  The Department of Energy (DOE) and the National Power Corporation shall ensure 
that hydropower plant development  plans  are  consistent  with  the  National  Water  
Development  and Management Plan; 
 
(d)  The Department shall coordinate with the Department of Agriculture (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. Furthermore, the Department 
shall coordinate with the DA and its Bureau of Soils and Water Management (BSWM) 
regarding the establishment of protocols for management of all water-related data being 
collected by DA, as well as the outputs of research and studies by BSWM which may serve 
as input to policy formulation by the Department; 
 
(e)  The  Department  shall  coordinate  with  the  National  Disaster  Risk  Reduction  
and Management Council 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,   
Philippine Atmospheric, Geophysical and Astronomical Services Administration, and National 
Mapping and Resource Information Authority for scientific studies, integrated surveys, 


  
mapping, charting, and decision support systems; 
 
(g)  The Department shall coordinate with the Department of Tourism on recreational 
or visual use of water resources; 
 
(h)  The Department shall coordinate with the Philippine Reclamation Authority, 
Tourism Infrastructure and Enterprise Zone Authority and economic zone authorities on water 
resources development  and  water  requirements  within  reclamation  areas,  tourism  
development  areas,  and economic zones, respectively 
 
(i)   The Department shall coordinate with the Bangsamoro Autonomous Region in 
Muslim Mindanao (BARMM), specifically its Economic and Development Council, Disaster 
Risk Reduction and Management Council, and Ministry of Environment, Natural Resources 
and Energy, regarding the preparation of master plans of river basins that overlap with the 
inland waters within the BARMM’s jurisdiction, and  ensure  the  alignment  of  these  plans  
with  the  NWRMP  and  the  Bangsamoro Development Plan and other related regional plans 
of BARMM; 
 
(j)   The Department shall coordinate with the DPWH as regards the construction of 
water projects including flood control and other related projects within the purview of the 
DPWH: Provided, That the flood management plans are aligned with the NWRMP, and that 
flood waters be considered and harnessed as potential water source: Provider, further, That 
the Department shall coordinate with the DPWH regarding the establishment of protocols for 
management of all water-related data being collected by the DPWH and its Bureaus; 
 
(k)  The Department shall coordinate with the LGUs that own the specific areas or land 
where raw water will be sourced, as regards the implementation of Section 38 of this Act, 
specifically on the sharing of the total income generated from raw water pricing; 
 
(l)   The Department shall coordinate with the Department of Human Settlements and 
Urban Development in planning, monitoring and enforcing integrated land use and water 
resources management in the Comprehensive Land Use Development Plans and Zoning 
Ordinances of the LGUs to ensure, among others, the protection of water sources and that 
water availability is factored in proposed land use development plans and projects; 
 
(m) The Department shall coordinate with relevant government agencies, including 
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; 
and 
 
(n)  All other departments and agencies of the government implementing water-related 
functions and projects shall ensure that the programs and projects are consistent with the 
national water management plan of the Department.                                                                                         
 
 
CHAPTER IV 
NATIONAL WATER RESOURCES ALLOCATION BOARD 
AND THE RESOURCE ALLOCATION OFFICE 
 
SECTION 18. Reconstitution of the National Water Resources Board (NWRB) as the 
National Water Resources Allocation Board. – The NWRB is hereby reconstituted and shall 
henceforth be known as the National Water Resources Allocation Board, hereafter called the 
“Board”. The water resources allocation and regulation functions of the NWRB are hereby 


  
transferred to the Board, which shall supervise the effective appropriation and regulation of 
the water resources in the country in accordance with PD 1067. 
 
The Board shall be composed of the Secretary of Water Resources as the Chair, with 
the Secretary of Environment and Natural Resources as the Vice-Chairperson, and the heads 
of agencies of the NEDA, Department of Justice, Department of Science and Technology, and 
the University of the Philippines – National Hydraulic Research Center as members. 
 
