WHEREAS, water is one of the basic needs of man;

WHEREAS, the water supply in numerous residential subdivisions with centralized water systems have been found to be inadequate, inefficient or not potable;

WHEREAS, this critical situation has reached such alarming proportions that the health, safety and well-being of the residents of the subdivision are being endangered;

WHEREAS, it has become imperative for the government to take drastic measures to protect the lives of these residents;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby declare and order:

SECTION 1. The Metropolitan Waterworks and Sewerage System, hereinafter referred to as MWSS, shall upon petition of the Homeowners Association or the subdivision owner/developer with the consent of the Homeowners Association, and upon recommendation of the National Housing Authority, take over the operation and maintenance of centralized water systems of residential subdivisions within its territorial jurisdiction.

SECTION 2. Upon takeover of the water system, the MWSS shall evaluate such system considering the adequacy, potability and other prevailing operating conditions. The MWSS shall thereafter cause the system to operate at the desired level as to provide adequate and potable water supply. The cost to render the system operable shall be chargeable to the subdivision owner/developer provided that the provision of adequate water supply has been specified or implied in the contract of sale or other forms used in offering the housing units within the project for sale. Otherwise, the cost to make the system operational shall be chargeable to the homeowners of the subdivision.

SECTION 3. The MWSS, in consultation with the National Housing Authority, shall issue the necessary rules and regulations for the effective implementation of this Decree. Such rules and regulations shall take effect immediately after their publication three (3) times a week for two (2) consecutive weeks in any newspaper of general circulation.

SECTION 4. This Decree shall take effect immediately.

DONE in the City of Manila, this 2nd day of April in the year of Our Lord, nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Assistant