Philippine Water Districts Grapple with Escalating Supply Shortages
A recent study by the Philippine Institute for Development Studies (PIDS) has uncovered critical challenges facing water districts across the Philippines, as they struggle to keep pace with rising demand despite the country's abundant water resources. The report, titled "Securing Tomorrow's Water: Insights on Groundwater, Surface Water, and the Role of Water Districts in the Philippines," analyzed 532 water districts and found that annual demand consistently exceeds effective supply, posing significant risks to fast-growing urban centers like Metro Cebu.
Systemic Weaknesses in Water Service Provision
Authored by PIDS supervising research specialist Adrian Agbon, the study emphasizes that the core issue is not raw water scarcity but structural weaknesses in service delivery. The Philippines is estimated to have about 226 billion cubic meters of water available annually, including 20 billion cubic meters of groundwater and 206 billion cubic meters of surface water. However, 83% to 85% of this supply is allocated to agriculture, leaving a limited share for households, businesses, and industry.
Despite 87.7% of the population reportedly having access to safe water, fewer than half of Filipino households have piped connections at home. Additionally, 332 municipalities remain classified as "water-less," where more than half of residents lack a reliable supply. As the population grew from 77 million in 2000 to over 103 million in 2016, per capita water availability declined from 1,907 cubic meters to 1,400 cubic meters annually, intensifying pressure on distribution systems.
Widening Supply Deficits Across Regions
From 2019 to 2024, average annual water demand across the 532 water districts reached 10.6 million cubic meters, while effective supply—after accounting for estimated non-revenue water losses—averaged only seven million cubic meters. This resulted in a persistent 3.6 million cubic meter annual deficit nationwide.
In the Visayas, which includes Metro Cebu, average annual demand stood at 8.9 million cubic meters, while effective supply was only 6.3 million cubic meters, leaving a 2.7 million cubic meter shortfall. Coverage rates in the Visayas averaged 68%, below the 85% benchmark considered indicative of adequate supply performance. For Metro Cebu—a hub for IT-BPM, tourism, logistics, and real estate expansion—these deficits underscore rising infrastructure risks, particularly during dry months.
Risks of Heavy Groundwater Dependence
The study flags a key concern: the country's growing reliance on groundwater, which is the primary source for most water districts nationwide. Globally, groundwater accounts for about 99% of liquid freshwater and supplies half of domestic water use. In the Philippines, groundwater extraction grew by an average of 3.8% annually from 2014 to 2023, with a sharp 17.7% jump from 2019 to 2020, driven largely by mining, manufacturing, quarrying, and construction.
Overdependence on aquifers heightens the risk of saltwater intrusion in coastal cities such as Cebu, land subsidence, falling water tables, and long-term deterioration of water quality. Water withdrawals peaked at 92.3 million cubic meters in 2018, when national water stress reached 28.21%, illustrating how demand is increasingly pressing against available supply. Water quality is also deteriorating, with about 36% of the country's 623 classified water bodies falling under Class C (primarily suitable for fisheries) and 33% rated Class D, requiring substantial treatment before potable use.
Fragmented Governance and Financing Challenges
Beyond infrastructure gaps, the study highlights governance fragmentation, with around 30 public sector agencies sharing responsibilities over water quality, watershed management, irrigation, hydropower, sanitation, flood control, research, and supply regulation. Overlapping mandates and weak coordination can delay permitting, infrastructure investment, and service expansion, contributing to persistent shortfalls at the local level.
The distribution of water districts is uneven, with more operating in Northern Luzon, Panay Island, and Negros Occidental, while other regions rely more heavily on LGU-run utilities or private providers. The study also examines tariff structures, noting that most water districts use Increasing Block Tariffs, which may create unintended distortions and fail to reflect the true economic value of water.
Call for Integrated Solutions and Reform
Agbon emphasized that reform must move beyond fragmented, source-specific responses. "Securing the Philippines' water future requires shifting from fragmented, source-specific responses toward integrated planning, stronger monitoring, and better-supported water service providers," he said. With less than five years remaining to meet national water supply and sanitation targets, the study calls for:
- Integrated groundwater and surface water planning
- Stronger monitoring and licensing
- Targeted infrastructure upgrades
- Reduction of non-revenue water
- Blended financing mechanisms for resilience investments
This comprehensive approach is essential to address the growing water deficits and ensure sustainable water security for the Philippines' urban and rural populations alike.
