Presidential Decree No.

1067
WATER CODE OF THE PHILIPPINES

BACKGROUND:
Presidential Decree No. 1067, otherwise known as the Water Code of the Philippines,
was issued on December 31, 1976.
The Water Code has repealed the following provisions of the Civil Code:
 Articles 502-503: Ownership of Waters
 Articles 504-506: Use of Public Waters
 Articles 507-511: Use of Waters of Private Ownership
 Articles 512-514: Subterranean Waters
 Articles 515 – 518: General Provisions
Thus, the Water Code is now considered as the basic law governing the ownership,
appropriation, utilization, exploitation, development, conservation, and protection of water
resources and rights thereto.
This law recognizes the vital role of the waters to national development. Likewise, the
law considers the increasing necessity of government intervention in improving the
management of water resources through rational concepts and multi-purpose management
which must be sufficiently flexible to meet future developments.

OBJECTIVES: (ARTICLE 2, PD 1067)

The objectives of this Code are:
(a) To establish the basic principles and framework relating to the appropriation, control and
conservation of water resources to achieve the optimum development and rational utilization of
these resources;
(b) To define the extent of the rights and obligations of water users and owners including the
protection and regulation of such rights;
(c) To adopt a basic law governing the ownership, appropriation, utilization, exploitation,
development, conservation and protection of water resources and rights to land related thereto;
and
(d) To identify the administrative agencies which will enforce this Code.

UNDERLYING PRINCIPLES: (ARTICLE 3, PD 1067)

The underlying principles of this code are:
(a) All waters belong to the State.
(b) All waters that belong to the State cannot be the subject to acquisitive prescription.
(c) The State may allow the use or development of waters by administrative concession.
(d) The utilization, exploitation, development, conservation and protection of water resources
shall be subject to the control and regulation of the government through the National Water
Resources Council, hereinafter referred to as the Council.
(e) Preference in the use and development of waters shall consider current usages and be
responsive to the changing needs of the country.
 Waters, as used in this Code, refers to water under the grounds, water above the
ground, water in the atmosphere and the waters of the sea within the territorial jurisdiction of the
Philippines. (Article 4, PD 1067)

STATE OWNERSHIP OF WATERS: (ARTICLES 5 AND 6, PD 1067)

The following belong to the State:
(a) Rivers and their natural beds;
(b) Continuous or intermittent waters of springs and brooks running in their natural beds and the
beds themselves;
(c) Natural lakes and lagoons;
(d) All other categories of surface waters such as water flowing over lands, water from rainfall
whether natural, or artificial, and water from agriculture runoff, seepage and drainage;
(e) Atmospheric water;
(f) Subterranean or ground waters; and,
(g) Seawater.

The following waters found on private lands belong to the State:

(a) Continuous or intermittent waters rising on such lands;
(b) Lakes and lagoons naturally occuring on such lands;
(c) Rain water falling on such lands;
(d) Subterranean or ground waters; and,
(e) Water in swamps and marshes

The owner of the land where the water is found may use the same for domestic
purposes without securing a permit, provided that such use shall be registered, Council. The
Council, however, may regulate such use when there is (1) wastage, or (2) in times of
emergency (Article 6, PD 1067). Any person who captures or collects water by means of
cisterns, tanks or pools shall have exclusive control over such water and the right to dispose of
the same (Article 7, ibid).

DEFINITION OF TERMS: (Black’s Law Dictionary)

 River - A natural stream of water, of greater volume than a creek or rivulet, flowing in a
more or less permanent bed or channel, between defined banks or walls, with a current
which may either be continuous in one direction or affected by the ebb and flow of the
tide.
 Navigable River – a river which is used, or is susceptible of being used, in their ordinary
condition as highways for commerce over which trade and travel are or may be
conducted in the customary modes of travel and trade on water.
 Navigable Waters – those waters which afford a channel for useful commerce.
 River Banks – the boundaries which confine the water to its channel throughout the
entire width when stream is carrying its maximum quantity of water.
 Creek – a small stream less than a river. The term imports a recess, cove, bay, or inlet in
the shore of a river, and not a separate or independent stream; though it is sometimes
used in the latter meaning. 
 Lake – a considerable body of standing water in a depression of land or expanded part
of a river. An inland body of water or naturally enclosed basin serving to drain
 surrounding country; or a body of water of considerable size surrounded by land; a
widened portion of a river or lagoon.

APPROPRIATION OF WATERS
Appropriation of water is the acquisition of rights over the use of waters or the taking or
diverting of waters from a natural source in the manner and for any purpose allowed by law
(Article 9, PD 1067)
Water may be appropriated for the following purposes: (Article 10, PD 1067)
1. Domestic
2. Municipal
3. Irrigation
4. Power generation
5. Fisheries
6. Livestock raising
7. Industrial
8. Recreational, and
9. Other purposes
 Domestic – is the utilization of water for drinking, washing, bathing, cooking or other
household needs, home gardens, and watering of lawns or domestic animals
 Municipal – is the utilization of water for supplying the water requirements of the community
 Irrigation – is the utilization of water for producing agricultural crops
 Power generation – is the utilization of water for producing electrical or mechanical power
 Fisheries – is the utilization of water for the propagation and culture of fish as a commercial
enterprise
 Livestock raising – is the utilization of water for large herds or flocks of animals raised as a
commercial enterprise
 Industrial – is the utilization of water in factories, industrial plants and mines, including the
use of water as an ingredient of a finished product
 Recreational and – is the utilization of water for swimming pools, both houses, boating, water
skiing, golf courses and other similar facilities in resorts and other places of recreation
 Other purposes

WATER RIGHTS AND PERMITS

Water right is the privilege granted by the government to appropriate and use water. On
the other hand, water permit is a document evidencing water right.

General Rule: No person, including government instrumentalities or government-owned

corporations, shall appropriate water without a water right, which shall be evidenced by a
document known as a water permit.

