How is the creation, conversion, merger of LGU
Section 6. Authority to Create Local Government Units. - A local government unit may be created, divided,
merged, abolished, or its boundaries substantially altered either by law enacted by Congress in the case of a
province, city, municipality, or any other political subdivision, or by ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod concerned in the case of a barangay located within its territorial
jurisdiction, subject to such limitations and requirements prescribed in this Code.
Section 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its
conversion from one level to another level shall be based on verifiable indicators of viability and projected
capacity to provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential government
facilities and services and special functions commensurate with the size of its population, as expected of the
local government unit concerned;
(b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the
local government unit concerned; and
(c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local
government unit independent of the others; properly identified by metes and bounds with technical descriptions;
and sufficient to provide for such basic services and facilities to meet the requirements of its populace.
Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the National
Statistics Office (NSO), and the Lands Management Bureau (LMB) of the Department of Environment and
Natural Resources (DENR).
Section 8. Division and Merger. - Division and merger of existing local government units shall comply with the
same requirements herein prescribed for their creation: Provided, however, That such division shall not reduce
the income, population, or land area of the local government unit or units concerned to less than the minimum
requirements prescribed in this Code: Provided, further, That the income classification of the original local
government unit or units shall not fall below its current classification prior to such division.
The income classification of local government units shall be updated within six (6) months from the effectivity of
this Code to reflect the changes in their financial position resulting from the increased revenues as provided
herein.
Role and Creation of the Province
Section 459. Role of the Province. - The province, composed of cluster of municipalities, or municipalities and
component cities, and as a political and corporate unit of government, serves as dynamic mechanism for
developmental processes and effective governance of local government units within its territorial jurisdiction.
Section 460. Manner of Creation. - A province may be created, divided, merged, abolished, or its boundary
substantially altered, only by an Act of Congress and subject to approval by a majority of the votes cast in a
plebiscite to be conducted by the COMELEC in the local government unit or units directly affected. The
plebiscite shall be held within one hundred twenty (120) days from the date of effectivity of said Act, unless
otherwise provided therein.
Section 461. Requisites for Creation.
(a) A province may be created if it has an average annual income, as certified by the Department of Finance, of
not less than Twenty million pesos (P20,000,000.00) based on 1991 constant prices and either of the following
requisites:
(i) a contiguous territory of at least two thousand (2,000) square kilometers, as certified by the Lands
Management Bureau; or
(ii) a population of not less than two hundred fifty thousand (250,000) inhabitants as certified by the National
Statistics Office:
Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit
or units at the time of said creation to less than the minimum requirements prescribed herein.
(b) The territory need not be contiguous if it comprise two (2) or more islands or is separated by a chartered city
or cities which do not contribute to the income of the province.
(c) The average annual income shall include the income accruing to the general fund, exclusive of special
funds, trust funds, transfers and non-recurring income.
Role and Creation of the City
Section 448. Role of the City. - The city, consisting of more urbanized and developed barangays. serves as a
general purpose government for the coordination and delivery of basic, regular, and direct services and
effective governance of the inhabitants within its territorial jurisdiction.
Section 449. Manner of Creation. - A city may be created, divided, merged, abolished, or its boundary
substantially altered, only by an Act of Congress, and subject to approval by a majority of the votes cast in a
plebiscite to be conducted by the COMELEC in the local government unit or units directly affected. Except as
may otherwise be provided in such Act. the plebiscite shall be held within one hundred twenty (120) days from
the date of its effectivity.
Section 450. Requisites for Creation.
(a) A municipality or a cluster of barangays may be converted into a component city if it has an average annual
income, as certified by the Department of Finance, of at least Twenty million (P20,000,000.00) for the last two
(2) consecutive years based on 1991 constant prices, and if it has either of the following requisites:
(i) a contiguous territory of at least one hundred (100) square kilometers, as certified by the Lands
Management Bureau; or
(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National
Statistics Office:
Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit
or units at the time of said creation to less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds. The
requirement on land area shall not apply where the city proposed to be created is composed of one (1) or more
islands. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the general fund, exclusive of specific
funds, transfers, and non-recurring income.
