The Philippines, although known to have relatively abundant water resources is presently confronted with alarming sustainable development crisis in the water sector. Ensuring the long-term availability of adequate supplies of clean water at a reasonable price is one of the greatest challenges the country needs to address. Rapid population growth, economic development, urbanization, and industrialization have taken its toll on the water resources of the country resulting in an increased competition for water supply, irrigation, and hydropower. Furthermore, increasing water pollution, degradation of the watersheds, and the inadequate government support to the sector programs has aggravated the situation. Hence, there is a need for the implementation an integrated, coherent and sustainable water resources management program.

The causes of the sector problems are mainly due to institutional fragmentation, resulting in ambiguous definition of roles and responsibilities, overlapping tasks , lack of comprehensive database, a missing sustainable water management policy and a weak overall regulatory authority.

Currently, there are more than 20 different government institutions that are directly or indirectly involved in the water supply and sanitation sector in the Philippines. Unclear responsibilities and missing coordination among these institutions, as well as lack of funds and qualified staff hinder the implementation of laws, recommendations, and strategies. The planned expansion of private sector involvement, for instance, is progressing only slowly.