Furthermore, Section 1of the Implementing Rules and Regulations provides that a
permit/authority shall be secured from the Council in the following instances:
a) Appropriation of water for any purpose
b) Change in purpose of the appropriation;
c) Amendment of an existing permit/authority, such as change in point or nature of
diversion, amount of appropriation, period of use, etc.;
d) Transfer or lease of water right;
e) Temporary appropriation and use of water;
f) Developing a stream, lake, or spring for recreational purposes;
 g) Lowering or raising the level of the water of a lake, river or marsh, or draining the
same;
h) Transbasin diversion;
i) Dumping of mine tailings or wastes into a river or a waterway,
j) Such other instances that will require a permit/authority as determined by the Council.

Exception: Any person may appropriate or use natural bodies of water without securing a water
permit for any of the following:
1. Appropriation of water by means of hand-carried receptacles; and
2. Bathing or washing, watering or dipping of domestic or farm animals, and navigation of
watercrafts or transportation of logs and other objects by floatation.

Application for Water Permit

General Rule: (Section 2, IRR)
Only the following may file an application with the Council for permit/authority:
a) Citizens of the Philippines;
b) Associations, duly registered cooperatives or corporations organized under the laws
of the Philippines, at least 60 percent of the capital of which is owned by the citizens of
the Philippines;
c) Government entities and instrumentalities, including governmentowned and controlled
corporations.

Can foreigners apply for a water permit?

(Illustrative case: IDEALS, Inc vs PSALM, GR No. 192066, October 9, 2012)
Facts:
PSALM is a government-owned and controlled corporation created under “Electric
Power Industry Reform Act of 2001” (EPIRA). PSALM is mandated to manage the orderly sale,
disposition, and privatization of NPC generation assets, real estate and other disposable assets,
and Independent Power Producer (IPP) contracts.
On 2005, PSALM commenced the privatization of the 246-megawatt hydro electric
power plant located in San Lorenzo, Norzagaray, Bulacan, which will form part of the Angat
Complex which includes the Angat Dam, Angat Reservoir and the outlying watershed area.
On 2009, PSALM’s Board of Directors approved the Bidding Procedures for the
privatization of the Hydro Electric Power Plant. An Invitation to Bid was published in three major
national newspapers. After a post-bid evaluation, PSALM approved and confirmed the issuance
of a Notice of Award to the highest bidder, K-Water.
Contention of the petitioner:
That the participation in the bidding of and award of contract to K-Water which is a
foreign corporation, PSALM clearly violated the constitutional provisions on the appropriation
and utilization of water as a natural resource, as implemented by the Water Code of the
Philippines limiting water rights to Filipino citizens and corporations which are at least 60%
Filipino-owned.

Issue:
Whether PSALM violated Sec. 2, Art. XII of the Constitution and the Water Code
provisions on the grant of water rights?

Ruling:
It is clear that the law limits the grant of water rights only to Filipino citizens and juridical
entities duly qualified by law to exploit and develop water resources, including private
corporations with sixty percent of their capital owned by Filipinos.
 Under the Water Code concept of appropriation, a foreign company may not be said to
be “appropriating” our natural resources if it utilizes the waters collected in the dam and
converts the same into electricity through artificial devices. Since the NPC remains in control of
the operation of the dam by virtue of water rights granted to it, there is no legal impediment to
foreign-owned companies undertaking the generation of electric power using waters already
appropriated by NPC, the holder of water permit. Such was the situation of hydropower projects
under the BOT contractual arrangements whereby foreign investors are allowed to finance or
undertake construction and rehabilitation of infrastructure projects and/or own and operate the
facility constructed. However, in case the facility requires a public utility franchise, the facility
operator must be a Filipino corporation or at least 60% owned by Filipino.
“While the Water Code imposes a nationality requirement for the grant of water permits,
the same refers to the privilege ‘to appropriate and use water’. This should be interpreted to
mean the extraction of water from its natural source (Article 9, PD No 1067). Once removed
therefrom, they cease to be a part of the natural resources of the country and are the subject of
ordinary commerce and may be acquired by foreigners. In case of contract of lease, the water
permit shall be secured by the lessor and included in the lease as an improvement. The water
so removed from the natural source may be appropriated or used by a foreign corporation.”

Where to file? (Section 3, IRR)

Any application for permit/authority shall be filed with the: (a) Office of the Public Works
District Engineer, (b) the NIA Provincial lrrigation Engineer, (c) NPC Regional Managers; OR
(c) the LWUA Water District General Manager whichever is designated as agent by the Council
in the province where the point of diversion is situated.

Filing of Application (Article 16, PD 1067)

Any person who desires to obtain a water permit shall file an application with the Council
who shall make known said application to the public for any protests. In determining whether to
grant or deny the application, the Council shall consider the following:
a. Protests filed, if any;
b. Prior permits granted;
c. Availability of water;
d. Water supply needed for beneficial use;
e. Possible adverse effects;
f. Land-use economics;
g. Other relevant Factors;
Upon approval of an application, a water permit shall be issued and recorded.

When is the right to the use of water deem acquired? (Article 17, PD 1067)
The right to the use of water is deemed acquired as of the date of filing of the application
for a water permit in case of approved permits, or as of the date of the actual use in a case
where no permit is required.

What happens after the application for water permit has been approved?
General Rule: After the application for water permit has been approved, the grantee of the
permit now acquires an exclusive right to use the water source, reckoned from the date of the
filing of the application. Thus, after the grantee’s permit has been properly adjudicated, it can no
longer be questioned.
Exception: When there is an interested party who files his protest thereto. In such case, the
application may be properly evaluated first.

Conditions
 All water permits granted shall be subject to conditions of (a) beneficial use, (b)
adequate standards of design and construction, and (c) such other terms and conditions as may
be imposed by the Council (Article 18, PD 1067)
Such permits shall specify: (ibid)
1. the maximum amount of water which may be diverted or withdrawn,
2. the maximum rate of diversion or withdrawal,
3. the time or times during the year when water may be diverted or withdrawn,
4. the points or points of diversion or location of wells,
5. the place of use,
6. the purposes of which water may be used and;
7. other requirements the Council deems desirable.

The measure and limit of appropriation of water shall be beneficial use. Beneficial use of
water is the utilization of water in the right amount during the period that the water is needed for
producing the benefits for which the water is appropriated (Article 20, PD 1067)
Water permit applications filed for any purpose shall be accompanied by a Certificate of
tree planting, survival, or completion as the case may be in the name of the applicant (Section
5, par. D, IRR).