CHAPTER I
Role and Creation of the Municipality
Section 440. Role of the Municipality. - The municipality, consisting of a group of barangays, serves primarily
as a general purpose government for the coordination and delivery of basic, regular and direct services and
effective governance of the inhabitants within its territorial jurisdiction.
Section 441. Manner of Creation. - A municipality may be created, divided, merged, abolished, or its boundary
substantially altered only by an Act of Congress and subject to the approval by a majority of the votes cast in a
plebiscite to be conducted by the COMELEC in the local government unit or units directly affected. Except as
may otherwise be provided in the said Act, the plebiscite shall be held within one hundred twenty (120) days
from the date of its effectivity.
Section 442. Requisites for Creation. -
(a) A municipality may be created if it has an average annual income, as certified by the provincial treasurer, of
at least Two million five hundred thousand pesos (P2,500,000.00) for the last two (2) consecutive years based
on the 1991 constant prices; a population of at least twenty-five thousand (25,000) inhabitants as certified by
the National Statistics Office; and a contiguous territory of at least fifty (50) square kilometers as certified by the
Lands Management Bureau: Provided, That the creation thereof shall not reduce the land area, population or
income of the original municipality or municipalities at the time of said creation to less than the minimum
requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created municipality shall be properly identified by metes and bounds.
The requirement on land area shall not apply where the municipality proposed to be created is composed of
one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the general fund of the municipality
concerned, exclusive of special funds, transfers and non-recurring income.
(d) Municipalities existing as of the date of the effectivity of this Code shall continue to exist and operate as
such. Existing municipal districts organized pursuant to presidential issuances or executive orders and which
have their respective set of elective municipal officials holding office at the time of the effectivity of this Code
shall henceforth be considered as regular municipalities.
Role and Creation of the Barangay
Section 384. Role of the Barangay. - As the basic political unit, the barangay serves as the primary planning
and implementing unit of government policies, plans, programs, projects, and activities in the community, and
as a forum wherein the collective views of the people may be expressed, crystallized and considered, and
where disputes may be amicably settled.
Section 385. Manner of Creation. - A barangay may be created, divided, merged, abolished, or its boundary
substantially altered, by law or by an ordinance of the sangguniang panlalawigan or panlungsod, subject to
approval by a majority of the votes cast in a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected within such period of time as may be determined by the law or
ordinance creating said barangay. In the case of the creation of barangays by the sangguniang panlalawigan,
the recommendation of the sangguniang bayan concerned shall be necessary.
Section 386. Requisites for Creation. -
(a) A barangay may be created out of a contiguous territory which has a population of at least two thousand
(2,000) inhabitants as certified by the National Statistics Office except in cities and municipalities within Metro
Manila and other metropolitan political subdivisions or in highly urbanized cities where such territory shall have
a certified population of at least five thousand (5,000) inhabitants: Provided, That the creation thereof shall not
reduce the population of the original barangay or barangays to less than the minimum requirement prescribed
herein.
To enhance the delivery of basic services in the indigenous cultural communities, barangays may be created in
such communities by an Act of Congress, notwithstanding the above requirement.
(b) The territorial jurisdiction of the new barangay shall be properly identified by metes and bounds or by more
or less permanent natural boundaries. The territory need not be contiguous if it comprises two (2) or more
islands.
(c) The governor or city mayor may prepare a consolidation plan for barangays, based on the criteria
prescribed in this Section, within his territorial jurisdiction. The plan shall be submitted to the sangguniang
panlalawigan or sangguniang panlungsod concerned for appropriate action.
In the case of municipalities within the Metropolitan Manila Area and other metropolitan political subdivisions,
the barangay consolidation plan shall be prepared and approved by the sangguniang bayan concerned.
