CREATION, CONVERSION, DIVISION, ruled that the requirement set by R.A.

9009
MERGER AND CONSOLIDATION AND was arbitrary as the figure of P100 million was
set with no research or empirical data. While
ABOLITION OF LGUs
the Constitution mandates that the creation of
local government units must comply with the
Authority to Create Local Government (Sec. 6,
criteria laid down in the LGC, it cannot be
LGC)
justified to insist that the Constitution must
- An LGU may be created, divided,
have to yield to every amendment to the LGC
merged, abolished or its boundaries
despite such amendment imminently
substantially altered: (CDMAB)
producing effects contrary to the original
thrusts of the LGC to promote autonomy,
1. By a LAW enacted by Congress for
decentralization, countryside development and
provinces, cities and municipalities;
the concomitant national growth (League of
Cities of the Philippines v. COMELEC, G.R. No.
2. By an ORDINANCE passed by the
176951, 15 February 2011).
Sangguniang Panlalawigan or
Sangguniang Panlungsod concerned in
Plebiscite Requirement
the case of any barangay within its
No CDMAB of local government units shall take
territorial jurisdiction.
effect unless approved by a majority of the
votes cast in a plebiscite called for the purpose
General Limitations/Requisites
in the political unit or units directly affected.
In accordance with criteria set by the LGC: No
Said plebiscite shall be conducted by the
province, city, municipality or barangay may be
COMELEC within 120 days from the date of
CDMAB except in accordance with the criteria
effectivity of the law or ordinance effecting
established in the local government code and
such action, unless said law or ordinance fixes
subject to approval by a majority of the votes
another date (Sec. 10, LGC).
cast in a plebiscite in the political units affected
(Sec. 10, Art. X, 1987 Constitution).
A plebiscite for creating a new province should
include the participation of the residents of the
When Congress enacted the LGC in 1991, it
mother province in order to conform to the
provided for quantifiable indicators of
constitutional requirement (Tan v. COMELEC,
economic viability for the creation of local
G.R. No. 73155, 11 July 1986).
government units- income, population and
land area. It is clear that when Congress
According to Sec. 18 of Article X of the
passed the cityhood laws in questions, the
Constitution, a plebiscite is required only for
municipalities covered by the said laws are to
the creation of autonomous regions and for
be exempt from the coverage of R.A. 9009,
determining which provinces, cities and
which changed the income requirement for the
geographic areas will be included in the
conversion into cities from P20 million into
autonomous regions. This means that only
P100 million. R.A. 9009 took effect on 30 June
amendments to, or revisions of, the Organic
2001 and the laws in question sought to
Act constitutionally-essential to the creation
exempt from the coverage of the former the
of the autonomous regions- i.e., those aspects
municipalities that had pending conversion bills
specifically mentioned in the Constitution
before the passage of R.A. 9009, including the
which Congress must provide for in the Organic
municipalities covered by the assailed cityhood
Act- require ratification through a plebiscite.
laws. The municipalities covered by the 16
The date of the ARMM elections does not fall
cityhood laws have complied with the income
under any of the matters that the Constitution
requirement set by the LGC and in this case the
specifically mandated Congress to provide for
LGC must be the basis for the income
in the Organic Act. Therefore, any change in
requirement and not R.A. 9009 as the assailed
the date of elections cannot be construed as a
law clearly exempted the concerned
substantial amendment of the Organic Act that
municipalities from the coverage of the latter.
would require compliance with the plebiscite
As a result of R.A. 9009, and by necessity, the
requirement (Datu Michael Abas Kida v. Senate
LGC, were amended, not by repeal but by way
of the Philippines, et.al., G.R. No. 196271, 18
of the express exemptions being embodied in
October 2011).
the exemption clauses. The Supreme Court

