Mayor Sergio "Serging" Chiong Veloso Osmeña Jr. sometime in July 1956 appointed the following as officers and employees of the Osmeña Waterworks System: Jorge Duterte, Epifanio Aban, Diosdado Abangan, Julian Antiporta, Bonifacio Cabellon, Catalino Cardiente, Vicente Durano, Isidro Godinez, Artemio Luceno, Maximo Robles, Aurelio Samson and Ricardo Zabala.
The appointment made by Mayor Osmeña was based on the provision of Section 21 of the Charter of the City of Cebu. The appointees were also given new appointment with increase in their salaries.
The appointments made by Mayor Sergio Osmena Jr. were thereafter submitted to the Bureau of Civil Service and the Executive Secretary for approval as required by law, however it was disapproved.
Mayor Osmeña in a letter dated October 22, 1957 asked for the reconsideration of the ruling of the Commissioner of Civil Service which was again denied. The City Mayor appealed the ruling of the Commissioner of Civil Service to the President of the Philippines, who through the Executive Secretary disapproved also the appointment.
The appointees of Mayor Osmeña were paid of their salaries up to June 15, 1958 despite of the order of the Auditor General disallowing said payment.
The appointees then filed a case before the Court of First Instance who after trial dismissed the petition directing the Bureau of Civil Service and the Executive Secretary to approve the appointments extended by Mayor Osmeña. It also asked that the Manager of the National Waterworks and Sewerage be prohibited from exercising the power of appointment over the personnel of the Osmeña Waterworks System.
The Manager of the National Waterworks and Sewerage Authority on the other hand asked the City Mayor and other city officers to turn over without further delay the administration, control and supervision and jurisdiction of the Osmeña Waterworks System to them and that the city should not further interfere with the affairs of the system. The NAWASA also asked that Timoteo Y. Omay, the Superintendent of the Osmeña Waterworks System who was unlawfully ousted be restored to his office.
The City Government having lost its case in the lower court appealed to the Supreme Court. The City Mayor at that time was Atty. Ramon Duterte who succeeded Osmeña who resigned in 1957 as Mayor to run for Congress.
The Supreme Court almost a decade after the legal complexities arose, decided on November 29, 1966 through Justice Regala declared that it is the Secretary of Public Works and Communications who is empowered to appoint the officers and employees of the Osmena Waterworks System.
It was in 1910 that the then Council of the Municipality of Cebu created the Osmeña Waterworks Systems, it was in 1912 that the Buhisan Dam, was officially inaugurated in 1912 together with the Fuente Osmeña.
When Act 2009 was enacted creating the Osmeña Waterworks System which made it under the national government in fact in one of its provisions said that the Director of Public Works of the Philippines shall have exclusive charge and control of all work to be done and improvements to be made.
Then on May 9, 1974, Engr. Eulogio Enriquez Borres, Cebu City Mayor approved a resolution to create the Metropolitan Cebu Water District. It was in pursuance to Presidential Decree 198 or the Local Water Utilities Act of 1973 issued by President Marcos to upgrade water local water utilities by providing loan and training assistance to water districts.
On March 12, 1992, the Supreme Court declared with finality declaring that all water districts as government owned and controlled corporations.