Proposal to amend the Ontario Water Resources Act to enable the regulation of additional sewage systems under the Building Code to support construction of on-farm worker housing

The government is seeking public feedback on proposed legislative and regulatory changes under the Fighting Delays, Building Faster Act, 2025 to streamline the construction of new homes and infrastructure (e.g., water, wastewater, roads, transit), reduce gridlock, enhance community safety, and improve landlord-tenant frameworks.

INTRODUCTION

Ontario is proposing changes to its sewage system regulatory framework to support the on-farm housing of the 30,000 agricultural workers that annually support the province’s agricultural sector and food-supply chain. This proposal focuses on the proposed legislative changes to the Ontario Water Resources Act, while a complementary ERO posting (#025-0899) by the Ministry of Municipal Affairs and Housing (MMAH) outlines the policy proposal.

This initiative is intended to support the province’s agricultural sector and food-supply chain by allowing these systems to be established faster, while continuing to safeguard human health and maintaining environmental protections.

PROPOSAL OVERVIEW

Ontario is proposing amendments to section 53 of the Ontario Water Resources Act (OWRA) that, if passed, would allow multiple septic systems up to a cumulative design capacity of 50,000 litres per day per property to be regulated under the Building Code Act rather than being required to obtain a sewage works environmental compliance approval under the OWRA. Subsection 53 (6.1) of the OWRA currently sets out a cumulative design threshold of over 10,000 litres per day for when these types of sewage works on a single property require an environmental compliance approval (ECA).

These proposed amendments, if passed, would transfer regulation of these types of septic systems to the Building Code even if their cumulative design capacity is over 10,000 litres per day. These proposed amendments, if passed, would apply only to systems that service on-farm housing for workers on a single agricultural property and meet certain other criteria.

Criteria and rules for the proposed systems would be mainly implemented through regulations and policies. See related ERO #025-0899 by MMAH for further information on possible criteria and rules and opportunities for public feedback.

The proposed amendments to the OWRA are proposed to be introduced in Fall 2025 and if passed, would not come into effect until a corresponding regulation under the Building Code Act has been made, which is anticipated to be in 2026.

The intended outcome of this proposal is that sewage works, that meet certain criteria (see ERO #025-0899), that previously would have been regulated by MECP through an ECA, will instead be regulated by MMAH as sewage systems under the Building Code.

These amendments are part of a multipronged approach by the government to support on-farm worker housing. Please see related ERO notices for other proposal(s) related to on-farm worker sewage treatment.

EXISTING FRAMEWORKS

Under Ontario’s existing sewage frameworks, applicants are currently limited to 10,000 litres per day, per single property of cumulative design capacity, for sewage systems regulated under the Building Code Act. These sewage systems are designed and built according to prescribed standards in the Building Code.

MMAH is responsible for the Building Code Act. Authority for permitting, inspection and compliance activities related to Building Code sewage systems is the responsibility of principal authorities including municipalities, public health units and conservation authorities.

Applicants that currently wish to install septic systems that have a cumulative design capacity of more than 10,000 litres per day on a single property are required under the OWRA to obtain a sewage works ECA from MECP.

The ECA application review assesses and sets conditions to manage risks to human health, the environment and neighbouring property values on a site-specific basis and is intended to address larger and more complex situations. Permitting, inspection and compliance activities for farms with ECAs are the responsibility of MECP.

POLICY RATIONALE

Each year, Ontario farms employ 30,000 agricultural workers to support the planting, growing and harvesting of fruits, vegetables and other high value horticultural crops. These workers are often housed on-farm and require on-site sewage treatment (i.e. septic systems) where municipal servicing does not exist.

The current threshold of 10,000 litres per day of design capacity per single property, under the Building Code, is generally sufficient to service 40 people.

Up to 300 farms in Ontario are expected to benefit from this proposal, based on the estimated number of farms that currently or could soon exceed 40 annual agricultural workers. The proposal to increase the cumulative sewage system design capacity to 50,000 litres per day per agricultural property, could enable farm owners to house approximately 200 workers on a single property and service them with multiple Building Code sewage systems, each system with a threshold of 10,000 litres per day.

Increasing the Building Code’s sewage system cumulative design capacity limit, subject to certain enhanced protective measures, such as greater setbacks (distances) from sensitive features such as wells, is intended to allow for more timely construction of on-farm housing for workers under the Building Code Act while ensuring human health safeguards and environmental protections are in place.