Water is a precondition to food production and economic growth. As population increases and the economy develops, more water is withdrawn from rivers and aquifers to support the production of food, fiber and services for the growing population with a higher standard of living. Increasing demands for water by agricultural, domestic, industrial and hydropower sectors have led to increasing competition and water supply shortages. Unabated demand for water by different sectors will lead to overexploitation of water resources and degradation of natural water environment. The impacts on climate change exacerbate water availability issues and the risks from extreme flood and drought events in the region.

The study covers watersheds draining to Lanao Lake. These watersheds drain to Lake Lanao and are plagued with several issues. Among these are (1) changes in climatological conditions affecting rainfall irregularity and intensity and reduction of annual rainfall; (2) land degradation as a cause of deforestation, quarrying and agricultural activities encroachment; (3) uneven distribution of water among water users and others (DENR-INREMP). 
Lake Lanao is situated in Lanao Del Sur of the Autonomous Region of Muslim Mindanao (ARMM) which is considered as the largest lake in Mindanao and second in the Philippines. Moreover, it is considered as one of the 15 ancient lakes in the world. The lake was declared as watershed reserve area under the National Protected Areas System (NIPAS) Act or Republic Act 7586. The lake has 5 watersheds with 336 hectares of inland water and 36,300 hectares surface area. Lake Lanao is facing several issues and challenges. A study conducted by Jose et. al. in 1996 observed that there was a decrease of water inflow during ENSO events in Lake Lanao. If unmonitored, this could be a potential threat to energy sector since 70% of electricity used by Mindanao is sourced from hydroelectric plants installed in the Lake and Agus River. Protection of the watersheds draining to the Lake is very important. 
Effective management of water resources requires comprehensive understanding of the interrelations between the different factors that influence water catchment behavior and the resulting water yields. The project will generate science-based information to support formulation of plans and programs for sustainable management and conservation of freshwater resources. Sustainable management leads to water-secure future and sustain economic growth.