SECTION 19. Functions of the Board. – The Board shall perform the following functions: 
 
(a) Promulgate, among others, rules  and  regulations  for  the  exploitation  and  
optimum utilization of water resources, in accordance with PD 1067 and other existing laws, 
including the imposition on water appropriators of such fees or charges by the Department of 
Water Resources: Provided, That the imposition and collection of such fees and charges shall 
be implemented by the Department of Water Resources; 
 
(b) Approve the guidelines and processes pertaining to water regulation, as 
recommended by the Secretariat; 
 
(c)  Review and decide on requests for permits to extract or utilize the country’s water 
resources and grant the corresponding water rights, upon recommendation of the Resource 
Allocation Office: Provided, That the water rights are exercised within five (5) years of granting 
of such rights: Provided, further, That applicants for water permits shall submit proof of land 
ownership of, or right to use the property where the water source is located: Provided, finally, 
That, if the applicant is currently using the water source being applied for domestic or municipal 
purposes upon effectivity of this Act, such applicant may submit such proof of prior use of 
possession of said property in lieu of ownership or right to use; 
 
(d) Exercise appellate jurisdiction over decisions in cases involving the following: 
 
(1) Violations and   disputes   relating   to   the   appropriation, utilization,   
exploitation, development, control, conservation and protection of waters; 
 
(2) Violations and disputes on raw water fees; and 
 
(3) Violations and disputes involving water permits, administrative allocation of 
water resources and transfer of water rights; 
 
(f)   Issue subpoena duces tecum and subpoena ad testificandum; 
 
(g) Cite any person or party in contempt for refusal to appear, testify or comply with the 
lawful orders of the Board in relation to any matter subject to its investigation 
 
(h) Hear, receive evidence, and decide on cases falling within its jurisdiction; 
 
(i)   Impose the appropriate sanctions over violations committed by appropriators in 
accordance with existing laws, rules and regulations as well as future rules and regulations 
which the Board shall promulgate 
 
(j)   Review, update,  and  revise  all  fees,  charges,  and  penalties  imposed  on  all  
water appropriators as stated under Chapter VII and VIII of PD 1067, upon recommendation 
by the Secretariat, and based on scientific and evidence-based studies; 
 
(k)  Delegate specific tasks vested unto the Board that may be undertaken by the 
Executive Director, as may be necessary; 


  
 
(l)   Promulgate its own rules and procedures; and 
 
(m) Exercise such other powers as may be necessary to carry out its duties and 
responsibilities under this law. 
 
No injunction may be issued by any court to restrain any proceeding before the Board 
except on the basis of question of law by the Supreme Court on certiorari. 
 
Every order or decision rendered by the Board shall be in writing and shall state clearly 
and distinctly the facts and the law on which it is based. The Board shall decide each case or 
application within thirty (30) days following its formal submission for resolution. It shall publish 
and make available for public inspection all decisions and final orders including those in the 
adjudication of contested cases or applications 
 
SECTION 20. Resource Allocation Office. – There is hereby created a Resource Allocation 
Office which shall be attached to the Department. It shall serve as Secretariat to the Board 
and shall exercise the following functions in order to provide technical support to the Board 
towards the effective regulation of the country’s water resources: 
 
(a) Advise the Board on all matters relating to resource allocation and regulation; 
 
(b) Formulate rules and regulation for the exploitation and optimum utilization of 
surface water, groundwater,  and  seawater  extraction  and  use,  for  the  approval  of  the  
Board,  and  for implementation by the Resource Allocation Office, including the processes for 
the application of water permits, in accordance with PD 1067 and other existing laws; 
 
(c) Process applications of rights to utilize water resources for the appropriate, optimal 
and sustainable use of surface and ground water, for the approval of the Board or its Executive 
Director, as may be delegated by the Board; 
 
(d) Upon approval by the Board, issue water permits granted to water appropriators; 
 
(e) Monitor performance of water rights grantees including, among others, ensuring 
that water utilization is in accordance with the terms of the permits granted unto them; 
 
(f)   Investigate, motu proprio, violations of the water rights and the Water Code 
 
(g) In the case of violations and conflicts between and among users, file the necessary 
cases for the decision of the Board; 
 
(h) Enforce the decisions promulgated by the Board, and as may be delegated by the 
Board; 
 
(i)   Coordinate with other relevant units of the Department regarding the generation, 
updating, managing, and sharing of water data relevant to each other’s performance of 
functions; 
 
(j)   Respond to  consumer  complaints,  and  ensure  the  adequate  promotion  of  
consumer interests; and 
 
(k) Perform such other related functions and activities which are necessary for the 
effective regulation of water-related services. 
 
The Office  shall  be  headed  by  an  Executive  Director  which  shall  have  the  rank  


  
of  an Undersecretary, and shall be assisted by one (1) Deputy Executive Director which shall 
have the rank of an Assistant Secretary. 
 
