Criteria for the creation of LGUs:

INCOME POPULATION LAND AREA

Barangay at least two 2,000 inhabitants as must be contiguous, unless
certified by NSO comprised by two (2) or more
islands.
EXCEPTION:
in municipalities and cities within
MMA and other metropolitan
political subdivisions as may be
created by law, or in highly-
urbanized cities where such territory
shall have a population of at least
five thousand (5,000)
Municipality an average annual income of population of at least twenty-five • contiguous
P2,500,000.00 for the last two thousand (25,000) inhabitants as exception: if it comprises 2 or
(2) consecutive years based on certified by the National Statistics more islands.
the 1991 constant prices as Office
certified by the provincial • with an area of at least 50
treasurer square kilometers, as
certified by LMB
exception: where the
municipality proposed to be
created is composed of 1 or
more islands
City an average annual income of at a population of not less than 150,000 • contiguous territory
least P20,000,000.00 for the inhabitants, as certified by the exception: if it comprises 2 or
last 2 consecutive years based National Statistics Office or more islands or is separated by
on 1991 constant prices, as a chartered city or cities which
certified by the Department of do not contribute to the
Finance income of the province
• at least 100 square
kilometers, as certified by
the Lands Management
Bureau
exception: where the city
proposed to be created is
composed of 1 or more islands

Component Cities average annual income, as a population of not less than 150,000 • a contiguous territory
(as amended by RA certified by the Department of inhabitants, as certified by the exception: not be contiguous
9009) Finance, of at least National Statistics if it comprises two (2) or more
P100,000,000 for the last two islands.
A municipality or a (2) consecutive years based on
cluster of barangays 2000 constant prices of at least 100 square
may be converted
or •
kilometers, as certified by
into a component the Land Management
city if à Bureau
exception: shall not apply
where the city proposed to be
created is composed of one (1)
or more island
Highly Urbanized annual income of at least a minimum population of 200,000
Cities P50,000,000.00 based on 1991 inhabitants, as certified by the
constant prices, as certified by National Statistics Office
the city treasure
 Provinces an average annual income of at a population of not less than 250,000 • contiguous territory
least P20,000,000.00 for the inhabitants as certified by the exception: if it comprises 2 or
last 2 consecutive years based National Statistics Office more islands or is separated by
on 1991 constant prices, as or a chartered city or cities which
certified by the Department of do not contribute to the
Finance income of the province
• at least 2,000 square
kilometers, as certified by
the Lands Management
Bureau
exception: where the proposed
province is composed of one
(1) or more islands. (LGC-
IRR Art 09)

Navarro v Ermita:

Where RA 9355 or An Act Creating the Province of Dinagat Islands was being assailed as unconstitutional as well as Art 09 or
LGC-IRR. Petitioner contends that the Dinagat Islands failed to comply with neither the population nor the land area requirement,
and that Art 09 of the LGC-IRR is unconstitutional since the exemption it provided for for the Land Area was not contained in
the LGC itself and therefore an invalid exercise of delegated legislative power.

o There appears neither rhyme nor reason why this exemption should apply to cities and municipalities, but not to
provinces. In fact, considering the physical configuration of the Philippine archipelago, there is a greater likelihood that
islands or group of islands would form part of the land area of a newly-created province than in most cities or
municipalities. It is, therefore, logical to infer that the genuine legislative policy decision was expressed in Section 442
(for municipalities) and Section 450 (for component cities) of the LGC, but was inadvertently omitted in Section 461
(for provinces). Thus, when the exemption was expressly provided in Article 9(2) of the LGC-IRR, the inclusion was
intended to correct the congressional oversight in Section 461 of the LGC and to reflect the true legislative intent. It
would, then, be in order for the Court to uphold the validity of Article 9(2) of the LGC-IRR.
o This interpretation finds merit when we consider the basic policy considerations underpinning the principle of local
autonomy. Consistent with the declared policy to provide local government units genuine and meaningful local
autonomy, contiguity and minimum land area requirements for prospective local government units should be liberally
construed in order to achieve the desired results. The strict interpretation adopted by the February 10, 2010 Decision
could prove to be counter-productive, if not outright absurd, awkward, and impractical. Picture an intended province
that consists of several municipalities and component cities which, in themselves, also consist of islands. The component
cities and municipalities which consist of islands are exempt from the minimum land area requirement, pursuant to
Sections 450 and 442, respectively, of the LGC. Yet, the province would be made to comply with the minimum land
area criterion of 2,000 square kilometers, even if it consists of several islands. This would mean that Congress has opted
to assign a distinctive preference to create a province with contiguous land area over one composed of islands and
negate the greater imperative of development of self-reliant communities, rural progress, and the delivery of basic
services to the constituency. This preferential option would prove more difficult and burdensome if the 2,000-square-
kilometer territory of a province is scattered because the islands are separated by bodies of water, as compared to one
with a contiguous land mass.

