SPECIFIC REQUIREMENTS for:

 CREATION
 MERGER
 ABOLITION
 DIVISION
 SUBSTANTIAL ALTERATION
of Boundaries of LGUs
-Barangays
-Municipalities
-Cities
-Provinces

CREATION OF LGU

Requirements Province City Municipality Barangay

LGC 460-461 RA 9009 LGC 441-442 LGC 385-386
(2001)
Income Average annual Average Average annual No minimum
income, as annual income, as requirement for
certified by the income, as certified by the income
DOF, of not certified by provincial
less than the DOF, of at treasurer, of at
P20,000,000 least least
based on 1991 P100,000,000 P2,500,000 for
constant prices for the last 2 the last two
consecutive consecutive
years based years based on
on 2000 1991 constant
constant prices
prices
Population 250,000 150,000 25,000 2,000
inhabitants inhabitants inhabitants inhabitants
5,000
inhabitants, in
cities and
municipalities
within MM and
other
metropolitan
political
 subdivisions or
highly urbanized
cities
Territory contiguous contiguous contiguous No minimum
territory of at
territory of at
territory of at requirement for
least 2,000km2
least 100km2 least 50km2 area
territory need
requirement Same as CITY. Territory need
not be
on land area not be
contiguous if it
shall not contiguous if it
comprises 2 or
apply where comprises 2 or
more islands or
the city more islands
is separated by
proposed to
a chartered city
be created is
or cities which
composed of 1
do not
or more
contribute to
islands; the
the income ofterritory need
the province not be
contiguous if
it comprises 2
or more
islands
Manner of By an Act of By an Act of By an Act of By law or by an
Creation Congress Congress Congress ordinance of the
sangguniang
panlalawigan or
panlungsod; In
case of the
creation of
barangays by
the sangguniang
panlalawigan,
the
recommendation
of the
sangguniang
bayan
concerned shall
be necessary
By an Act of
Congress, to
enhance the
delivery of basic
services in
indigenous
 cultural
communities
Plebiscite (in Approval must Approval Approval must Approval must
LGUs directly be by majority must be by be by majority be by majority of
affected) of the votes majority of the of the votes the votes cast;
cast; except votes cast; cast; except plebiscite shall
otherwise except otherwise be held within
provided in the otherwise provided in the such period of
Act of provided in Act of Congress, time as may be
Congress, the the Act of the plebiscite determined by
plebiscite shall Congress, the shall be held the law or
be held within plebiscite within 120 days ordinance
120 days from shall be held from effectivity creating said
effectivity of the within 120 of the law or barangay.
law or days from ordinance
ordinance effectivity of effecting such
effecting such the law or action
action ordinance
effecting such
action

 Any creation or alteration of the boundaries of LGU’s must be subject to

approval of the people affected through a plebiscite.

 Division and Merger

o 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.
o 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. [Sec. 8, LGC]

Effects of Merger
(1) Legal existence of LGU to be annexed is dissolved
(2) Laws and ordinance of the annexing LGU prevails
(3) The right of office in the annexed LGU is terminated
(4) Title to property is acquired by the annexing LGU
(5) Debts are assumed by the annexing LGU [Martin, supra]
 Effects of division
(1) The legal existence of the original municipality is extinguished
(2) Property, rights and powers are acquired by the dividing LGUs
[Martin, supra]

 Abolition
A local government unit may be abolished:
o when its income, population, or land area has been irreversibly
reduced to less than the minimum standards prescribed for its
creation under Book III of this Code, as certified by the national
agencies mentioned in Section 7 hereof to Congress or to the
sangguniang concerned, as the case may be.

The law or ordinance abolishing a local government unit shall specify the
province, city, municipality, or barangay with which the local government
unit sought to be abolished will be incorporated or merged. [Sec. 9, LGC]

When there is no dissolution

(1) Non-user or surrender of charter
(2) Failure to elect municipal officers
(3) Change of sovereignty
(4) Change of name

Territorial and political subdivisions

1. Barangays 

2. Municipalities 

3. Cities 

4. Provinces (Sec.1, Art. X, 1987 Constitution) 


Authority to create municipal corporations

An LGU may be created, divided, merged, abolished, or its boundaries

substantially altered either:

1. By law enacted by Congress in case of
province, city, municipality or any other
political subdivision;

2. By an 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 the LGC (Sec. 6, LGC).

NOTE: Failure to provide for seat of government is not fatal. Under Sec. 12 of
the LGC, the city can still establish a seat of government after its creation
(Samson v. Aguirre, G.R. No. 133076, September 22, 1999).