1
The following are the amendments to the
Organic Act which require approval through a
plebiscite:
1. Those which relate to the basic
structure of the regional government;
2. Those which relate to the region’s
judicial system; and
3. Those which relate to the grant and
extent of the legislative powers
constitutionally conceded to the
national government under Sec. 20, Art.
X of the Constitution
A legislative district is not a corporate unit and
merely delineates the areas occupied by the
people who will choose a representative in
their national affairs. A legislative
apportionment does not mean, and does not
even imply a division of a local government
unit where the appointment takes place.
Thus, the plebiscite requirement that applies
to the division of a province, city, municipality
or barangay under the LGC should not apply
to and be a requisite for the validity of a
legislative apportionment or reapportionment
(Bagabuyo v. COMELEC, G.R. No. 176970, 8
December 2008).
A case involving a boundary dispute between
local government units presents a prejudicial
question which must be decided first before
plebiscites for the creation of proposed
barangays may be held. (City of Pasig v.
COMELEC, G.R. No. 125646, 10 September
1999).
There is no conflict between the power of the
President to merge administrative regions with
the constitutional provision requiring plebiscite
in the merger of LGUs because the
requirement of the plebiscites in a merger
expressly applied only to provinces, cities,
municipalities or barangays, not to
administrative regions (Abbas v. COMELEC, G.R.
No. 89651, 10 November 1989).
CREATION AND CONVERSION OF LGUs
According to Sec. 7 of the LGC, it shall be based
on:
1. Verifiable indicators of economic
viability; and
2. Projected capacity to provide services
Essential Requisites for the Creation and
Conversion of Municipal Corporations:
1. LAW or ORDINANCE (Sec. 6, LGC)
2. INCOME – sufficient to provide for all
essential government facilities and
services commensurate with the size of
its population (Sec. 7.a, LCG)
3. POPULATION – total number of
inhabitants within the territorial
jurisdiction (Sec. 7.b, LGC)
4. LAND AREA or TERRITORY- must be
contiguous except for islands or when
divided/separated by an LGU
independent of the others (Sec. 7.c,
LGC)
5. ATTESTATION – given by the DOF for
income, NSO for population, LMB of the
DENR for land area (Sec. 7, LGC)
6. PLEBISCITE – subject to the approval by
the majority of the votes cast in a
plebiscite in the unit or units directly
affected (Sec. 10, Art. X, 1987
Constitution)
VERIFIABLE INDICATORS FOR THE CREATION
OR CONVERSION OF A LOCAL GOVERNMENT
UNIT
1. INCOME – must be sufficient to provide
for all essential facilities and services
commensurate with the size of the
population;
2. POPULATION – based on the total
number of inhabitants within the
territorial jurisdiction of the local
government unit;
3. LAND AREA – must be contiguous
unless it comprises two or more islands
or is separated by a local government
unit; properly identified by metes and
bounds; and sufficient to provide for
such basic services and facilities
*compliance with the above-cited
indicators shall be attested by the
Department of Finance, the National
Statistics Office (now Philippine Statistics
Office) and the Land Management Bureau
of the DENR, respectively (Sec. 7, LGC).
As a matter of general rule, municipal
corporations cannot, without legal
authorization, exercise its powers beyond
its own corporate limits. It is necessary that
it must have its boundaries fixed, definite
2
 and certain, in order that it may be
identified and that all may know the exact
scope or section of territory or geographical
division embraced within the corporate
limits and over which the municipal
corporation has jurisdiction. A description
of the boundaries of a municipal
corporation is said to be an essential part
of its charter and necessary to corporate
existence. An incorporation is void where
the boundaries of the municipal
corporation are not described with
certainty.
While the power to create barangays has
been delegated to Sangguniang
Panlalawigan and Sangguniang Panlungsod,
Congress, in order to enhance the delivery
of basic services in indigenous cultural
communities, may create barangays in such
communities notwithstanding the
requirements set forth by law (Sec. 386.a,
LGC).
Only Congress can create provinces and
cities because the creation of provinces and
cities necessarily includes the creation of
legislative districts, a power only Congress
can exercise under Sec. 5, Art. VI of the
Constitution. Thus, MMA Act 201 enacted
by the ARMM Regional Assembly creating
the Province of Shariff Kabunsuan is void
(Sema v. COMELEC and Didagen P.
Dilangalen, G.R. No. 177597, 16 July 2008).
MANNER OF CREATION
1. CREATION OF BARANGAYS
Role of barangays: it 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 (Sec.
384, LGC).
Who may create: A barangay may be created,
divided, merged, abolished or its boundaries
substantially altered by law or by an ordinance
of the Sangguniang Panlalawigan or
Sangguniang Panlungsod. Where a barangay is
created by an ordinance of the Sangguniang
Panlalawigan, the recommendation of the
Sangguniang Bayan concerned shall be
necessary (Sec. 385, LGC).
Substantive Requisites (Sec. 386, LGC):
a. Population – at least 2,000 inhabitants.
Except in cities and municipalities
within Metro Manila or in highly
urbanized cities- must be at least 5,000
inhabitants
b. Income – no minimum income
requirement
c. Land Area – no minimum requirements,
but it must be contiguous except where
the barangay is comprised of two or
more islands
The creation of the new barangay shall not
reduce the population of the original barangay
for less than the minimum requirement
prescribed in the Code (Sec. 386, LGC).
2. CREATION OF MUNICIPALITIES
Role of Municipalities: It 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
(Sec. 440, LGC).
Who may create: It may be created, divided,
merged, abolished or its boundaries
substantially altered only by an act of Congress
subject to the criteria established by the Code
(Sec. 441, LGC)
Substantive Requisites (Sec. 442, LGC)
a. Population – at least 25,000
inhabitants;
b. Income- average annual income of at
least P2.5 million for the last two
consecutive years based on the 1991
constant prices;
c. Land Area- a contiguous territory of 50
kilometers.
3. CREATION OF COMPONENT CITIES
Role of Component Cities: It 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
(Sec. 448, LGC)
3