Moreover, such a very restrictive construction could trench on the equal protection clause, as it actually defeats the purpose of
local autonomy and decentralization as enshrined in the Constitution. Hence, the land area requirement should be read together
with territorial contiguity.

See RA 9009, League of Cities case

1. For a Barangay:
SEC. 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.

SEC. 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 sangguniang 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.

LGC: SEC. 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 can be prepared and approved by the sangguniang bayan concerned.

LGC-IRR: ARTICLE 14. Barangays. (a) Creation of barangays by the sangguniang panlalawigan shall require prior
recommendation of the sangguniang bayan.

(b) New barangays in the municipalities within MMA shall be created only by Act of Congress, subject to the limitations and
requirements prescribed in this Article.

(c) Notwithstanding the population requirement, a barangay may be created in the indigenous cultural communities by Act of
Congress upon recommendation of the LGU or LGUs where the cultural community is located.

(d) A barangay shall not be created unless the following requisites are present:
(1) Population which shall not be less than two thousand (2,000) inhabitants, except in municipalities and cities within MMA
and other metropolitan political subdivisions as may be created by law, or in highly-urbanized cities where such territory shall
have a population of at least five thousand (5,000) inhabitants, as certified by the NSO. The creation of a barangay shall not reduce
the population of the original barangay or barangays to less than the prescribed minimum
(2) Land Area which must be contiguous, unless comprised by two (2) or more islands. The territorial jurisdiction of a barangay
sought to be created shall be properly identified by metes and bounds or by more or less permanent natural boundaries.

2. Municipality:
SEC. 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.
SEC. 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.
LGC: SEC. 442. Requisites for Creation. (a) A municipality may be created if it has an average annual income, as certified by
the provincial treasurer, or 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 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 regular municipalities.

LGC-IRR: ARTICLE 13. Municipalities. (a) Requisites for Creation A municipality shall not be created unless the following
requisites are present:

(i) Income An average annual income of not less than Two Million Five Hundred Thousand Pesos (P2,500,000.00), for
the immediately preceding two (2) consecutive years based on 1991 constant prices, as certified by the provincial treasurer. The
average annual income shall include the income accruing to the general fund, exclusive of special funds, special accounts,
transfers, and nonrecurring income;
(ii) Population which shall not be less than twenty five thousand (25,000) inhabitants, as certified by NSO; and

(iii) Land area which must be contiguous with an area of at least fifty (50) square kilometers, as certified by LMB. The
territory need not be contiguous if it comprises two (2) or more islands. The requirement on land area shall not apply where the
proposed municipality is composed of one (1) or more islands. The territorial jurisdiction of a municipality sought to be created
shall be properly identified by metes and bounds.

The creation of a new municipality shall not reduce the land area, population, and income of the original LGU or LGUs at the
time of said creation to less than the prescribed minimum requirements. All expenses incidental to the creation shall be borne by
the petitioners.

3. City:
SEC. 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.
SEC. 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.cralaw
LGC: SEC. 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 pesos (P20,000,000.00) for
the last two (2) consecutive years based on 1991 constant prices, and if it has either of the following requisities:

(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 special funds, transfers, and
non-recurring income.
LGC-IRR: ARTICLE 11. Cities. (a) Requisites for creation A city shall not be created unless the following requisites on income
and either population or land area are present:

(1) Income An average annual income of not less than Twenty Million Pesos (P20,000,000.00), for the immediately preceding
two (2) consecutive years based on 1991 constant prices, as certified by DOF. The average annual income shall include the income
accruing to the general fund, exclusive of special funds, special accounts, transfers, and nonrecurring income; and
(2) Population or land area Population which shall not be less than one hundred fifty thousand (150,000) inhabitants, as certified
by the NSO; or land area which must be contiguous with an area of at least one hundred (100) square kilometers, as certified by
LMB. The territory need not be contiguous if it comprises two (2) or more islands or is separated by a chartered city or cities
which do not contribute to the income of the province. The land area requirement shall not apply where the proposed city is
composed of one (1) or more islands. The territorial jurisdiction of a city sought to be created shall be properly identified by metes
and bounds.