 
CHAPTER V 
WATER REGULATORY COMMISSION 
 
SECTION 21. 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 eighty (180) days after the effectivity of this Act. The Commission shall have a Board 
of Commissioners, and shall be vested with powers and functions, as conferred and set forth 
hereunder. 
 
SECTION 22. Powers and Functions of the Commission. – The overall authority and 
powers of the Commission shall cover and apply to all service providers, whether private or 
public, providing or intending to provide water supply, including suppliers to subdivisions or 
other service providers, sewerage, 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: Provided, That local water districts, LGU-run 
and private utilities, especially level II and III water service providers found performing 
significantly below prescribed standards shall be required to submit a Public Service 
Improvement Plan with committed performance improvements with a one-year 
implementation timeframe: Provided, further, That unjustifiable failure to implement provisions 
of, or meet commitments in, the Public Service Improvement Plan shall be cause for 
dissolution, consolidation, privatization, or management takeover of the local water district: 
Provided, finally,  That  the  Commission  shall  have  the  power  to  cause  such  dissolution,  
consolidation, privatization, or management takeover and shall mandate the Department to 
implement the same; 
 
(c) Coordinate with the Department in the implementation of intervention, 
consolidation, dissolution, privatization, or takeover, and shall ensure the continuity of delivery 
of public service; 
 
(d)  Coordinate with the Philippine Competition Commission and provide technical 
support in the Commission’s exercise of authority and jurisdiction to establish rules and 
enforce regulations to monitor, investigate, provide remedies for, and provide inputs in the 
Philippine Competition Commission’s hearings and deliberations on cases involving any 
market power abuse or anti-competitive or discriminatory act or behavior by or against any 
participant in the water supply and sanitation sector, excluding only those agreements 
involving projects that are not considered natural monopolies, including in respect of the 
determination of whether any merger, acquisition, joint venture or other transaction, 
agreement or arrangement by, between or among water service providers or any participant 
in the water supply and sanitation sector is anti-competitive or will substantially prevent, restrict 
or lessen competition in the relevant market. Without prejudice to the actions that the 
Philippine Competition Commission, pursuant to RA 10667, may undertake on its own, the 
Water Regulatory Commission may be directed by the Philippine Competition Commission, 
upon finding that a market participant has engaged in, or fell victim to such act or behavior, to 


  
stop or redress the same within the functions and powers granted to the Water Regulatory 
Commission under this Act. 
 
 (e)  Issue licenses authorizing the operation of water supply and sanitation services, 
including community water services, in any specified area or areas with water supply and 
sanitation services in any specified area in the Philippines: Provided, That any license to use 
water resources or operate water supply and sanitation services shall be considered expired 
if not exercised by the licensee within five (5) years upon the date of issuance; 
 
(f)   Impose and collect annual levies, and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers and functions of the Commission: Provided, 
That the rate of annual levies and fees shall be determined strictly on a partial cost recovery 
basis for the reasonable and actual cost of regulation: Provided, further, that nothing in this 
section shall be construed as authorizing the Commission to impose and collect ad valorem 
annual levies 
 
(g) With due regard to the standardized pricing framework developed by the 
Department pursuant to Section 7(h) of this Act, 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. The sewerage and septage management tariffs, 
rates and charges may be in the form of an environmental fee based on the actual water 
consumption of the consumers for regular conduct of desludging and fixed fees for emergency 
desludging. 
 
The Commission shall endeavor to adopt a local pricing framework, which shall provide 
for the minimum water, sewerage and septage management rates and allow for uniform 
adjustments to the consumer price index, or foreign exchange, as applicable, across one or 
more areas: Provided, That service providers may apply for adjustments to the tariff rates 
taking into consideration their actual and proposed expenditures in the construction, operation, 
and maintenance of their respective water, sewerage, and septage management systems. 
 
