Update Announcement
This notice was originally published on March 30, 2026, with a consultation period ending on April 29, 2026. It was republished on April 17, 2026, to extend the consultation period to May 14, 2026.
This consultation was open from:
March 30, 2026
to May 14, 2026
Decision summary
MMAH proposed legislative amendments to guarantee public sector ownership, help ensure contracts and employees that move to a corporation transfer uninterrupted; and prohibit the transfer of long-term debt from municipalities to a WWPC as well as a consequential legislative amendments to the Safe Drinking Water Act, 2002.
Decision details
Introduction:
On March 30, 2026, the government introduced Bill 98, Building Homes and Improving Transportation Infrastructure Act, 2026, which received Royal Assent on June 2, 2026.
The government sought public feedback on proposed legislative changes under schedule 8, Safe Drinking Water Act, 2002 and schedule 9, Water and Wastewater Public Corporations Act, 2025, within the proposed Building Homes and Improving Transportation Infrastructure Act, 2026 to further support housing, economic, and infrastructure development, and advance key transportation and transit priorities.
The legislative changes build upon the water and wastewater public corporation framework developed under the Water and Wastewater Public Corporations Act, 2025. It also addresses government commitments made in Spring 2024 as part of the work undertaken by the Peel Region Transition Board, and in Spring 2025, as part of announcements related to the Protect Ontario by Building Faster and Smarter Act, 2025.
Current Proposal:
Legislative Amendments to Water and Wastewater Public Corporations Act, 2025
As part of the Bill 98, the Ministry of Municipal Affairs and Housing (MMAH) has proposed legislative amendments to the Water and Wastewater Public Corporations Act, 2025.
These include:
- Explicitly prohibiting private ownership in any new Water and Wastewater Public Corporation (WWPC) to maintain 100% public sector ownership.
- Supporting the continuation of existing contracts so that existing contracts are not affected by a transfer to a new WWPC. This includes contracts such as employment or insurance, or a collective agreement.
- Clarifying that certain rights (such as successor, employment, and pay equity rights) are carried forward to a new WWPC. This would include Minister regulation-making authority to help ensure continuity of services related to contracts and employees that are transferred to a new WWPC.
- Prohibiting the transfer of water and wastewater debt from municipalities to the WWPC, while creating new Minister regulation-making authority to enable future regulations to address matters related to municipal debt.
Legislative Amendment to the Safe Drinking Water Act (MECP)
A legislative amendment to the Safe Drinking Water Act, 2002 was proposed to clarify that drinking water systems owned by WWPCs constitute municipal residential drinking water systems, which would ensure that applicable Safe Drinking Water Act, 2002 provisions would apply to them.
Effects of consultation
MMAH received a total of 35 comments from individuals submitted to the Environmental Registry of Ontario (ERO), and 1354 letters were received through email. As of May 19, 2026, 44 comments were received after the consultation deadline.
Generally, many comments supported the proposed amendments that clarify 100% public-sector share ownership, support continuity of services related to the transfer of employment/collective agreements and contracts and confirm continued application of drinking water protections.
However, many comments, raised concerns that the framework could still enable “privatization in practice” through private involvement in management, operations, governance, or financing, and that key decisions being deferred to future regulations creates uncertainty for municipalities and ratepayers.
Additional highlights included:
- Public ownership must be unambiguous and fully protected in legislation.
Many submissions supported limiting share ownership to public entities but called for clearer definitions, particularly of “agent”, to avoid perceived pathways for private control, influence, or profit extraction. - Governance, transparency, and local accountability are central concerns.
Numerous comments emphasized that water and wastewater decisions should remain locally accountable and transparent, with meaningful municipal oversight. - Financial risks associated with the WWPC, including the servicing of existing debt require greater clarity and appropriate safeguards.
- While many supported prohibiting the transfer of long-term municipal debt to a corporation, multiple municipalities and associations cautioned this could leave municipalities servicing the debt without associated revenues, potentially shifting costs onto property taxes and impacting municipal borrowing capacity.