Who may create: It may be created, divided,
merged, abolished or its boundaries
substantially altered only by an act of Congress
subject to the criteria provided in the Code
(Sec. 449, LGC).
Substantive Requisites (Sec. 450, LGC):
a. Population – at least 150,000
inhabitants;
b. Income – at least P100 million for the
last two consecutive years;
c. Land Area – contiguous territory for at
least 100 square kilometers.
*Internal Revenue Allotments are a regular and
recurring item of income. It forms part of the
gross accretion of funds of the local
government unit, hence, included in computing
the average annual income required to become
a city (Alvarez v. Guingona, G.R. No. 118303, 31
January 1996).
4. CONVERSION OF A COMPONENT CITY
TO A HIGHLY URBANIZED CITY
If a component city shall have met the
minimum requirements for a highly urbanized
city, it shall be the duty of the President to
declare the city as highly urbanized city upon:
a. proper application; and b. upon ratification
in a plebiscite by the majority of registered
voters therein (Sec. 453, LGC)
Substantive Requisites (Sec. 452, LGC)
a. Population – at least 200,000
inhabitants;
b. Income - at least P50 million
5. CREATION OF PROVINCES
Role of Provinces: As a political and corporate
unit of government, it serves as a dynamic
mechanism for development processes and
effective governance of local government units
within its territorial jurisdiction (Sec. 459, LGC)
Who may create: It may be created, divided,
merged, abolished or its boundaries
substantially altered, only by an act of
Congress, subject to the satisfaction of the
criteria set forth by the LGC (Sec. 460, LGC).
Substantive Requisites (Sec. 461, LGC):
a. Population – not less than 250,000
inhabitants;
b. Income – average annual income of at
least P20 million
c. Land area – a contiguous territory of at
least 2,000 square kilometers.
6. STATUS OF SUB-PROVINCES: Existing
sub-provinces are converted into
regular provinces upon the approval by
a majority votes cast in a plebiscite to
be held in the said sub-province and the
original province directly affected (Sec.
462, LGC)
7. AUTONOMOUS REGIONS: The
Philippine Constitution mandates the
creation of autonomous regions in
Muslim Mindanao and in the Cordilleras
consisting of provinces, cities,
municipalities, and geographical areas
sharing common and distinctive
historical and cultural heritage and
economic and social cultures (Sec. 15,
Art. X, 1987 Constitution)
R.A. 6734, the organic act establishing
the Autonomous Regional Government
of Muslim Mindanao was held valid by
the Supreme Court (Datu Firdausi
Abbas v. COMELEC, G.R. No. 89651, 10
November 1989). However, the sole
Province of Ifugao which, in the
plebiscite, alone voted in favor of R.A.
6766, cannot validly constitute the
Autonomous Region of the Cordilleras
(Ordillo v. COMELEC, G.R. No. 93054, 4
December 1990).
8. SPECIAL METROPOLITANN POLITICAL
SUBDIVISIONS: Congress may, by law,
create special metropolitan political
subdivisions, but the component cities
and municipalities shall retain their
basic autonomy and shall be entitled to
their own local executives and
legislative assemblies. The jurisdiction
of the metropolitan authority that will
be thereby created shall be limited to
basic services requiring coordination
(Sec. 11, Art. X, 1987 Constitution).
4
 With the passage of R.A. 7924, municipal district of other territorial
Metropolitan Manila was declared a divisions is converted or fused into a
“special development and municipality all property rights vested
administrative region” and the in the original territorial organization
administration of metrowide basic shall become vested in the government
services affecting the region was placed of the municipality.
under a “development authority”
referred to as the Metropolitan Manila
Development Authority (MMDA), ABOLITION OF LGUs (Sec. 9, LGC)
whose functions were without When income, population or land area of an
prejudice to the autonomy of the LGU has been irreversibly reduced to less than
affected local government units. The the minimum standards prescribed for its
law does not grant police nor legislative creation.
powers to MMDA. Even the Metro
Manila Council, the governing board of The law or ordinance abolishing the LGU shall
the MMDA, has not been delegated any specify the province, city, municipality or
legislative power. Clearly, MMDA is not barangay with which the LGU sought to be
a political unit. There is no grant of abolished will be incorporated or merged.
authority to enact ordinances and