All applications for the imposition or adjustment of water and sewerage and septage 
tariffs, rates and charges shall be acted upon by the Commission within a period of four (4) 
months. If the Commission fails to issue a decision or resolution within said prescribed period, 
the application shall be deemed approved 
 
(h) Appraise and value property and equipment used by licensees in providing water 
supply and sanitation services and, for this purpose, develop a database for the value of the 
property and equipment used by the licensees in providing water supply and sanitation 
services by requiring each licensee to submit, on a periodic basis, an appraisal report covering 
such assets duly signed and sealed by an appraisal firm duly accredited by the Securities and 
Exchange Commission: Provided, That unless otherwise expressly warranted, the value of 
such property and equipment as determined by such independent appraisal firms shall be 
presumed a true and reasonable valuation thereof; 
 
(i)   Enforce technical, financial, and other performance standards set by the 
Commission for licensees or utilities; 
 
(j)   Respond to consumer complaints and ensure the adequate promotion of consumer 
interest and investigate motu propio violations of Sections 27, 28 and 29 of this Act; 
 
(k) 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; 


  
 
(l)   Require the review or approval of contracts or agreements that may impact on the 
tariff and rates of service provision entered into by service providers upon petition or motu 
propio wherein its determination public interest so dictates; 
 
(m) Require the submission of reports, plans, and other documents that define the 
performance targets of the licensees or utilities, and regular accomplishment reports; 
 
(n) Conduct benchmarking and monitor the performance of licensees or utilities under 
their jurisdiction, and publish reports detailing the results thereof; 
 
(o)   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 targets, 
including but not limited to service expansions, 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; 
 
(p) Appoint an interim management committee to ensure continuity of service in case 
a licensee, including those run by local government units, or local water districts, fails to meet 
the conditions of the license 
 
(q) Adopt and require that books, records, and accounts be kept and maintained in 
accordance with the prescribed uniform accounting system 
 
(r)   Fix and determine, for rate-setting purposes, the proper and adequate rates of 
depreciation of properties and equipment used in water supply and sanitation services; 
 
(s) Impose and collect annual levies and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers and functions of the Commission; 
 
(t)   Require the submission of reports on finances and operations, verified under oaths 
by the owner or president and secretary of the board of the licensee; 
 
(u) Determine and require the monitoring and submission of such data, statistics and 
other information from any or all licensees as may be necessary for the effective and efficient 
exercise of its duties, functions, powers and responsibilities. 
 
(v) Investigate, motu propio or upon a written complaint, any matter concerning the 
operation of the service and violations of Sections 28 and 29 and other provisions of this Act, 
including alleged inefficient or inappropriate performance of obligations by water service 
providers, and, after due process, render decisions thereon within one (1) year; 
 
(w)    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; 
 
(x)  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; 
 


  
(y) Advise, apprise and coordinate with other relevant agencies of the national or local 
government on any matter relating to water supply and sanitation services; 
 
(z)     Deputize agents, whether from the public or private sector, to assist in the 
performance of any of the powers and functions of the Commission; 
 
(aa)  Appoint an interim or temporary management committee upon appeal and after 
due hearing, to ensure continuity of service in case a licensee, including those run by local 
government units, or local water districts, fails to meet conditions of the license; 
 
(bb) Appoint, hire and maintain adequate staff and personnel, advisers, or consultants, 
with suitable qualifications and experience, as necessary; 
 
(cc)   Exercise original and exclusive jurisdiction over all cases involving disputes 
between and among participants or stakeholders in the water supply and sanitation services; 
 
(dd)  Issue rules and regulations on terms and conditions prescribing minimum and 
mandatory terms for concession agreements, joint venture agreements, management 
agreements, service contracts or other contractual arrangements that may be entered into by 
government entities including local water utilities and local government units and private sector 
entities or other water service providers for the provision of water or sanitation services, such 
as the (i) the term, scope and total cost of the activity, which may be subdivided into phases; 
(ii) committed contributions and corresponding performance security requirements in 
accordance with any agreed phased implementation of the activity; and (iii) cost recovery 
schemes and percentage of the parties’ share in the profits and losses, among others; 
 
(ee) Upon the recommendation of the Department, and after due notice and hearing, 
terminate or cancel water permits issued and outstanding as of the date of the effectivity of 
this Act to any government or private sector entities to ensure optimal and efficient use of 
water resources. The Commission shall principally rely on the prima facie findings of the 
Department, acting on the basis of information, records and reports submitted by any holders 
of such water permits as of the effectivity date of this Act, that the water resource covered by 
such water permits have not been substantially utilized or no substantial water works facilities, 
systems or other infrastructure has been constructed in pursuit thereof, in each case, for a 
period one (1) year from the date of issuance thereof, or if the water is used, totally or partially, 
for any purpose other than those approved in the water permit. The Commission shall decide 
on the recommendation for the Department within six (6) months from receipt of the 
recommendation. The Commission by itself may exercise this function 
 
