The Local Water Utilities Administration

The Local Water Utilities Administration (LWUA) is a government owned and controlled corporation created in 1973 by Presidential Decree 198, otherwise known as the Provincial Water Utilities Act. LWUA is a specialized lending institution for the promotion, development and financing of local water districts (WDs). A water district is an independently administered local water utility formed at the option of the local government for the purpose of acquiring, installing, improving, maintaining and operating water works for domestic, commercial and industrial uses. Each water district is governed by a Board of Directors composed of five local citizens appointed by the local Chief Executive from nominations of specific sectors of the community and functioning as a policy-making body. Day to day management of water district operations is the responsibility of a General Manager appointed by the Board.

LWUA extends loans to water districts at concessionary terms based on their potential for development and continued viability. Technical assistance is provided by LWUA on such aspects as planning, design, construction, operation and maintenance of water systems. Starting from their formation, water districts receive institutional development assistance from LWUA in the form of training and management advice, review of water rates, performance evaluation, installation of a standard commercial practices system, and formulation of public relations and marketing programs, among others.

Today, almost all of the larger cities and towns outside of Metro Manila have formed their water districts with the support of LWUA, as have a considerable number of smaller municipalities.