By authority of the United States, be it enacted by the Philippine Commission, that:
Section 1. Except by special franchise approved by the Philippine Legislature, no hydraulic power rights or franchises shall be granted on waters of the public domain to private persons, associations or corporations, such rights being reserved exclusively for Government which may utilize, develop, or otherwise dispose of same for the benefit of the public: Provided, however, That hydraulic power to be developed for private or domestic use and not for sale to the public and franchises or rights acquired prior to the approval of this Act shall be excepted from the provisions hereof: Provided, further, That nothing in this Act shall be understood as prohibiting or restricting the use for irrigation purposes in accordance with law, of such streams as may not be considered, in the opinion of the Secretary of Public Works and Communications, appropriate or necessary for the development of hydraulic power for public use.
Section 2. All Acts or parts of Acts inconsistent herewith are hereby repealed.
Section 3. This Act shall take effect on its approval.