- Municipal autonomy and the scope of ministerial powers were frequently raised.
Several submissions expressed concern that expanded regulation-making authorities and the ability to prescribe or alter agreements could reduce municipal discretion. - Public health, regulatory continuity, and source water protection remain priorities.
- Affordability and evidence of benefits were mixed and debated.
Overall, the consultation emphasized broad support for public sector ownership and drinking water safety protections, alongside consistent requests for clearer legislative language (especially around “agent”), stronger accountability mechanisms, and greater certainty on financial and governance details to be set through future regulations.
The government will continue working closely with the municipalities that will be designated to provide water and sewage services through a corporation to ensure a smooth and respectful transition.
Comments received through the environmental registry and email will continue to be considered by the government as it moves forward with implementation of the WWPC framework set out in the Water and Wastewater Public Corporations Act, 2025, including development of regulations. This includes feedback on the importance of transparency, accountability, affordability, asset management, and meaningful public engagement in both the establishment and ongoing operations of the new corporation.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
777 Bay St., 13th Flr.
Toronto,
ON
M7A 2J3
Canada
Connect with us
Contact
Localgov@ontario.ca
777 Bay St., 13th Flr.
Toronto,
ON
M7A 2J3
Canada
Original proposal
Proposal details
The government is seeking public feedback on proposed legislative changes under the proposed Building Homes and Improving Transportation Infrastructure Act, 2026 and related regulatory changes to further support housing, economic, and infrastructure development, and advance key transportation and transit priorities.
This proposal addresses government commitments made in Spring 2024 as part of the work undertaken by the Peel Region Transition Board, and in Spring 2025, as part of announcements related to the Protect Ontario by Building Faster and Smarter Act, 2025. It also builds upon the Water and Wastewater Public Corporation framework developed under the Water and Wastewater Public Corporations Act, 2025.
Current Proposal:
Legislative Amendments to Water and Wastewater Public Corporations Act, 2025
As part of the MMAH Spring Bill, MMAH is proposing legislative amendments to the Water and Wastewater Public Corporations Act, 2025 (WWPCA).
These include:
- Explicitly prohibiting private ownership in any new water and wastewater public corporation to maintain 100% public sector ownership.
- Supporting the continuation of existing contracts so that existing contracts are not affected by a transfer to a new water and wastewater public corporation. This includes contracts such as employment or insurance, or a collective agreement.
- Clarifying that certain rights (such as successor, employment, and pay equity rights) are carried forward to a new water and wastewater public corporation. This would include regulation-making authority to help ensure continuity of services related to contracts and employees that are transferred to a new water and wastewater public corporation.
- Prohibiting the transfer of water and wastewater debt from Peel Region to the water and wastewater public corporation, while creating new regulation-making authority to enable future regulations to address all matters related to municipal debt.
Legislative Amendment to the Safe Drinking Water Act (SDWA - MECP)
- Legislative amendment to the Safe Drinking Water Act, 2002 (SDWA) to clarify that drinking water systems owned by WWPCs constitute municipal drinking water systems and such that applicable SDWA provisions would apply to them.
Through a separate posting, the Ministry will be inviting municipalities interested in adopting the water and wastewater public corporation model to submit a comment outlining their detailed interest. This input will help the Ministry determine next steps and support future expansion.
Analysis of Regulatory Impact
The current proposal is part of a multi-year pathway, the complete costs of which would need to be considered cumulatively at the time of local implementation.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
777 Bay St., 13th Flr.
Toronto,
ON
M7A 2J3
Canada
Comment
Commenting is now closed.
This consultation was open from March 30, 2026
to May 14, 2026
Connect with us
Contact
Localgov@ontario.ca
777 Bay St., 13th Flr.
Toronto,
ON
M7A 2J3
Canada
Comments received
Through the registry
31By email
1,354By mail
0