Requisites or Limitations imposed on the Creation or Conversion of

Municipal Corporations

1. Plebiscite requirement – Must be approved by majority of the votes cast in

a plebiscite called for such purpose in the political unit or units directly
affected (Sec 20, LGC).
NOTE: The residents of the mother province must participate in the plebiscite
to conform to the constitutional requirement (Tan v. COMELEC, G.R. No.
73155, July 11, 1986; Padilla v. COMELEC, G.R. No. 103328, October 19,
1992).

2. Income requirement – Must be sufficient and 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 by
the LGU concerned. 
 Average annual income consecutive year should be at
least:
i. Province – P 20M 

ii. Highly Urbanized City – P 50M 

iii. City – P 100M (R.A. 9009 amending Sec. 
 450 of LGC) 

iv. Municipality – P 2.5M 


NOTE: The income requirement for the conversion of municipality to a

component city only includes locally generated average annual income
(RA. 9009 amending Sec. 450 of LGC). 


3. Population requirement – determined as the total number of

inhabitants within the territorial jurisdiction of the LGU concerned. The
required minimum population shall be:
a. Barangay – 2,000 

XPN: barangays located in:
Metro Manila – 5,000 

Highly urbanized cities – 5,000 

 b. Municipality – 25,000 

c. City – 150,000 

d. Highly Urbanized Cities – 200,000 

e. Province – 250,000 


4. Land requirement - Must be contiguous, unless it is comprised of two or

more islands, or is separated by a LGU independent to the others. It
must be properly identified by metes and bounds with technical
descriptions, and sufficient to provide for such basic services and
facilities. Area requirements are:
a. Barangay – may be created out of a contiguous territory (Sec. 386,
LGC). 

b. Municipality – 50 sq. km (Sec. 442, LGC). 

c. City – 100 sq. km (Sec.450, LGC). 

d. Province – 2,000 sq.km (Sec. 461, LGC)

NOTE: Compliance with the foregoing indicators shall be attested to by:

a. The Department Finance (Income Requirement)
b. NSO (Population Requirement)
c. The Land Management Bureau of DENR (Land Requirement) (Sec 7(c),
LGC)

Q: President Garcia issued EO 353 creating the municipal district of San

Andres, Quezon, by segregating from the municipality of San Narciso 6 barrios
and their respective sitios. By virtue of EO. 174, issued by President Macapagal,
the municipal district of San Andres was later officially recognized to have gained
the status of a fifth class municipality. The Municipality of San Narciso filed a
petition for quo warranto with the RTC, against the officials of the Municipality
of San Andres, seeking the declaration of nullity of EO 353. The municipality
contended that EO 353, a presidential act, was a clear usurpation of the
inherent powers of the legislature and in violation of the constitutional principle
of separation of powers. The Municipality of San Andres, however, contended
that the case had become moot and academic with the enactment of Sec. 442
(d) of the LGC which provides for the continued existence of municipalities
created by executive orders. Is the Municipality of San Narciso correct?

A: NO. EO 353 was issued in 1959 but it was only after 30 years that the
Municipality of San Narciso initially decided to challenge the legality of the EO.
Created in 1959, the Municipality had been in existence for 6 years when the
Court decided the case of Pelaez v. Auditor General which declared void ab initio
several EOs creating 33 municipalities in Mindanao. The ruling could have
sounded the call for a similar declaration of the unconstitutionality of EO 353
but it was not to be the case. Granting that EO 353 was a complete nullity for
being result of an unconstitutional delegation of legislative power, the
Municipality of San Andres created by EO attained the status of de facto
municipal corporation. Certain governmental acts all pointed to the State’s
recognition of the continued existence of the municipality, i.e., it being classified
as a fifth class municipality, the municipality had been covered by the 10th
Municipal Circuit Court and its inclusion in the Ordinance appended to the
1987 Constitution. Equally significant is Section 442(d) of the Local Government
Code to the effect that municipal districts organized pursuant to presidential
issuances or executive orders and which have their respective sets of elective
municipal officials holding office at the time of the effectivity of the Code shall
henceforth be considered as regular municipalities. The power to create political
subdivisions is a function of the legislature. Congress did just that when it
incorporated Sec. 442 (d) in the LGC. Curative laws are validly accepted in this
jurisdiction, subject to the usual qualification against impairment of vested
rights. All considered, the de jure status of the Municipality of San Andres in
the province of Quezon must now be conceded. (Municipality of San Narciso v.
Mendez, G.R. No. 103702, December 6, 1994).

