The original water system facilities were constructed by the defunct Tupi Municipal Water System in 1966. The following facilities were constructed: water spring box source no. 1, water spring box source no. 2, distribution pipelines, and water service connections with only 60 service connections covering only one barangay, the Poblacion.
Actual operation of the Tupi Water District began on September 15, 1986, the date when it was created, pursuant to Tupi Sanguniang Bayan Resolution No. 28-A Series of 1986. It was registered in the Local Water Utilities Administration (LWUA) on February 12, 1987 by the issuance of Conditional Certificate of Conformance No. 280 which entitled the Tupi Water District to all rights and privileges authorized under Presidential Decree 198. The Tupi Water District is one among the various areas benefited by Presidential Decree 198, known as the Local Water Utilities Act of 1973, creating the Local Water Utilities Administration to aid and assist provincial, urban water users through loans, technical assistance, training and other forms of assistance.
On September 13, 1991 the Supreme Court ruled out en banc that all Water Districts in the Philippines are declared Government-Owned and Controlled Corporation (GOCC).
Under the Local Water District Manual on Categorization, Re-categorization and Other Related Matters (LWD-MaCRO), the Tupi Water District was categorized as Category “D” effective March 2012 with only four (4) regular plantilla positions.
Tupi Water District is the major water service provider in the Municipality of Tupi. It is currently serving six (7) out of fifteen (15) barangays of its franchise area with 2,076 active service connections as of December 31, 2017, with four (4) deep well and two (2) spring sources.