Pursuant to Presidential Decree 198 (Provincial Water Utilities Act of 1973), Title II, Chapter II, Section 5, the Lubao Water District was formed as an agency mandated to acquire, install, improve, maintain and operate water supply and distribution systems for domestic, industrial, municipal and agricultural uses for residents and lands within the boundaries. It also mandated to provide, maintain and operate wastewater collection, treatment and disposal facilities and conduct other functions and operations incidental to water resource development, utilization and disposal within, as are necessary or incidental to said purpose.