May the water rights be leased or transferred? (Article 19, PD 1067)

Yes. Water rights may be leased or transferred in whole or in part to another person,
provided, that there is a prior approval of the Council, after due notice and hearing.
Furthermore, Section 5 of the Implementing Rules and Regulations provides that,
- For Transfer of a Water Permit - Applications for the transfer of a water permit from one
person to another shall include the reasons for the transfer.
- For Lease of a Water Permit - Applications for the lease of a water permit to another
person shall be accompanied by a duly executed contract of lease subject to the
approval of the Council. No contract of lease shall be for a continuous period exceeding
five (5) years; otnerwise the contract shall be treated as a transfer of permit in favor of
the lessee.

May a holder of a water permit demand the establishment of easements? (Article 25, PD 1067)
A holder of a water permit may demand the establishment of easements necessary for
the construction and maintenance of the works and facilities needed for the beneficial use of the
waters to be appropriated, subject to the requirements of just compensation and to the following
conditions:
1. That he is the owner, lessee, mortgagee or one having real right over the land upon
which he proposes to use water; and
2. That the proposed easement is the most convenient and the least onerous to the
servient estate.

Easements relating to the appropriation and use of waters may be modified by

agreement of the contracting parties provided the same is not contrary to law or prejudicial to
third persons.

Suspension of Water Permits (Article 28, PD 1067)

General Rule: Water permits shall continue to be valid as long as water is beneficially used;
However, it may be suspended on the grounds of:
1. Non-compliance with approved plans and specifications or schedules of water
distribution;
2. Use of water for a purpose other than that for which it was granted;
 3. Non-payment of water charges;
4. Wastage;
5. Failure to keep records of water diversion, when required; and
6. Violation of any term or condition of any permit or
7. Violation of rules and regulations promulgated by the Council.

However, temporary permits may be issued under special circumstances. Section 26 of

the implementing Rules and Regulations provides that the Council may grant temporary permits
for the appropriation and use of water in situations such as the following:
a) Irrigation of an area pending the construction of a larger system to be operated either
by the government or by any irrigation association which will serve said area. Such
permit shall automatically expire when water becomes available for the area from the
larger system. In cases where the supply from the larger system is not adequate, the
permit may be modified accordingly.
b) When there is need to use water for municipal purposes in emergency situations
pending the availability of an alternative source of supply as provided in Article 22 of the
Code;
c) For special research projects requiring the use of water for certain periods of time;
d) For temporary use of water needed for the construction of roads, dikes, buildings, and
other infrastructures; and
e) When there are unforeseen delays in the approval of the application and appropriation
of water is necessary pending the issuance of a water permit, unless the application is
protested.
Temporary permits shall be granted by the Council on a case to case basis specifying
the conditions and period under which the permit is valid.

Revocation of Water Permits (Article 29, PD 1067)

Water permits may be revoked after due notice and hearing on grounds of:
1. Non-use;
2. Gross violation of the conditions imposed in the permit;
3. Unauthorized sale of water;
4. Willful failure or refusal to comply with rules and regulations or any lawful order;
5. Pollution;
6. Public nuisance; or
7. Acts detrimental to public health and safety;
8. When the appropriator is found to be disqualified under the law to exploit and develop
natural resources of the Philippines;
9. When, in the case of irrigation, the land is converted to non-agricultural purposes; and
10. Other similar grounds.

ORDER OF PREFERENCE, UTILIZATION, AND CONDITIONS FOR THE USE OF WATERS

Order of Preference (Article 95, PD1067)

When priority in time of appropriation from a certain source of supply cannot be
determined, the order of preference in the use of the waters shall be as follows:
(a) Domestic and municipal use
(b) Irrigation
(c) Power generation
(d) Fisheries
(e) Livestock raising
 (f) Industrial use, and
(g) Other uses.

Utilization of Waters
Preference in the development of water resources shall consider: (Article 31, PD 1067)
1. security of the State,
2. multiple use,
3. beneficial effects,
4. adverse effects and
5. costs of development

The utilization of subterranean or ground water shall be coordinated with that of surface
waters such as rivers, streams, springs and lakes, so that a superior right in one not adversely
affected by an inferior right in the other (Article 32, PD 1067)
For this purpose the Council shall promulgate rules and regulations and declare the
existence of control areas for the coordinated development, protection, and utilization of
subterranean or ground water and surface waters (ibid).
Control area is an area of land where subterranean or ground water and surface water
are so interrelated that withdrawal and use in one similarly affects the other. The boundary of a
control area may be altered from time to time, as circumstances warrant (ibid).

Water contained in open canals, aqueducts or reservoirs of private persons may be used
by any person for domestic purpose or for watering plants as long as the water is withdrawn by
manual methods without checking the stream or damaging the canal, aqueduct or reservoir;
Provided, That this right may be restricted by the owner should it result in loss or injury to him
(Article 33, PD 1067).

Prohibitions and Conditions for Use of Waters

1. No excavation for the purpose of emission of a hot spring or for the enlargement of the
existing opening thereof shall be made without prior permit. Any person or agency who
intends to develop a hot spring for human consumption must first obtain a permit from
the Department of Health (Article 40, PD 1067).

2. No person shall develop a stream, lake, or spring for recreational purposes without first
securing a permit from the Council. (Article 41, PD 1067).

3. Unless-otherwise ordered by the President of the Philippines and only in time of national
calamity or emergency, no person shall induce or restrain rainfall by any method such as
cloud seeding without a permit from the proper government emergency (Article 42, PD
1067).

4. No person shall raise or lower the water level of a river stream, lake, lagoon, or marsh
nor drain the same without a permit (Article 43, PD 1067).

5. Drainage systems shall be so constructed that their outlets are rivers, lakes, the sea,
natural bodies of water, or such other water course as may be approved by the proper
government agency (Article 44, PD 1067).
 6. When a drainage channel is constructed by a number of persons for their common
benefit, the cost of construction and maintenance of the channel shall be borne by each
in proportion to the benefits derived (Article 45, PD 1067).