(ff) Issue  rules,  guidelines,  procedures,  and  methodologies  for  the  determination  
of  the appropriate water and sewerage and septage management tariffs, rates and charges 
and review and confirm such tariff 
 
(gg)  Issue  rules,  guidelines,  procedures  and  methodologies  for  the  computation  
of  any adjustment of any approved water and sewerage and septage management tariffs, 
rates and charges based on the prevailing consumer price index or foreign exchange 
adjustments set by the appropriate national government agency, or any other factors 
customary in the water or sanitation industries which require adjustment or rebasing of the 
tariffs, which adjustment shall be implemented automatically subject to a thirty (30) day prior 
written notice to the Commission; 
 
(hh)  Determine the existence of any material adverse government action which has a 
material and adverse effect on any of the rights and privileges of, or on the enjoyment or 
exercise thereof by the licensees, or which has a material and adverse effect on the licensees’ 
ability to comply with their financial or other contractual obligations to provide water  or 


  
sanitation services, and determine the appropriate remedial measures therefor, which may 
include compensation or extension of permits or licenses; and 
 
(ii)    Perform such other incidental powers and functions as may be necessary to attain 
the objectives of this Act. 
 
SECTION 23. Composition of the 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. 
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, at least one (1) shall be a certified public 
accountant with at least ten (10) years of experience in active practice, and at least one (1) 
shall be a licensed engineer with experience in the water sector. 
 
(b)  The term of office of each member of the Commission shall be seven (7) years: 
Provided, That among the members first appointed, the Chairperson shall serve for a period 
of seven (7) years, two (2) members shall serve for five (5) years and the other two (2) 
members shall serve for three (3) years: Provided, further, That any member whose term has 
expired as specified herein shall serve as such until a successor shall have been appointed 
and qualified: Provided, furthermore, That any appointment  to  fill  a  vacancy  in  the  
Commission  arising  from  death,  removal,  retirement  or resignation shall be made only for 
the unexpired term: Provided, finally, That in no case shall any member serve for more than 
seven (7) years in the Commission. 
 
(c)  The Commission shall meet as often as may be necessary on such day or days as 
the Chairperson may fix. The presence of at least three (3) members of the Commission shall 
constitute a quorum, which shall be necessary for the transaction of any business. The 
affirmative vote of majority of the members of the Commission where a quorum is present 
shall be necessary for the adoption of any order, resolution, decisions, or other act of the 
Commission in the exercise of its quasi-judicial functions:  Provided, That in promulgating 
rules, regulations, guidelines and in exercising its quasi-legislative functions, an affirmative 
vote of three (3) members shall be required. 
 
(d)  The Chairperson of the Commission shall exercise general executive control and 
supervision over the Commission and its members, staff and personnel, agents and 
representatives. 
 
Within three (3) months from the creation of the Commission and the appointment of 
all Members of the Commission, the Chairperson shall determine and establish the 
organizational structure and plantilla positions necessary to carry out the powers and functions 
of the Commission subject to the review and approval of the Department of Budget and 
Management (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. 
 
SECTION 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) Maintain a database on the water supply and sanitation subsector; and 
 
(c) Coordinate with other relevant agencies of the national or local government on any 
matter relating to water supply and sanitation. 
 
SECTION 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 or other members of the Commission. 
 
SECTION 26. Compensation and Other Emoluments. – The compensation of the members 
of the Commission and its staff shall conform to the provisions of RA 6758, as amended, 
otherwise known as the Compensation and Position Classification Act of 1989, as amended, 
and other relevant laws. 
 
 
CHAPTER VI 
REGISTRATION AND LICENSING 
 
SECTION 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 its rules, guidelines, procedures and other issuances of the 
Commission, obtain a license to operate from the appropriate regulatory units: Provided, That 
the Commission shall act on the application for the issuance or the conversion of such licenses 
and renewals thereof within the maximum period of one (1) year as provided under this Act or 
by RA 11032, otherwise known as the Ease of Doing Business and Efficient Government 
Service Delivery Act of 2018. 
 
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. 
 
Concession agreements, joint venture agreement, bulk water supply agreements, 
management and service 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. Until the issuance of new or converted or updated 
registrations, licenses or permits, as contemplated under this Act, such existing concession 
agreements, joint venture agreements, bulk water supply agreements, management and 
service agreements and other contracts for water supply provision or water sanitation 
treatment services shall serve as the license or other legal basis for the authority to engage in 
water supply or sanitation services during the term thereof. 
 
