Local Government Code of 1991 (Republic Act No. 7160).

This Code establishes the system and defines powers of provincial, city, municipal and barangay governments in the Philippines. It provides for a more responsive local government structure instituted through a system of decentralization whereby Local Government Units are delegated more powers, authority, responsibilities and resources.
It also empowers local governments to enact local tax measures, including real property taxes and it assures the local governments a share in the national internal revenue.
The Code defines the powers of Local Government Units and specifies programmes that are transferred to them, including: agricultural extension and on-site research; infrastructure projects; field health and hospital services; social welfare services; community-based forestry programmes and other investment support services.
The Code further provides for: powers of a city or municipality to authorize the reclassification of lands; duties of national government agencies to maintain an ecological balance; relations with people’s and non-governmental organizations; settlement of boundary disputes; property and supply management in the local government units; penalties; etc.