7. When artificial means are employed to drain water from higher to lower land, the owner
of the higher land shall select the routes and methods of drainage that will cause the
minimum damage to the lower lands, subject to the requirements of just compensation
(Article 46, PD 1067).

8. When the use, conveyance or storage of waters results in damage to another, the
person responsible for the damage shall pay compensation (Article 47, PD 1067).

9. Any person having an easement for an aqueduct may enter upon the servient land for
the purpose of cleaning, repairing or replacing the aqueduct or the removal of
obstructions therefrom (Article 49, PD 1067).

10. Lower estates are obliged to receive the waters which naturally and without the
intervention of man flow from the higher estate, as well as the stone or earth which they
carry with them. The owner of the lower estate can not construct works which will
impede this natural flow, unless he provides an alternative method of drainage; neither
can the owner of the higher estate make works which will increase this natural flow
(Article 50, PD 1067).

11. The banks of rivers and streams and the shores of the seas and lakes throughout their
entire length and within a zone of three (3) meters in urban areas, twenty (20) meters in
agricultural areas and forty (40) meters in forest areas, along their margins are subject to
the easement of public use in the interest of recreation, navigation, floatage, fishing and
salvage. No person shall be allowed to stay in this zone longer than what is necessary
for recreation, navigation, floatage, fishing or salvage or to build structures of any kind
(Article 51, PD 1067).

Construction and Repair of Structures (Article 39, PD 1067)

Except in cases of emergency to save life or property, the construction or repair of the
following works shall be undertaken only after the plans and specifications therefor, as may be
required by the Council, are approved by the proper government agency:
1. Dams for the diversion or storage of water;
2. Structures for the use of water power;
3. Installation for the utilization of subterranean or ground water and
4. Other structures for utilization of water resources.

EASEMENTS
An easement is an encumbrance imposed upon an immovable for the benefit of another
immovable belonging to a different owner (Paras, Civil Code, 1994 ed., 634)

a. Legal Easements relating to Waters under the Civil Code

 Natural drainage of lands (Article 637) – Lower estates are obliged to receive the waters
which naturally and without the intervention of man descend from the higher estates, as
well as the stones or earth which they carry with them. The owner of the lower estate
 cannot construct works which will impede this easement; neither can the owner of the
higher estate make works which will increase the burden.

(Illustrative Case: Remman Enterprises vs Court of Appeals, GR No. 125018, April 6, 2000)
Remman Enterprises, Inc., vs Court of Appeals; GR 125018; April 6, 2000
Lower estates obliged to receive the waters which naturally and without the intervention of man
from higher estates do not include artificially collected waters in manmade lagoons.
FACTS
Private respondent Lat and petitioner Remman are owners of adjoining parcels of land. Lat filed
a complaint for damages with preliminary mandatory injunction against Remman. He alleged
that the trees from his plantation began to wither and die due to the increase in acidity of the soil
as a result of the overflow of the waste disposal lagoon containing water with pig manure from
Remman's farm. Remman however contended that there exists a natural easement upon Lat’s
property where lower estates are obliged to receive the waters which naturally and without the
intervention of man descend from the higher estates.
Trial Court found that the overflow of Remman’s waste disposal lagoons was because of his
failure to monitor the increases in the level of water in the lagoons from the heavy downpour of
rain. The decision of the court was affirmed by the Court of Appeals.
ISSUE
Whether there exists a natural easement upon the estate of Lat to receive the waters from
Remman’s estate.
HELD/RATIO
NO, Article 637 impose a natural easement upon the lower estate to receive the waters which
naturally and without the intervention of man descend from higher states. However, where the
waters which flow from a higher state are those which are artificially collected in manmade
lagoons, any damage occasioned thereby entitles the owner of the lower or servient estate to
compensation. The collected waters from manmade lagoons are not the waters contemplated
by law as waters which naturally and without the intervention of man descend from
higher
states
Remman Enterprises, Inc., vs Court of Appeals; GR 125018; April 6, 2000
Lower estates obliged to receive the waters which naturally and without the intervention of man
from higher estates do not include artificially collected waters in manmade lagoons.
FACTS
Private respondent Lat and petitioner Remman are owners of adjoining parcels of land. Lat filed
a complaint for damages with preliminary mandatory injunction against Remman. He alleged
that the trees from his plantation began to wither and die due to the increase in acidity of the soil
as a result of the overflow of the waste disposal lagoon containing water with pig manure from
Remman's farm. Remman however contended that there exists a natural easement upon Lat’s
property where lower estates are obliged to receive the waters which naturally and without the
intervention of man descend from the higher estates.
Trial Court found that the overflow of Remman’s waste disposal lagoons was because of his
failure to monitor the increases in the level of water in the lagoons from the heavy downpour of
rain. The decision of the court was affirmed by the Court of Appeals.
ISSUE
Whether there exists a natural easement upon the estate of Lat to receive the waters from
Remman’s estate.
HELD/RATIO
NO, Article 637 impose a natural easement upon the lower estate to receive the waters which
naturally and without the intervention of man descend from higher states. However, where the
waters which flow from a higher state are those which are artificially collected in manmade
lagoons, any damage occasioned thereby entitles the owner of the lower or servient estate to
compensation. The collected waters from manmade lagoons are not the waters contemplated
by law as waters which naturally and without the intervention of man descend from
higher
states
FACTS
Private respondent Lat and petitioner Remman are owners of adjoining parcels of land. Lat filed
a complaint for damages with preliminary mandatory injunction against Remman. He alleged
that the trees from his plantation began to wither and die due to the increase in acidity of the soil
as a result of the overflow of the waste disposal lagoon containing water with pig manure from
Remman's farm. Remman however contended that there exists a natural easement upon Lat’s
property where lower estates are obliged to receive the waters which naturally and without the
intervention of man descend from the higher estates.
Trial Court found that the overflow of Remman’s waste disposal lagoons was because of his
failure to monitor the increases in the level of water in the lagoons from the heavy downpour of
rain. The decision of the court was affirmed by the Court of Appeals.
Facts: Remman Enterprises, Inc. and private respondent Crispin Lat are adjoining landowners
in Lipa City. The land of Lat is agricultural and planted mostly with fruit trees while Remman’s
land is devoted to its piggery business. The latter’s land is 1 ½ meters higher in elevation than
that of respondent Lat. Meanwhile, respondent noticed that petitioner’s waste disposal lagoon
was already overflowing and inundating ¼  of Lat’s plantation. Consequently, the trees growing
on the flooded portion where it was inundated with water containing pig manure, started to
wither and die. Private respondent then filed a complaint for damages alleging that the acidity of
the soil in his plantation increased because of the overflow of the water heavy with pig manure
from petitioner’s piggery farm.

