Philippine water districts face supply challenges despite abundant resources

WATER districts across the country are struggling to keep pace with growing demand, as service delivery systems fall short despite the Philippines’ available water resources, a study showed. The study by state-run think tank Philippine Institute for Development Studies (PIDS) found that across 532 water districts, annual demand consistently exceeds effective supply — contributing to persistent service gaps even as 87.7 percent of the population is reported to have access to safe water. Fewer than half of Filipino households have piped water connections at home, while 332 municipalities remain classified as “waterless,” with more than half of residents lacking reliable supply, the think tank said. It pointed to structural challenges in water service provision, particularly persistent supply deficits among water districts, that threaten long-term water security even in areas where water resources are available. The study, titled “Securing Tomorrow’s Water: Insights on Groundwater, Surface Water, and the Role of Water Districts in the Philippines,” was authored by PIDS Supervising Research Specialist Adrian Agbon. Citing data from the National Water Resources Board, the PIDS said that the Philippines has about 226 billion cubic meters of water available each year, including around 20 billion cubic meters of groundwater and about 206 billion cubic meters of surface water, such as rivers and lakes. However, it said that most of this water — about 83 percent to 85 percent — was used for agriculture, leaving a smaller share for households, businesses, and industries. The PIDS study also noted that supply gaps were driven less by raw water availability than by system capacity constraints among water districts. As the population increased from 77 million in 2000 to over 103 million in 2016, the PIDS said the amount of water available per person each year dropped from 1,907 cubic meters to just 1,400 cubic meters. Water quality was also deteriorating. Of the country’s 623 classified water bodies, only a limited number meet the highest potable standard. About 36 percent fall under Class C (primarily suitable for fisheries), while 33 percent are rated Class D, requiring substantial treatment before they can be used for drinking, the think tank added. The study also cited the country’s heavy and growing reliance on groundwater — the main source of supply for most water districts nationwide. Globally, the PIDS said that groundwater accounts for about 99 percent of liquid freshwater and supplies roughly half of domestic water use. In the Philippines, it said that extraction has steadily increased, rising by an average of 3.8 percent annually from 2014 to 2023. A sharp 17.7-percent jump was recorded from 2019 to 2020, driven largely by mining, manufacturing, quarrying, and construction, the PIDS said. During this period, groundwater use far exceeded surface water use in both volume and growth rate, it added. The study also noted that overdependence on aquifers could increase the risk of saline intrusion in coastal areas, land subsidence, falling water tables, and long-term deterioration of water quality. In 2018, the PIDS said that total water withdrawals peaked at 92.3 million cubic meters, with water stress reaching 28.21 percent — highlighting how demand is increasingly pressing against available supply. From 2019 to 2024, it said that average annual demand reached 10.6 million cubic meters, while effective supply stood at only about 7 million cubic meters — resulting in a persistent 3.6 million cubic meter deficit. “Luzon recorded the largest shortfall, followed by gaps across the Visayas and Mindanao. Many communities continue to rely on shared sources such as public wells or springs for domestic use,” the PIDS said. “These supply gaps constrain water districts’ ability to expand coverage and meet growing demand,” it added. The PIDS also said the supply deficits faced by water districts were not driven by resource constraints alone — they were also shaped by governance and institutional complexity. It said that water governance in the Philippines was “fragmented,” noting that around 30 public sector agencies — national and local — share responsibilities over water quality, watershed management, irrigation, hydropower, sanitation, flood control, research, and water supply. The think tank also noted weak coordination and overlapping mandates, which it said could delay permitting, infrastructure investment, and service expansion, contributing to persistent supply shortfalls at the local level. Since most districts depend on groundwater, which was harder to measure and manage, pricing water fairly and efficiently remained a challenge. While current rate structures aim to promote fairness and conservation, some pricing practices may create unintended effects and deserve closer review, the PIDS said. With less than five years remaining to meet national water supply and sanitation targets, the study underscored the need to strengthen water districts’ capacity to expand coverage, improve system efficiency, and manage groundwater resources sustainably. Improving service reliability will require closer institutional coordination, targeted infrastructure investments, and pricing and financing mechanisms that support both affordability and long-term system sustainability, the study said. “Securing the Philippines’ water future requires shifting from fragmented, source-specific responses toward integrated planning, stronger monitoring, and better-supported water service providers,” Agbon said.