SECTION 28.   Conditions of License. – The Commission 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; and 
 
(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 CoC issued by LWUA, to convert their existing 
certificates into licenses to operate in accordance with Section 27 hereof. 
 
To ensure continuity of water and sanitation services, a CPC, CPCN, provisional 
authority or a CoC issued by NWRB or the LWUA prior to the effectivity of this Act shall remain 
valid for a period of five (5) years counted from the later of the date of issuance thereof or the 
date of effectivity of the implementing rules and regulations duly issued by the Commission 
for the conversion thereof into licenses to operate in accordance with this Act. 
 
All local water utilities, existing water service providers or holders of CPCN or CoC 
shall be duly prioritized in the issuance of the licenses to operate over the areas where they 
currently operate or as may be covered by their franchises. The submission of the CPC, 
CPCN, provisional authority, or the CoC issued by the NWRB or LWUA shall be sufficient 


  
basis for the issuance of the new and converted or  updated  licenses  to  operate  required  
and  contemplated  under  this  Act. To ensure continuity of service, the Commission shall 
complete the issuance of such converted or updated licenses not later than six (6) months 
from the effectivity of the implementing rules and regulation issued by the Commission 
pursuant to this Act. 
 
All existing providers of water supply and sanitation services without a legal and valid 
CPC, CPCN, provisional authority or CoC shall register with the Commission for a license 
within six (6) months from the effectivity of this Act. 
                      
SECTION 29. Rights and Duties of Licensees. – 
 
(a) Any person granted a license under this Act shall have the obligation to ensure that 
licensed activities are conducted to further public interest and, in particular: 
 
(1) Foster the maintenance and development of efficient, coordinated, and 
viable operation of their licensed activities; 
 
 (2)  Ensure that  their  water  supply  and  sanitation  services  are  provided  
in  a  diligent, conscientious and workman like manner, in accordance with applicable 
laws, rules, and regulations issued by the Commission and the generally accepted 
standards and practices of the water supply and sanitation industry; and 
 
(3) Comply with drinking water quality requirements and standards that may be 
established by the Commission, and the DOH. 
 
(b) Any person granted a license under this Act shall, to the extent allowed by law and 
specified in the license, has the right to acquire or lease land, lay or repair water or sanitation 
main lines and other relevant facilities in public ways to fulfill the terms and conditions under 
the license. 
 
(c)  Subject to any condition or limitation laid down in the license, a licensee may 
discontinue water supply and sanitation services to a customer if such customer defaults in 
the payment of fees due to the licensee for the water supplied or sanitation services provided, 
or for acts of pilferage pursuant to Sections 8, 9, 10, and 11 of RA 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 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. 
 
SECTION 30. Setting Tariffs, Rates, and Other Charges. – With due regard to the 
standardized pricing framework developed by the Department pursuant to Section 7(h) of this 
Act, the Commission shall establish tariffs, rates and other charges which are fair and 
reasonable, and ensure economic viability and a fair return on investments. 
 
Service providers may apply for the setting of tariffs, rates and charges based on and 
consistent with a rate-setting methodology that the Commission shall, after due consultation, 
define and publish, taking into account the following, among others: 
 
(a)  Reasonable and prudent capital and recurrent costs of providing the service 
including a reasonable rate of return on capital; 
 
(b)  Efficiency of the service; 
 
(c)  Incentives for enhancement of efficiency; 
 
(d)  Capacity to pay of the customers/consumers; 
 
(e)  Equity considerations; 
 
(f)   Administrative simplicity; 
 
(g)  In cases involving valid and subsisting concession agreements prior to the 
enactment of this Act, the methodology provided under the Concession Agreement; 
 
(h)  Compliance with obligations as set out under pertinent laws, jurisprudence, and, 
in cases involving valid and subsisting concession agreements prior to the enactment of this 
Act, the provisions of the Concession Agreement; and 
 
(i)   To the fullest extent practicable, the terms and conditions of the tariffs, rates or 
other price-setting mechanisms set forth in any concession agreement, joint venture 
agreement or other similar agreement for the provision of water or sanitation services by an 
existing service provider. 
 
