Liangeñous are very abundant of water sources from numbers of springs and surfaces, where early inhabitants relied on their water needs. The existence of water supply in Lianga, Surigao del Sur was made possible on 1968 by the National Waterworks and Sewerage Authority (NAWASA) now already defunct. In 1972, the management of Poblacion water system was transferred to the municipal government of Lianga. It was then, in 1979 through his initiative, former late Mayor Enrique C. Layno, Jr. by virtue of Municipal Resolution No. 17 Series of 1979. Following, the Local Water Utilities Administration awarded the Conditional Certificate of Conformance (CCC) No. 104 on December 04, 1979 .Thereafter, water district acquired the ownership and management of the two water system thru the Deed of Donation executed by the donors. Ricardo Tubo Ho appointed as 1st General Manager operated the water district with three (3) personnel and accompanied by the stewardship of its Board of Directors comprised of late Chairman Modesto F. Villasanta, Vice Chairman Hernando C. Layno, late Secretary Beda A. Alvizo, Treasurer Agueda MU. Otagan &late Bienvenido A. Tamayo as Member.

Sometimes in 1985, the water district was granted by Local Water Utilities Administration amounting to P9.10M loan to finance the construction/improvement of Poblacion and Brgy. Diatagon, Lianga, SdS water supply systems and the amount availed was P6.80M. March 1986 when the Brgy. Diatagon IIP was completed increasing its no. of service connections to 1,230. A number of years the district experienced economic turmoil started on 1987, the pulled out operation of four coal mining companies due to the worsening peace & order situation; 1988, water shortages at Brgy. Diatagon was became alarming due to active scale formation reducing the diameter of pipeline from 150mm to 75mm, thereby, incurring huge maintenance costs of LIWAD for removal of scale; 1991, DENR ordered the stoppage of Lianga Bay Logging Company due to demonstrations/strikes, staged by labor union resulting to paralyzed logging operation which resulted to enormous disconnected water services bloated for 40% of existing service connections.

On May 15, 1995, Ricardo T. Ho retired reaching the age of 60 and on January 1996, Wilfredo G. Sanchez was appointed as the new General Manager with Board of Directors composed of Chairman Angelito M. Dy, Vice Chairman Romualdo T. Susi, Secretary Meneleo O. Dollano, Treasurer Agueda MU. Otagan and late retired District Supervisor Lilian G. Layno as Member. On December 2000, drilling of well with 50m depth was completed through the RUDIF of Former Senator Loren Legarda, Congressman Prospero Pichay, Jr., EDF of Former Governor Primo T. Murillo and LGU – Lianga EDF through Former Mayor Leonor S. Sarmen. After 10months operation, the deep well experienced saline intrusion and the periodic intrusion was attributed to seasonal tidal variation that tends to affect the groundwater being harnessed by the well. The scenario cited made the financial operation of the district negative resulting to accumulate the large amount of unpaid debt service to LWUA. The Board of Directors and Management requested a condonation on the interest and penalties billed thereat. However, the Board of Trustees of LWUA granted the financial relief assistance only.

Three decades after its creation, LIWAD has encountered odds & evens yet it stood firm and kept a never ending dream to face the challenges. The dreamed became a reality when the KfW – PTWSP I & II was completed on year 2005 followed by NLIF funded by DOH on year 2009. LIWAD today, recognized by Local Water Utilities Administration (LWUA) as Category D water district in consonance to Local Water District Manual Categorization, Re-categorization and Other Related Matters (LWDMaCRO) by Department of Budget and Management (DBM) committed to supply efficient and effective water supply to its consuming public.