ISSUE: Whether there exists a natural easement upon the estate of Lat to receive water from
Remman’s estate?

HELD: No. Under Article 637 of the Civil Code, it is provided that “lower estates are obliged to
receive the waters which naturally and without the intervention of man descend from the higher
estates, as well as the stones or earth which they carry with them. The owner of the lower
estate cannot construct works which will impede this easement; neither can the owner of the
higher estate make workswhich will increase the burden.” A similar provision is found
under Article 50 of the Water Code of the Philippines.

However, where the waters which flow from a higher state are those which are
artificially collected in manmade lagoons, any damage occasioned thereby entitles the owner of
the lower or servient estate to compensation. The collected waters from manmade lagoons are
not the waters contemplated by law as waters which naturally and without the intervention
of man descend from higher estates.

 Natural drainage of buildings (Article 674) – The owner of a building shall be obliged to
construct its roof or covering in such manner that the rain water shall fall on his own land
or on a street or public place, and not on the land of his neighbor, even though the
adjacent land may belong to two or more persons, one of whom is the owner of the roof.
Even if it should fall on his own land, the owner shall be obliged to collect the water in
such a way as not to cause damage to the adjacent land or tenement.
 Easements on riparian banks for navigation, floatage, fishing, and salvage (Article 638)
- The banks of rivers and streams, even in case they are of private ownership, are
subject throughout their entire length and within a zone of three meters along their
margins, to the easement of public use in the general interest of navigation, floatage,
fishing and salvage. Estates adjoining the banks of navigable or floatable rivers are,
furthermore, subject to the easement of towpath for the exclusive service of river
navigation and floatage. If it be necessary for such purpose to occupy lands of private
ownership, the proper indemnity shall first be paid

 Easement of a dam (Article 639) - Whenever for the diversion or taking of water from a
river or brook, or for the use of any other continuous or discontinuous stream, it should
be necessary to build a dam, and the person who is to construct it is not the owner of the
banks, or lands which must support it, he may establish the easement of abutment of a
dam, after payment of the proper indemnity.;
(Article 647) - One who for the purpose of irrigating or improving his estate, has to
construct a stop lock or sluice gate in the bed of the stream from which the water is to be
taken, may demand that the owners of the banks permit its construction, after payment
of damages, including those caused by the new easement to such owners and to the
other irrigators.

 Easement for drawing water or for watering animals (Article 640) - Compulsory
easements for drawing water or for watering animals can be imposed only for reasons of
public use in favor of a town or village, after payment of the proper indemnity.
(Article 641) - Easements for drawing water and for watering animals carry with them the
obligation of the owners of the servient estates to allow passage to persons and animals
to the place where such easements are to be used, and the indemnity shall include this
service

 Easement of Aqueduct (Article 643-646)

(Article 643.)One desiring to make use of the right granted in the preceding article is
obliged:
(1) To prove that he can dispose of the water and that it is sufficient for the use for which
it is intended;
(2) To show that the proposed right of way is the most convenient and the least onerous
to third persons;
(3) To indemnify the owner of the servient estate in the manner determined by the laws
and regulations.
(Article 644). The easement of aqueduct for private interest cannot be imposed on
buildings, courtyards, annexes, or outhouses, or on orchards or gardens already
existing.
(Article 645). The easement of aqueduct does not prevent the owner of the servient
estate from closing or fencing it, or from building over the aqueduct in such manner as
not to cause the latter any damage, or render necessary repairs and cleanings
impossible.
(Article 646). For legal purposes, the easement of aqueduct shall be considered as
continuous and apparent, even though the flow of the water may not be continuous, or
its use depends upon the needs of the dominant estate, or upon a schedule of alternate
days or hours.
 b. Easement of Public Use (Article 51)
The banks of rivers and streams and the shores of the seas and lakes throughout their
entire length and within a zone of
1. three (3) meters in urban areas,
2. twenty (20) meters in agricultural areas and
3. forty (40) meters in forest areas,
along their margins are subject to the easement of public use in the interest of recreation,
navigation, floatage, fishing and salvage. No person shall be allowed to stay in this zone longer
than what is necessary for recreation, navigation, floatage, fishing or salvage or to build
structures of any kind.
Furthermore, Section 28 of the Implementing Rules and Regulations provides that all
easements of public use prescribed for the banks or rivers and the shores of seas and lakes
shall be reckoned from the line reached by the highest flood which does not cause inundation or
the highest equinoctial tide whichever is higher. Any construction or structure that encroaches
into such easement shall be ordered removed by the Minister of Public Works.

CONTROL OF WATERS

A. Prohibition against activities that obstruct the flow of water, etc. (Article 53)

The Secretary of the Department of Public Works and Highways (DPWH), may declare
flood control areas and promulgate guidelines for governing flood plain management plans in
these areas to protect the best interest of flood plain lands. Such guidelines include:

1. promulgation of rules and regulations to prohibit or control activities that may damage
or cause deterioration on lakes and dikes, obstruct the flow of water, change the
natural flow of the river, increase flood losses or aggravate flood problems (Article 54)

2. construction of necessary flood control structures in declared flood control areas, such
as a legal easement as wide as may be needed along and adjacent to the river bank and
outside of the bed or channel of the river (Article 55)

B. Rivers or lakes may be declared navigable (Article 59)

Rivers, lakes and lagoons may, upon the recommendation of the Philippines Coast
Guard, be declared navigable either in whole or in part.

