As part of the military reforms introduced in 1942 the Republic of the Philippines was divided into ten military districts, each responsible for the administrative control of military units, formations, military schools, and various local military establishments, both of the Regular Army and the reserves. This territorial system was adopted to provide a more efficient management of army units, their training and other operations activities related to combat readiness.
The Military Districts were established as follows:
Military District One: Baguio, Luzon
Military District Two: Tarlac, Luzon
Military District Three: San Fernando, Luzon
Military District Four: Lipa, Luzon
Military District Five: Daraga, Luzon
Military District Six: Iloilo City, Iloilo
Military District Seven: Bacolod, Negros
Military District Eight: Cebu City, Cebu
Military District Nine: Tacloban, Leyte
Military District Ten: Davao, Mindanao
The establishment of five districts on the island of Luzon reflected the new postwar strategic orientation of the Philippine Army, which saw the principal threat being the possibility of renewed Chinese aggression and direct attacks on Luzon.