Presidential Decree No.198 also known as the “Provincial Water Utilities Act of 1973” was issued by then President Ferdinand E. Marcos in May 5, 1973.

“Declaring a national policy favoring local operation and control of water systems; authorizing the formation of local water districts and providing for the government and administration of such districts; chartering a national administration to facilitate improvement of local water utilities; granting said administration such powers as are necessary to optimize public service from water utility operations and for other purposes”

This act constitutes the creation of all local water districts in the country which includes the Puerto Princesa City Water District.