C. Pasig River Rehabilitation Commission (PRRC)

EO No. 717 was issued by the President on March 28, 2008 declaring the Pasig River
Dredging and Rehabilitation Work as a Presidential priority project, with the Pasig River
Rehabilitation Commission as the lead agency in the implementation of the project with the
following purposes:

1. to the beneficial development of Metro Manila and the country in general

2. to make a viable alternative for decongesting the road network system of Metro
Manila
 3. to positively utilize the river for increasing commerce and industry
4. to mitigate the flooding in most areas of Metro Manila
5. to increase the carrying capacity of the Pasig River
D. River beds may not be cultivated (Article 56)

River beds, sand bars and tidal flats may not be cultivated EXCEPT upon prior
permission from the DPWH Secretary, and such permission shall not be granted where such
cultivation obstructs the flow of water or increase flood levels so as to cause damage to other
areas.

E. Erection of levees (Article 57)

Any person may erect levees or revetments to protect his property from flood,
encroachment by the river or change in the course of the river, provided that such constructions
does not cause damage to the property of another.

F. Change of course of rivers (Article 58)

When a river or stream suddenly changes its course to traverse private lands, the
owners of the affected lands may not compel the government to restore the river to its former
bed; nor can they restrain the government from taking steps to revert the river or stream to its
former course. The owners of the land thus affected are not entitled to compensation for any
damage sustained thereby. However, the former owners of the new bed shall be the owners of
the abandoned bed in proportion to the area lost by each.

G. Reservoirs (Article 62)

Waters of a stream may be stored in a reservoir by a permittee in such amount as will

not prejudice the right of any permittee downstream. Whoever operates the reservoir shall,
when required, release water for minimum stream flow.

H. Drilling for subterranean or ground water (Article 64)

The Council shall approve the manner, location, depth, and spacing in which borings for
subterranean or ground water may be made, determine the requirements for the registration of
every boring or alteration to existing borings as well as other control measures for the
exploitation of subterranean or ground water resources, and in coordination with the
Professional Regulation Commission prescribe the qualifications of those who would drill such
borings. No person shall drill a well without prior permission from the Council.

I. Easement of aqueduct

Any person who may wish to use upon his own estate any water which he can dispose
shall have the right to make it flow through the intervening estates, with the obligation to
indemnify their owners, as well as the owners of the lower estates upon which the waters may
filter or descend.

CONSERVATION AND PROTECTION OF WATERS AND WATERSHEDS AND RELATED

LAND RESOURCES
After due notice and hearing, the National Water Resources Board may establish minimum
water levels as may be necessary for the protection of the environment, control of pollution,
navigation, prevention of salt damage, and general public use. Conservation measures include
the following:

1. Any watershed or any area of land adjacent to any surface water or overlying any ground
water may declared by the Department of Natural Resources as protected area Rules and
regulations may be promulgated by such Department to prohibit or control such activities by the
owners or occupants thereof within the protected area which may damage or cause the
deterioration of the surface water or ground water or interfere with the investigation, use,
control, protection, management or administration of such waters. (Article 67)

Related Jurisprudence:

a. Sta. Rosa Realty Development Corporation v. Court of Appeals, G.R. No. 112526

Facts:

Petitioner Sta. Rosa Realty Development Corporation was the registered owner of two
parcels of land with a total land area of 254.6 hectares. According to petitioner, the parcels of
land are watersheds, which provide clean potable water to the Canlubang community. Petitioner
alleged that respondents usurped its rights over the property, thereby destroying the ecosystem.
Respondents filed a civil case seeking an easement of a right of way to and from Barangay
Casile. By way of counterclaim, petitioner sought the ejectment of private respondents. Then
they petitioned the DAR for the compulsory acquisition of the SRRDC property under the CARP.
The landholding of SRRDC was placed under compulsory acquisition. Petitioner objected to the
compulsory acquisition of the property contending that the area was not appropriate for
agricultural purposes. The DARAB ruled against the petitioner.

Issue:

Whether the property in question is covered by CARP despite the fact that the entire
property formed part of a watershed area prior to the enactment of RA No. 6657.

Held:

Watershed is one of those enumerated by CARP to be exempt from its coverage. We

cannot ignore the fact that the disputed parcels of land form a vital part of an area that need to
be protected for watershed purposes. The protection of watershed ensures an adequate supply
of water for future generations and the control of flashfloods that not only damage property but
also cause loss of lives. Protection of watershed is an ‘intergenerational’ responsibility that
needs to be answered now.

b. Collado v. Court of Appeals, G.R No. 107764

Facts:
 Collado filed with the land registration court an application for registration of a parcel of
land with an approximate are of 120 hectares. Attached to the application was the technical
description of the lot signed by Panyarihan, officer-in-charge of the Survey Division which
stated, “This survey is inside IN-12 Mariquina Watershed.” The Republic of the Philippines,
through the Solicitor General and the Municipality of Antipolo, through its Municipal Attorney and
the Provincial Fiscal of Rizal filed oppositions to petitioners’ application. Petitioners claimed that
they have occupied the lot since time immemorial. Their possession has been open, public,
notorious, and in the concept of owners.

Issue:

Whether petitioners have registrable title over the lot.

Held:

Under the Regalian Doctrine, all lands of public domain as well as natural resources
belong to the State. Watersheds are considered natural resources which are not susceptible of
occupancy, disposition, conveyance, or alienation. The statute of limitations with regard to
public land does not operate against the State.

c. Tan v. Director of Forestry, G.R. No. L-24548

Facts:

Tan won the bidding for the license logging operations on a public forest land in
Olongapo. The Secretary of Agriculture and Natural Resources promulgated Order no. 46 which
gives the power to the Director of Forestry to grant (a) new ordinary timber licenses where the
area covered thereby is not more than 3,000 hectares each; and (b) the extension of ordinary
timber licenses for areas not exceeding 3,000 hectares. Then, General Memorandum Order No.
60 was issued by the acting secretary, revoking the authority delegated to the Director of
Forestry which incidentally was the same date the license for petitioner was granted. Acting on
claims of irregularity, the license for the petitioner was revoked.

Issue:

Whether the Director of Forestry gravely abused its discretion in revoking the license.