regulations for the general welfare of Congress has absolute power to alter and
the inhabitants of the metropolis. dissolve a municipal corporation by: (D-FARM)
MMDA cannot open for public use a 1. Dividing a municipal corporation into
private road in a private subdivision two or more separate municipalities;
(MMDA v. Bel-Air Village Association, 2. Fixing, altering or changing the
Inc., G.R. No. 135962, 27 March 2000). boundaries of municipal corporations;
3. Annexing one municipal corporation to
another;
Summary of Substantive Requisites in the 4. Repealing its charter;
Creation of LGUs 5. Merging or consolidating two or more
separate municipal corporations into
LGU Created Income Population Land Area one
Barangay No minimum 2000 but 5000 No minimum
requirement for Metro requirement
Manila & HUCs Beginning of Corporate Existence: Upon
Municipality P 2.5 million 25,000 50 sq.km. election and qualification of its Chief Executive
Component City P 100 150,000 100 sq.km.
million and majority of the members of its Sanggunian,
HUC P 50 200,000 No minimum unless some other time is fixed therefore by
requirement
million the law or ordinance creating it (Sec. 14, LGC).
Province P 20 250,000 2,000 sq.km.
million
A city comes into existence as a legal entity
upon approval of the law creating it. However,
before the same can act as a public corporation
DIVISION AND MERGER OF LGUs (Sec. 8, LGC) or juridical entity, it is necessary that the
Requirements are the same as those for their officials thereof be appointed or elected in
creation, to wit: order that it may transact business (Mejia v.
Balolong, G.R. No. L-1925, 16 September
1. It shall not reduce the income, 1948).
population or land area of the LGUs
concerned to less than the minimum An inquiry into the legal existence of a
requirement prescribed; municipal corporation is reserved to the State
2. Income classification of the original LGU in a proceeding for quo warranto or other
shall not fall below its current income direct proceeding. No collateral attack shall lie.
classification prior to the division; This rule applies when the municipal
3. Plebiscite be held in LGUs concerned; corporation is a de facto corporation.
4. Assets and liabilities of creation shall be
equitably distributed between the LGUs Effects of Annexation/Consolidation of
affected and the new LGU. When a Municipal Corporations
5
 before its annexation to another
1. On the legal existence of the territory territory shall be assumed by the
annexed: Unless otherwise provided for annexing territory in the absence of any
by law, the annexation of one municipal provision to the contrary. The same rule
corporation to another will dissolve the applies in consolidation where the
annexed territory. It shall become part consolidating municipal corporation is
of the annexing corporation and will fall held responsible for the indebtedness
under the jurisdiction of the latter. and obligations incurred by the
territories which are consolidated.
2. On the laws and ordinances of the
annexed corporation: In the absence of
any provision of law to the contrary,
when a territory is annexed to a
municipal corporation, it shall become
subject to all the laws and ordinances
by which the annexing corporation is
governed.

3. On the right of officers or employees of

the annexed or consolidated territory
to continue to hold their offices:
Subject to what the legislature may
provide upon annexation, the officers
and employees of the annexed or
consolidated territory shall terminate
their official relation with their offices.

4. On the title of the property of the

annexed territory: When a municipal
corporation is annexed to another, the
annexing territory shall require title to
the properties of the annexed territory
at the time of annexation without
compensation unless the annexing
statute provides otherwise. Where the
annexed territory, however, forms part
of a municipality from which it is taken,
the legislature may provide for the
payment of compensation for the
indebtedness incurred on account of
the property taken.

*With regard to public buildings and

improvements located in the annexed territory,
the annexing territory is not required to pay for
said buildings or improvements as they have
already been paid for by the annexed territory.
It would be otherwise if there exists an
indebtedness on said buildings in which case,
the annexing state may be required to share in
the payment of the indebtedness.

5. On the debts and obligations of the

annexed territory: It has been stated
that debts and obligations of a
municipal corporation contracted
6