The Local Water Utilities Administration, more commonly referred to as LWUA, is a

government-owned and controlled corporation (GOCC) with a specialized lending function

mandated by law to promote and oversee the development of water supply systems in
provincial cities and municipalities outside of Metropolitan Manila.

Sec. 49. Purposes. - The purposes for which the Administration is created are: (1) to
establish minimum standards and regulations in order to assure acceptable standards of
construction materials and supplies, maintenance, operation, personnel, training, accounting
and fiscal practices for local water utilities; (2) to furnish technical assistance and personnel
training programs for local water utilities; (3) to monitor and evaluate local water
standards; (4) to effect system integration, joint investment and operations district
annexation and deannexation whenever economically warranted; and (5) to provide a
specialized lending institution with peculiar expertise in the financing of local water utilities.

Sec. 62. Regulations. - Administration shall have the power and duty to establish standards for local
water utilities, and adopt rules and regulations for the enforcement thereof. The Administration shall
vigorously consult and coordinate its actions with all governmental agencies active in the areas of
public works and all other concerned agencies in the promulgation of these standards. Said standards
and regulations shall include the following:

(a) Water Quality. Minimum drinking water standards including a uniform testing and reporting
system. Said Standards shall include bacteriological, chemical and physical parameters;

(b) Design and Construction. Minimum criterial for the design and construction of new or additional
facilities for water supply, treatment, transmission and distribution, and for wastewater collection,
treatment and disposal;

(c) Equipment, Materials and Supplies. Standards for the optimum selection and effective utilization of
equipment, materials and supplies by local water and sewer utilities;

(d) Operations and Maintenance. Standardized procedures for operating and maintaining equipment
and facilities;

(e) Personnel. The training of personnel who operate or manage local water utilities;

(f) Organization. Organizational and institutional criteria to assure independent operation and funding
of local water utilities;

(g) Accounting. A uniform accounting system with uniform chart of accounts. Said standards and
regulations also shall include stipulated levels of internal reporting to local water utility management.

LWUA was created through Presidential Decree No. 198, also known as The Provincial
Water Utilities Act of 1973, which was signed into law on May 25, 1973.

The law that created LWUA in the national level also provided for the establishment of
Water Districts in provincial cities and municipalities. Thus would be put into motion a
development partnership called the LWUA-Water District Concept that would revolutionize
water supply provision in the countryside.
LWUA is the only lending institution whether in the public or private sector with
the financial, technical and institutional development competence to enable a water
districts water supply project to generate return-on-investments.

LWUA since 1973 has been financing water supply projects through funds secured
from national government subscriptions, bilateral and multilateral fund sources, and
from internally-generated funds and second generation funds.

The LWUA know-how also includes the determination and implementation of socially
responsive and financially viable water rates, and tariff review to determine its
adequacy to meet WD expansion needs.

NWRB
Sec. 5. Water Quality Management Area. - The Department, in coordination with
National Water Resources Board (NWRB), shall designate certain areas as water
quality management areas using appropriate physiographic units such as
watershed, river basins or water resources regions. Said management areas shall
have similar hydrological, hydrogeological, meteorological or geographic
conditions which affect the physiochemical, biological and bacteriological
reactions and diffusions of pollutants in the water bodies, or otherwise share
common interest or face similar development programs, prospects or problems.

Said management area shall be governed by a governing board composed of

representatives of mayors and governors of member local government units
(LGUs), and representatives of relevant national government agencies, duly
registered non-governmental organization, water utility sector, and business
sector. The Department representative shall chair the governing board. In the case
of the LGUs with memberships on more than one (1) management board, the LGU
shall designate only one (1) single representative for all the management areas
wherein is a member.

The NWRB's functions and responsibilities are three-fold.

Formulation and coordination of policies, programs and standards relating to the Philippine Water
Sector;
Management and regulation all water-related activities; and
2) Rules and regulation for the exploitation and optimum utilization of water resources,
including the imposition on water appropriators of such fees or charges as may be
deemed necessary by the Council for water resources development;
d. Review and approve water resources development plans and programs of any agency
within the context of the overall naational plans and program;
e. Undertake river basin survey, inventory and appraisal of water and related resources
and develop comprehensive basinwide plans of storage and control to maximize the
conservation and multi-purpose use of water in the basin;
f. Undertake hydrologic surveys and establish, operate and maintain observation station
networks and a centralized water resources data center necessary for the scientific
survey and appraisal of surface and ground water potentials of the country; and
g. Conduct and/or promote special studies and researches with other government or
private agencies on all related aspects of water resources development such as
weather modification, environmental quality, desalination and the like.

Regulation and monitoring of water utilities.

SECTION 1. The Water Resources Committee under Article XI, Chapter I, Part X of the
Integrated Reorganization Plan shall be renamed National Water Resources Council,
hereinafter called the Council, and attached to the Department of Public Works,
Transportation and Communication (DPWTC).

SECTION 2. The Council shall have the following functions, duties and powers:

A. Regulatory and Executory

a. Coordinate and integrate, on a sound anad logical basis, water resources development
activities of the country within the context of national plans anad policies for social
and economic development;
b. Determine, adjudicate, and grant water rights amending, for this purpose, Act No.
2152, and other laws relating to the appropriation and utilization of surface and
ground water;
c. Formulate and promulgate:
1) General criteria, methods, and standards for basic data collection, project
investigation, formulation, planning and design, and feasibility evalution; and
SECTION 1. The Water Resources Committee under Article XI, Chapter I, Part X of the
Integrated Reorganization Plan shall be renamed National Water Resources Council,
hereinafter called the Council, and attached to the Department of Public Works,
Transportation and Communication (DPWTC).

SECTION 2. The Council shall have the following functions, duties and powers:

A. Regulatory and Executory

a. Coordinate and integrate, on a sound anad logical basis, water resources development
activities of the country within the context of national plans anad policies for social
and economic development;
b. Determine, adjudicate, and grant water rights amending, for this purpose, Act No.
2152, and other laws relating to the appropriation and utilization of surface and
ground water;
c. Formulate and promulgate:
1) General criteria, methods, and standards for basic data collection, project
investigation, formulation, planning and design, and feasibility evalution; and

SECTION 3. The Council shall be composed of the following:

Secretary, Department of Public Works, Transportation Chairman

and Communications

Secretary, Department of Agriculture and Natural Member

Resources, or his Undersecretary

Director General, National Economic & Development Member

Authority, or his Deputy

Administrator, National Irrigation Administration Member

General Manager, National Power Corporation Member

Director, Bureau of Public Works Member

Provided, that the National Economic and Development Authority, in the exercise of its
sound discretion, may increase or decrease the membership of the Council.