Held:

No. A timber license is an instrument by which the State regulates the utilization and
disposition of forest resources, including watershed areas to promote public welfare. A timber
license is not a contract within the purview of the due process clause; it is only a license or
privilege, which can be validly withdrawn whenever dictated by public interest or public welfare.

2. The conservation of fish and wildlife shall receive proper consideration and shall be
coordinated with other features of water resources development programs to insure that fish
and wildlife values receive equal attention with other project purposes. (Article 73)
3. Swamps and marshes which are owned by the State and which primary value for waterfowl
propagation or other wildlife purposes may be reserved and protected from drainage operation
and development. (Article 74)

4. No person shall, without prior permission from the National Pollution Control Commission,
build any works that may produce dangerous or noxious substances or perform any act which
may result in the introduction of sewage, industrial waste, or any pollutant into any source of
water supply. (Article 75)

5. The establishment of cemeteries and waste disposal areas that may affect the source of a
water supply or a reservoir for domestic or municipal use shall be subject to the rules and
regulations promulgated by the Department of Health. (Article 76)

6. Tailings from mining operations and sediments from placer mining shall not be dumped into
rivers and waterways without prior permission from the Council upon recommendation by the
EMB. (Article 77)

THE NATIONAL WATER RESOURCES BOARD

The National Water Resources Board (NWRB) is the chief coordinating and regulating
agency for all water resources management development activities which is tasked with the
following:

1. formulation and development of a continuing program for data collection, research

and
manpower development needed for the appropriation, utilization, exploitation,
conservation, and
protection of the water resources of the country
2. control and supervision of water utilities and franchises
3. regulation and rationalization of water rates
4. coordinates and integrates water resources development activities
5. grants, determines, adjudicates water rights
6. formulation of framework plans for water supply
7. promulgation of rules and regulations for the exploitation and optimum utilization of
water
resources
8. granting of permits
9. imposition of penalties for administrative violations
10. make all decisions and determinations provided for in the Code
11. deputize any official or agency of the government to perform any of its specific
functions or
activities
12. imposition and collection of reasonable fees or charges for water resources
development from
water appropriators, except when it is for purely domestic purposes

The board also has the:

1. Authority to enter upon private lands, with previous notice to the owner, for the purpose of
conducting surveys and hydrologic investigations, and to perform such other acts as are
necessary in carrying out their functions including the power to exercise the right of eminent
domain. (Article 87)

2. Original jurisdiction over all disputes relating to appropriation, utilization, exploitation,

development, control, conservation and protection of waters (Article 88)

Related Jurisprudence:

a. Tanjay Water District v Gabaton, G.R No. L-63742

Facts:

Tanjay Water District filed a case against the Municipality of Pamplona to prevent them
from interfering the management of the Tanjay Waterworks System. Judge dismissed the case
for lack of jurisdiction over the subject matter.

Issue:

Whether water districts created under PD No. 198 are private corporations or
government-owned or controlled corporations.

Held:

The Court ruled that the original charter of Tanjay Water District and all water districts in
the country come under the coverage of the civil service law’s rules and regulations. Since this
case involves an action for injunction with preliminary mandatory injunction and damages
against respondent Municipality of Pamplona and its officials to prevent them from interfering in
the management of the Tanjay Waterworks System – involves the appropriation, utilization and
control of water, the jurisdiction to hear and decide the dispute pertains to the NWRB.

b. Bulao v Court of Appeals, 218 SCRA 321

Facts:

Belleza sued Bulao for damages for having built a dam on an irrigation canal causing the
waterflow to divert to Belleza’s land, resulting to a crop damage. Bulao filed a motion to dismiss
on the ground that MCTC had no jurisdiction and that the case was cognizable by the NWRB,
the real issue being one of ownership, possession of the land where the ditches are located,
and real rights involving the use of ditches. The Court denied the motion.

Issue:

Whether the MCTC or the NWRB has jurisdiction over respondent’s complaint for
damages based upon a quasi-delict.

Held:
 MCTC had jurisdiction. The nature of the action must be ascertained from the ultimate
facts averred in the complaint. It is clear from a reading of the complaint that it is an action for
damages predicated on quasi-delict. Thus, it was not the NWRB who shall try the case for the
issue involved was not about appropriation, utilization and control of water.

3. Power to exhaust administrative remedies

Related Jurisprudence:

Abe-abe v Manta, G.R. No. L-4827

Facts:

The petitioners sought a judicial confirmation of their prior vested right under Article 504
of the Civil Code to use the water of Anibungan Albay and Tajong Creeks to irrigate their
ricelands upstream. They also wanted to enjoin the private respondents from using the water of
the creeks at night to irrigate his riceland located downstream. The lower court dismissed the
case for lack of jurisdiction and for non-exhaustion of administrative remedies.

Issue:

Whether the RTC of Camiguin has jurisdiction to adjudicate a dispute over water rights
for irrigation purposes even if the controversy had not yet been passed upon by the NWRB.

Held:

Petitioners’ immediate recourse is to ventilate their grievance first with the NWRB which
is the administrative agency exclusively vested with original jurisdiction to settle water rights
disputes under the Water Code, consistent with the rule on exhaustion of administrative
remedies and not to file an instant certiorari case for the belated review of the lower court’s
order of dismissal.

PUNISHABLE ACTS AND PENALTIES

A. Punishable Acts (Article 90)

The following acts shall be penalized by suspension or revocation of the violator's water permit
or other right to the use of water and/or a fine of not exceeding One Thousand Pesos
(P1,000.00), in the discretion of the Council:

(a) Appropriation of subterranean or ground water for domestic use by an overlying

landowner
without registration required by the Council.
(b) Non-observance of any standard of beneficial use of water.
(c) Failure of the appropriator to keep a record of water withdrawal, when required.
(d) Failure to comply with any of the terms or conditions in a water permit or a water
rights grant.
(e) Unauthorized use of water for a purpose other than that for which a right or permit
was granted.
 (f) Construction or repair of any hydraulic work or structure without duly approved plans
and
specifications, when required.
(g) Failure to install a regulating and measuring device for the control of the volume of
water
appropriated, when required.
(h) Unauthorized sale, lease, or transfer of water and/or water rights.
(i) Failure to provide adequate facilities to prevent or control diseases when required by
the Council
in the construction of any work for the storage, diversion, distribution and utilization
of water.
(j) Drilling of a well without permission of the Council.
(k) Utilization of an existing well or ponding or spreading of water for recharging
subterranean or
ground water supplies without permission of the Council.
(l) Violation of or non-compliance with any order, rules, or regulations of the Council.
(m) Illegal taking or diversion of water in an open canal, aqueduct or reservoir.
(n) Malicious destruction of hydraulic works or structure valued at not exceeding
P5,000.00.

