Rationale: The establishment of water districts has considerably improved the water supply at reasonable rates in urban and rural areas. However, the water district is guided by restrictive fiscal polices, rules and regulations which hinder initiatives and innovations and restrict its organizational and operational flexibility. Such situation makes it difficult for a water district to fully mobilize its resources and capabilities and maximize its potentials toward contributing to the attainmentof sustainable growth and development. > Cognizant of these restraints, there is therefore a need to grant fiscal autonomy in the operation, financial affairs and transactions of the district. This would mean autonomy in the programming, administeriing and managing of its own budget and other resources with the wisdom and dispatch that their needs require.