DACO freezes prices on water, cisterns and equipment: what the order covers and how to report abuse

The Department of Consumer Affairs (DACO) issued Administrative Order 2026-006 freezing prices on bottled water, ice, cisterns, and a broad list of essential water-related products and services across all 78 municipalities in Puerto Rico ¹. The measure took effect July 31 at 6:00 p.m., immediately after Governor Jenniffer González Colón signed Executive Order 2026-035 declaring a drought state of emergency and activating the National Guard ².

DACO Secretary Hiram Torres Montalvo warned that businesses violating the order face administrative fines of up to $10,000 per infraction ¹.

Products and services covered

The freeze applies to an extensive list that goes well beyond the gallon of water:

• Drinking water, ice, and bottled water
• Cisterns and water storage tanks
• Equipment and parts: motors, pumps, valves, sensors, tubing, and pressurizers
• Cistern installation, modification, and repair services
• Containers and tanks for water storage, transport, and distribution
• Water hauling and delivery services
• Any other necessary water-related product or service ¹²

Retailers cannot increase their profit margin above what was recorded before the order took effect. If a supplier notifies a cost increase, the retailer may only adjust the final price while maintaining the previous profit margin. New vendors entering the market during the emergency are limited to a maximum 30% gross margin ¹.

Additionally, all businesses must retain their purchase and sales documentation for one year for possible DACO audits ¹.

The drought in numbers

The measure arrives at a critical moment. According to the U.S. Drought Monitor, 82.32% of the island is under drought conditions, with 24.75% in the severe category ³. Seven of the 19 main reservoirs are outside the safety zone:

• Carraízo (37.96 meters above sea level): under operational adjustments, serving approximately 179,387 customers in San Juan, Trujillo Alto, Carolina, Canóvanas, and Gurabo. The Water and Sewer Authority (AAA) is implementing pressure and flow controls to avoid reaching the rationing stage before mid-August ³.
• La Plata (47.06 meters): under observation, supplying approximately 130,828 customers in Dorado, Guaynabo, Naranjito, Toa Alta, Toa Baja, Vega Alta, Bayamón, Cataño, and Corozal ³.
• Four other reservoirs — Cidra, Río Blanco, Fajardo, and Guayabal — are also under observation ³.

The governor requested the Fiscal Oversight Board grant access to $127 million in federal funds: $61.8 million from the Clean Water State Revolving Fund and $65.2 million from the Drinking Water State Revolving Fund, both designated for critical AAA projects ².

How DACO will enforce

Starting the week of August 4, DACO will deploy inspectors to businesses across Puerto Rico to verify compliance. But enforcement won't be limited to physical stores: desktop operations begin Tuesday to monitor online sales, including Facebook Marketplace and ClassificadosOnline ¹.

"This comprehensive Order establishes the parameters for commercial sales of water-related products and services. I have ordered street and desk operations to ensure compliance," Torres Montalvo said ¹.

What this means for you

If you need to buy bottled water, ice, a cistern, or any part for your storage system, the price you see today is the maximum legal price. No merchant — whether in a store or online — can raise the price to take advantage of the emergency. If a water delivery driver who previously charged you $150 per delivery now wants to charge $250, that is illegal under this order.

The protection applies island-wide, regardless of whether you're in an area with active rationing or not. And DACO won't just wait for complaints — it will actively seek out violations, both on the street and online.

How to do it / Checklist

1. Document current prices — take a photo of the receipt or displayed price for water, ice, cisterns, and equipment you regularly buy. That will be your evidence if prices go up.
2. Save all receipts — if a merchant charges you more than what you paid before the order, the receipt is your proof.
3. Report violations to DACO — send your complaint with evidence (price photos, receipts, screenshots of online listings) to [email protected] ¹.
4. Monitor social media — if you see someone selling water or cisterns at inflated prices on Facebook Marketplace or ClassificadosOnline, you can report it to the same DACO email.
5. Verify before hiring water delivery — ask the price upfront and compare with what they charged before the emergency. If the price increased without documented supplier justification, it's a violation.
6. Check your water schedule — access the AAA app or call 787-620-2482 to verify your service schedule and plan your storage.

What comes next

The price freeze remains in effect until the state of emergency ends or until the DACO secretary orders otherwise — there is no fixed expiration date ¹. If the drought extends into August as meteorologists project, Carraízo is likely to enter the formal rationing stage, which would increase demand for cisterns and bottled water and test the order's effectiveness.

DACO has also indicated that its Compliance Office is available to guide merchants who have questions about how to apply the order without violating it ². The first results from field inspections and digital operations are expected during the second week of August.

---

Sources:

¹ El Nuevo Día, "Congelación de precios por sequía: estos son los productos cubiertos por la orden del DACO," August 1, 2026. ² Primera Hora, "DACO congela los precios de artículos y servicios de primera necesidad ante escasez de agua," August 1, 2026. ³ El Nuevo Día, "En medio de la emergencia por sequía: estos son los niveles de los embalses," August 1, 2026.