The Presidential Decree No. 198, also known as “The Provincial Water Utilities Act of 1973”, was signed into law on May 25, 1973 to respond to the conditions and developments of local water utilities.

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.

     The same year, the Local Water Utilities Administration, commonly referred to as LWUA, was created through PD No. 198 to promote and oversee the development of water supply systems in provincial cities and municipalities outside of Metropolitan Manila.

     Chapter II, Section 5 of PD No. 198 states that local water districts may be formed for the purpose of (a) acquiring, installing, improving, maintaining and operating water supply and distribution systems for domestic, industrial, municipal and agricultural uses for residents and lands within the boundaries of such districts, (b) providing, maintaining and operating wastewater collection, treatment and disposal facilities, and (c) conducting such other functions and operations incidental to water resource development, utilization and disposal within such districts, as are necessary or incidental to said purpose.

     On October 14, 1980, the Deed of Transfer of all existing facilities of the water works of the Municipality of Kabacan to the jurisdiction and ownership of the Kabacan Water District (KWD) was accepted in behalf of the KWD by the Chairman of the Board of Directors Mr. Antonio V. Ulangkaya together with Mr. Ciriaco E. Gapasin as the Vice Chairman, Atty. Amando Austria as the Secretary, Mrs. Amparo L. Reniedo as the Treasurer, and Engr. Tomas Pagarigan Jr. as Member.

     On October15, 1980, the Kabacan Water District (KWD) was established through Sangguniang Bayan Resolution No. 80-66 enacted by the Town Council of Kabacan pursuant to PD No. 198 with Mr. Jaime Marquez as its first General Manager.

     After it complied with all the necessary requirements, the LWUA issued the Conditional Certificate of Conformance (CCC) No. 194 to KWD on March 30, 1982. This certificate entitles the KWD to all the rights and privileges pursuant to PD No. 198.

     The Kabacan Water District (KWD) operated as a quasi-public corporation. However, in March 1992, the Supreme Court, through its en banc decision dated September 13, 1991, declared all water districts as “government-owned and controlled corporation (GOCC)”.

     It started as a small category water district and re-categorized as an average and as a medium-sized water district on March 2003 and March 2008, respectively.

     On March 2012, the KWD was classified as Category C Water District by the LWUA, through Resolution No. 029-2012, after being evaluated by the oversight committee on Local Water Districts (LWDs) composed of the LWUA, Civil Service Commission (CSC), Department of Budget and Management (DBM) and the Philippine Association of Water Districts (PAWD).