Tariffs, rates and charges set shall be presumed valid and reasonable unless 
invalidated by the Commission, after  due  notice  and  hearing,  acting  on  a  protest  or  
contest  duly  filed  with  the Commission to ensure continuity of service, application for setting 
of tariffs, rates and other charges shall be decided within a non-extendible period of ninety 
(90) days from the date of filing thereof, and the failure of the Commission to act on any such 
applications shall result in a provisional approval: Provided, That in no case shall proceedings 
on any applications for the setting of tariffs, rates and other charges exceed to a total period 
of one hundred twenty (120) days reckoned from the date of filing of the application. 
 
SECTION 31.  Direct Access. – Fifty-one percent (51%) of the registered water consumers 
in a service area, municipality, city or province may petition for direct access to water from any 
water service provider subject to concurrence by and reasonable compensation to the service 
provider and approval by the Commission. If the petition for direct access from any water 
service provider is approved by the Commission, the new water service provider shall 
reimburse the existing service provider for, as applicable, either the book value or the market 
value as determined by an independent appraiser accredited by the Commission, whichever 
is higher, of the water source, water supply or water distribution or transmission facilities, 
pipelines and other equipment which shall be transferred to or utilized by the new water service 


  
provider. The Commission shall promulgate the implementing rules and procedures for this 
mode of service, which shall include, among others, financial and technical capability of the 
new service provider. 
 
SECTION 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 VII 
QUASI-JUDICIAL FUNCTIONS OF THE COMMISSION 
 
SECTION 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; 
and 
(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. 
 
SECTION 34. Orders and Decisions of the Commission. – Any order, resolution, or 
decision of the Commission shall be promulgated promptly, expeditiously, reasonably, and in 
writing, and shall state clearly and distinctly the facts and law on which it is based. The 
Commission shall publish and make available for public inspection, all decisions and final 
orders in the adjudication of contested cases or applications. 
 
SECTION 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 VIII 
INTERDEPARTMENTAL RELATIONS OF THE COMMISSION 
 
SECTION 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 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)  PCC for the provision of its technical advisory services in the exercise of 
the exclusive authority and jurisdiction of the Commission to investigate and act on any 
market power abuse or anti-competitive or discriminatory act or behavior by or against 
any participant in the water supply and sanitation sector. 
 
 
CHAPTER IX 
TRANSITORY PROVISIONS 
 
SECTION 37. Organizational Structure and Staffing Pattern. – The Secretary of the 
Department and the Chairperson of the Commission shall determine the respective 
organizational structure and staffing pattern of the Department and the Commission in 
accordance with the revised compensation and position classification system subject to the 
evaluation and approval of the Department of Budget and Management and in compliance 
with the civil service laws, rules and regulations and other relevant laws. 
 
SECTION 38. Transfer of Rights and Functions. – The Department shall, by virtue of this 
Act be subrogated to all the rights and assume all the functions of the government agencies 
and units whose powers and functions have been subsumed, absorbed, transferred or 
attached to the Department. The Commission shall also, by virtue of this Act, be subrogated 
to all the rights, and assume all the functions, of the Water Utilities Division of the NWRB, the 
regulatory offices of MWSS and LWUA, 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 in accordance with the rules and regulations of the Civil Service 
Commission (CSC) 
 
The transfer of powers and functions to the Department or the Commission of the 
concerned agencies as herein provided for, shall be deemed completed within twelve (12) 
months after the effectivity of this Act.  All agencies transferred, subsumed and attached to 
the Department or Commission shall continue to function under their present mandates until 
the six-month transition period mandated under this Act shall have lapsed. The transfer of 
powers and functions shall include all applicable funds, personnel, records, property and 
equipment, as may be necessary.  The heads of the affected agencies shall continue to serve 
until replaced. 
 
All rights and functions of the affected agencies are hereby transferred to and assumed 
by the Department or 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. 


  
 
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. 
 
SECTION 39. Absorption, Separation or Retirement from Service of Employees of the 
Subrogated Agencies. – The current employees of all government agencies and units whose 
powers and functions have been transferred to, absorbed or subsumed by the Department or 
Commission shall enjoy security of tenure, in accordance with their staffing pattern and the 
selection process as prescribed under 
       
RA 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. 
 
 
CHAPTER X 
FINAL PROVISIONS 
 
SECTION 40. Applicability of Ease of Doing Business Law. – The prescribed processing 
time provided under Section 9(b) of RA 11032 shall be applicable to all agencies and LGUs 
covered under this Act particularly on accessing government services. 
 