Q: President Macapagal issued several executive orders creating 33

municipalities in Mindanao, one of which is the Andong in Lanao Del Sur. He
justified the creation of such municipalities under Sec. 68 of the Revised
Administrative Code. However, in the case of Pelaez v. Auditor General, the Court
held that these EOs were null and void because Sec. 68 did not meet the
requirements for a valid delegation of legislative power to the executive branch.
Among the annulled EOs was the one creating the Municipality of Andong.
Petitioner Camid is a resident of Andong and claims that despite the ruling in
Pelaez, Andong remains in existence citing the case of Municipality of San
Narciso where the Court affirmed the status of the Municipality of San Andres
as a de facto municipal corporation and citing Sec. 442 (d) of the LGC recognizing
municipal corporations created by executive order. Is Camid correct?

A: NO. The case of Municipality of San Narciso is different from the case of
Andong. Unlike in San Narciso, the Executive Order creating Andong was
judicially declared null and void ab initio by the Court in the case of Pelaez.
Andong also does not meet the requisites set forth by Sec. 442 (d) of the LGC
which requires that in order for a municipality created by executive order to
receive recognition, it must have a set of elective municipal officials holding office
at the time of effectivity of the LGC. Andong has never elected its municipal
officers at all. Out of obeisance to the ruling in Pelaez, the national government
ceased to recognize the existence of Andong, depriving it of its share of the public
funds, and refusing to conduct municipal elections for the void municipality.
Section 442(d) does not serve to affirm or reconstitute the judicially dissolved
municipalities which had been previously created by executive orders. They
remain inexistent unless recreated through specific legislative enactments. The
provision only affirms the legal personalities only of those municipalities which
may have been created through executive fiat but whose existence have not been
judicially annulled (Camid v. Office of the President, G.R. No. 161414, January
17, 2005).

NOTE:
I. The color of authority required for the organization of a de facto municipal
corporation may be:
1. A valid law enacted by the legislature.

2. An unconstitutional law, valid on its face, which has either:
a. been upheld for a time by the courts; or 

b. not yet been declared void; provided that a warrant for its
creation can be found in some other valid law or in the
recognition of its potential existence by the general laws or
constitution of the state. 


II. There can be no de facto municipal corporation unless either directly or

potentially, such a de jure corporation is authorized by some legislative fiat.
III. There can be no color of authority in an unconstitutional statute alone, the
invalidity of which is apparent on its face.
IV. There can be no de facto corporation created to take the place of an existing
de jure corporation, as such organization would clearly be a usurper
(Municipality of Malabang v. Benito, G.R. No. L- 28113, March 28, 1968).

Creation of municipalities by the president

The EOs, which created municipalities are declared null and void because Sec.
68 of the Revised Administrative code was repealed by the 1935 constitution
(Pelaez v. Auditor General, G.R. No. L-23825, December 24, 1965). Hence,
municipalities created by an EO could not claim to be a de facto municipal
corporation, because there was no valid law authorizing incorporation.

Q: The Municipality of Sinacaban was created by EO 258 of then President

Quirino. Based on the technical description of EO 258, Sinacaban laid claims to
5 barrios located in the adjoining Municipality of Jimenez. The Municipality of
Jimenez, while conceding that under EO 258 the disputed area is part of
Sinacaban, nonetheless, asserted jurisdiction based on an agreement it had with
the Municipality of Sinacaban which fixed the common boundaries of the two
municipalities. The Provincial Board declared the disputed area to be part of
Sinacaban. Jimenez filed a petition in the RTC alleging that in accordance with
Pelaez v. Auditor General, the power to create municipalities is essentially
legislative and consequently, Sinacaban which was created by an executive
order, had no legal personality and no right to assert the territorial claim vis-à-
vis Jimenez, of which it remains part. The RTC, however, held that Sinacaban is
a de facto corporation since it had completely organized itself even prior to the
Pelaez case and exercised corporate powers for forty years before its existence
was questioned. Does the municipality of Sinacaban legally exist?

A: YES. The factors are present as to confer to Sinacaban the status of at least
a de facto municipal corporation, in the sense that its legal existence has been
recognized and acquiesced publicly and officially. Sinacaban had been in
existence for 16 years when Pelaez v. Auditor General was decided on, yet the
validity of EO 258 had never been questioned. On the contrary, the State and
even the municipality of Jimenez itself have recognized Sinacaban’s corporate
existence. Lastly, Sec. 442 (d) of the LGC must be deemed to have cured any
defect in the creation of Sinacaban (Mun. of Jimenez v. Baz Jr, G.R. No. 105746,
December 2, 1996).

Essential requisites of de facto corporation

1. Valid law authorizing incorporation 


2. Attempt in good faith to organize under it 

3. Colorable compliance with law 

4. Assumption of corporate powers