Requisites for Creation.
Section 135
SEC. 135. Requisites for Creation.—(1) A municipality may be created out of a contiguous territory which has a population of at least ten thousand, as certified by the National Census and Statistics Office, and has an average estimated annual income, as certified by the provincial treasurer, of at least two hundred thousand pesos for the last three consecutive years, and the creation thereof shall not reduce the population and income of the mother municipality or municipalities at the time of said creation to less than the minimum requirements under this section. The territory need not be contiguous if it comprises two or more islands. (2) The average estimated annual income shall include the income allotted for both the general fund and the infrastructure funds, exclusive of trust funds, transfers and nonrecurring income. (3) The territorial jurisdiction of a new municipality shall be properly identified by metes and bounds or by natural boundaries.