SECTION 41. Appropriations. – The amount necessary for the initial implementation of this 
Act shall be charged against the current year’s appropriations of the agencies, entities, 
divisions, sections or units subsumed or transferred to the Department. Thereafter, such 
amount shall be included in the annual General Appropriations Act. 
 
SECTION 42. Water Trust Fund. – There is hereby created a Water Trust Fund in the Bureau 
of Treasury sourced from raw water pricing, permit fees, registration fees, supervision and 
regulation enforcement fees, filing fees, testing fees, payments for ecosystem services, and 
other service income from the use of water resources. The Trust Fund shall be administered 
by the Department. The annual levies, and reasonable fees and surcharges as may be 
necessary for achieving the purposes, powers and function of the Commission under Section 
22(f) of this Act shall also be remitted to the Water Trust Fund. 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 proceeds generated from raw 
water extraction and all payments for ecosystem services 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: Provided, further, That the Department shall 
prescribe standards for programs and projects where proceeds from payments for ecosystem 
services shall be utilized. 
 
SECTION 43.  Implementing Rules and Regulations.  –  Upon the  effectivity  of  this  Act,  
the Department and the Commission, as may be applicable, as well as NEDA, DBM, DENR, 
CSC, and  the  National  Commission  on  Indigenous  Peoples  in  consultation  with  
concerned  government agencies shall: 
 
(a)  Promulgate the rules and regulations of the Department and the Commission 


  
necessary for the effective implementation of this Act within one hundred twenty (120) days 
after its effectivity; and 
 
(b)  Submit to the DBM the Department’s and the Commission’s budget for fiscal year 
following the promulgation of its implementing rules and regulations; and implement the 
training of the personnel of the Department and the Commission. 
 
SECTION 44. Mandatory Review of the Implementation of this Act. – The Department and 
the Commission shall conduct a review of the implementation of this Act at the end of the fifth 
(5th) year from the date of its effectivity and submit a report to Congress. 
 
SECTION 45. Separability Clause. – If any reason, any portion or provision of this Act shall 
be held unconstitutional or invalid, the remaining provisions not affected thereby shall continue 
to be in full force and effect. 
 
SECTION 46. 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 RA 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)  Section 62, 63, and 66 of 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, series of 1978, Letter of 
Instruction No. 744, Series of 1978, EO 124, Series of 1987, EO 123, Series of 2002, 
and EO 860, Series of 2010, on the regulation of water districts; 
 
(3)  Section 1 of EO 124-A Series of 1987, amending EO 124, dated 30 January 
1987, Reorganizing the Department of Public Works and Highways, Redefining Its 
Powers and Functions, and For Other Purposes on reorganizing the National Water 
Resources Council into the National Water Resources Board; 
 
(4) EO 510 series of 2006 creating the RBCO, and EO 516 series of 2009 
declaring the RBCO under the DENR as lead government agency for the integrated 
planning, management, rehabilitation, and development of the country’s river basins; 
and 
(5)  EO 22, Series of 2023 creating the Water Resources Management Office 
of the DENR 
 
(b)   The following provisions are hereby amended accordingly: 
 
(1)  Section 3 paragraph 3 Commonwealth Act No. 146, as amended, 
pertaining to all cases involving the fixing of rates; 
 
(2)  Section 154, Article V, Chapter I, Title One, Book II of RA 7160, as 
amended, otherwise known as the “Local Government Code of 1991”, and its 
implementing rules and regulations on the power of the LGUs to fix the rates of water 
utilities owned, operated and maintained by them within their jurisdiction is hereby 
repealed or modified accordingly; 


  
 
(3)  Section 13(b) on the regulation of enterprises within the Economic Zone 
under RA 7916 as amended, otherwise known as “The Special Economic Zone Act of 
1995”; 
 
(4) Section 69 of RA 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 of RA 9275, transferring the administration of the NSSMP from 
the DPWH to the Department; 
 
(6) Articles 3(d) and Chapters VII and VIII of PD 1067 pertaining to the 
enforcement of the Water Code;  
 
(7) Section 15 (Conditions in Permits) of the Implementing Rules and 
Regulations (IRR) of PD 1067;  
 
(8) Section 3.2(b) EO 149, Series of 1993 transferring the Laguna Lake 
Development Authority from the Office of the President to the DENR; and  
 
(9) EO 168, Series of 2022, which transferred the National Irrigation 
Administration from the Office of the President to the DA. 
 
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.  
 
SECTION 47. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation.  
 
 
Approved,