B. Penalties (Article 91)

A fine of not exceeding Three Thousand Pesos (P3,000.00) or imprisonment for not more than
three (3) years, or both such fine and imprisonment, in the discretion of the Court, shall be
imposed upon any person who commits any of the following acts:

1. Appropriation of water without a water permit, unless such person is expressly

exempted from
securing a permit by the provisions of this Code.
2. Unauthorized obstruction of an irrigation canal.
3. Cultivation of a river bed, sand bar or tidal flat without permission.
4. Malicious destruction of hydraulic works or structure valued at not exceeding Twenty-
Five Thousand Pesos (P25,000.00).

A fine exceeding Three Thousand Pesos P3,000.00) but not more than Six Thousand Pesos
P6,000.00) or imprisonment exceeding three (3) years but not more than six (6) years, or both
such fine and imprisonment in the discretion of the Court, shall be imposed on any person who
commits any of the following acts:

1. Distribution for public consumption of water which adversely affects the health and
safety of the
public.
2. Excavation or enlargement of the opening of a hot spring without permission.
3. Unauthorized obstruction of a river or waterway, or occupancy of a river bank or
seashore
without permission.
4. Establishment of a cemetery or a waste disposal area near a source of water supply
or reservoir
for domestic municipal use without permission.
 5. Constructing, without prior permission of the government agency concerned, works
that produce
dangerous or noxious substances, or performing acts that result in the introduction of
sewage,
industrial waste, or any substance that pollutes a source of water supply.
6. Dumping mine tailings and sediments into rivers of waterways without permission.
7. Malicious destruction of hydraulic works or structure valued more than Twenty-Five
Thousand
Pesos (P25,000.00) but at not exceeding One Hundred Thousand Peso (100,000.00).

A fine exceeding Six Thousand Pesos (P6,000.00) but not more than Ten Thousand Pesos
(P10,000.00) or imprisonment exceeding six (6) years but not more than twelve (12) years, or
both such fine and imprisonment, in the discretion of the Court, shall be imposed upon any
person who commits any of the following acts:

1. Misrepresentation of citizenship in order to qualify for water permit.

2. Malicious destruction of a hydraulic works or structure, valued at more than One
Hundred Thousand Pesos (P100,000.00).

WATER DISTRICTS
PD No. 198 or the “Provincial Water Utilities Act of 1973” as amended by PD No. 768 and PD
No. 1479, which took effect on June 11, 1978, authorizes the formation, lays down the powers
and functions, and governs the operation of water districts throughout the country. It is the
source of authorization and power to form and maintain a water district, and once formed, a
district is subject to its provisions and is not under the jurisdiction of any political subdivision.

Functions of Water Districts

1. To sell water to residents within their territory under such schedules of rates and
charges as may
be determined by their boards
2. To manage, administer, operate and maintain all watersheds within their territorial
boundaries
3. To safeguard and protect the use of waters therein
4. To supervise and control structures within their service areas
5. To prohibit any person from selling or disposing water for public purposes within their
service
areas where district facilities are available to provide such service

Terms under which water districts may be formed and operate

1. the name by which a water district shall be known, which shall include the name of the city,
municipality, or province, or region thereof, served by said system, followed by the words,
“Water District”

2. the number and qualifications of the members of the board of directors, with the date of
expiration of term of office for each; the manner of their selection and initial appointment by the
head of the local political subdivision; their terms of office; the manner of filling up vacancies in
the board; the compensation of liabilities of members of the board
Water districts are quasi-public corporations

The juridical entities created and organized under PD No. 198 are considered quasi-
public corporations, performing public services and supplying public wants. In addition to the
powers granted in, and subject to such restrictions imposed under, the Decree, they may also
exercise the powers, rights and privileges given to private corporations under existing laws.

Public hearing required on increase of water rates

When a local water district increases water rates, the law requires the district concerned
to conduct a public hearing regarding these rates. The same rates are subject to review by the
Local Water Utilities Administration (LWUA), which is tasked to determine whether the
establishment of the rates complies with the law.

THE LOCAL WATER UTILITIES ADMINISTRATION (LWUA)

PD No. 198 established a government corporation known as the Local Water Utilities
Administration (LWUA), to function primarily as “a specialized lending institution for the
promotion, development, and financing of local water utilities.

Powers and Functions of LWUA

1. prescribe minimum standards and regulations in order to assure acceptable standards

of
construction materials and supplies, maintenance, operation, personnel training,
accounting and
fiscal practices for local water utilities
2. furnish technical assistance and personnel training programs for local water utilities
3. monitor and evaluate local water standards
4. effect systems integration, joint investment and operations, district annexation and de-
annexation
whenever economically warranted

The LWUA has no adjudicatory functions

The LWUA does not have any adjudicatory functions. It has quasi-judicial power only as
regards rates or charges fixed by water districts, which it may review to establish compliance
with the provisions of PD No. 198, without prejudice to appeal being taken therefrom by a water
concessionaire to the NWRB whose decision thereon hall be appealable to the Office of the
President.

The SEC has no supervisory powers over water districts

Although water districts created by PD No. 198 are considered as quasi-public

corporations and authorized to exercise the powers, rights and privileges given to private
corporations under existing laws, they are entirely distinct from corporations organized under
the Corporation Code, PD No. 902-A. The resolutions creating them, their charters, are filed not
with the Securities and Exchange Commission (SEC) but with the LWUA. The SEC has no
power of supervision or control over the activities of water districts. That function of supervision
or control over water districts is entrusted to the LWUA.