The creation of a new city shall not reduce the land area, population, and income of the original LGU or LGUs at the time of said
creation to less than the prescribed minimum requirements. All expenses incidental to the creation shall be borne by the petitioners.
SEC. 451. Cities, Classified. - A city may either be component or highly urbanized: Provided, however, That the criteria
established in this Code shall not affect the classification and corporate status of existing cities. Independent component cities are
those component cities whose charters prohibit their voters from voting for provincial elective officials. Independent component
cities shall be independent of the province.

SEC. 452. Highly Urbanized Cities. - (a) Cities with a minimum population of two hundred thousand (200,000) inhabitants, as
certified by the National Statistics Office, and with the latest annual income of at least Fifty Million Pesos (P=50,000,000.00)
based on 1991 constant prices, as certified by the city treasurer, shall be classified as highly urbanized cities.

(b) Cities which do not meet the above requirements shall be considered component cities of the province in which they are
geographically located. If a component city is located within the boundaries of two (2) or more provinces, such city shall be
considered a component of the province of which it used to be a municipality.

(c) Qualified voters of highly urbanized cities shall remain excluded from voting for elective provincial officials. Unless otherwise
provided in the Constitution or this Code, qualified voters of independent component cities shall be governed by their respective
charters, as amended, on the participation of voters in provincial elections. Qualified voters of cities who acquired the right to
vote for elective provincial officials prior to the classification of said cities as highly-urbanized after the ratification of the
Constitution and before the effectivity of this Code, shall continue to exercise such right.

SEC. 453. Duty to Declare Highly Urbanized Status. - It shall be the duty of the President to declare a city as highly urbanized
within thirty (30) days after it shall have met the minimum requirements prescribed in the immediately preceding section, upon
proper application therefor and ratification in a plebiscite by the qualified voters therein.

4. Provinces:
SEC. 459. Role of the Province. - The province, composed of a cluster of municipalities, or municipalities and component cities,
and as a political and corporate unit of government, serves as a dynamic mechanism for developmental processes and effective
governance of local government units within its territorial jurisdiction.

SEC. 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.

LGC: SEC. 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 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 comprises 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.

LGC-IRR: ARTICLE 9. Provinces. (a) Requisites for creation A province shall not be created unless the following requisites
on income and either population or land area are present:

(1) Income An average annual income of not less than Twenty Million pesos (P20,000,000.00) for the immediately preceding
two (2) consecutive years based on 1991 constant prices, as certified by DOF. The average annual income shall include the income
accruing to the general fund, exclusive of special funds, special accounts, transfers, and non-recurring income; and
(2) Population or land area Population which shall not be less than two hundred fifty thousand (250,000) inhabitants, as certified
by NSO; or land area which must be contiguous with an area of at least two thousand (2,000) square kilometers, as certified by
LMB. The territory need not be contiguous if it comprises two (2) or more islands or is separated by a chartered city or cities
which do not contribute to the income of the province. The land area requirement shall not apply where the proposed province is
composed of one (1) or more islands. The territorial jurisdiction of a province sought to be created shall be properly identified by
metes and bounds.

The creation of a new province shall not reduce the land area, population, and income of the original LGU or LGUs at the time
of said creation to less than the prescribed minimum requirements. All expenses incidental to the creation shall be borne by the
petitioners.

Highly Urbanized Cities

Section 452. Highly Urbanized Cities. (a) Cities with a minimum population of two hundred thousand (200,000) inhabitants, as
certified by the National Statistics Office, and with the latest annual income of at least Fifty Million Pesos (P50,000,000.00) based
on 1991 constant prices, as certified by the city treasurer, shall be classified as highly urbanized cities.
(b) Cities which do not meet above requirements shall be considered component cities of the province in which they are
geographically located. (Emphasis supplied)

REPUBLIC ACT NO. 9009 February 24, 2001

AN ACT AMENDING SECTION 450 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991, BY INCREASING THE AVERAGE ANNUAL INCOME REQUIREMENT FOR A
MUNICIPALITY OR CLUSTER OF BARANGAYS TO BE CONVERTED INTO A COMPONENT CITY

Section 1. Section 450 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, is hereby amended
to read as follows:

"Section 450. Requisites for Creation. -

(a)A municipality or a cluster of barangays may be converted into a component city if it has a locally generated average annual
income, as certified by the Department of Finance, of at least P100,000,000 for the last two (2) consecutive years based on 2000
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 Land Management Bureau; or

(ii)a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National Statistics Office.

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 special funds, transfers, and
non-recurring income."