Proposed amendments to the Municipal Act, 2001 to transfer jurisdiction over water and wastewater to the lower-tier municipalities in Peel Region and a standalone statute to authorize the establishment of water and wastewater public corporations

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.

MMAH is proposing legislative amendments to the Municipal Act, 2001 (MA) to transfer jurisdiction over water and wastewater from Peel Region to the lower-tier municipalities of Mississauga, Brampton and Caledon and introduction of a new standalone statute to set out a framework for a new water and wastewater (w/ww) public corporation.

Current Proposal:

MMAH is proposing amendments to the Municipal Act, 2001 (MA) to transfer jurisdiction over water and sewage (wastewater) public utilities from Peel Region to the municipalities of Mississauga, Brampton and Caledon effective January 1, 2029, or a different date as prescribed by the Minister.

MMAH is also proposing a framework for a new water and wastewater public corporation (standalone legislation) to deliver water and wastewater services, including legislative authority to:

• Designate corporations as water and wastewater public corporations – to be prescribed by regulation.
• Require prescribed municipalities to deliver water and wastewater exclusively through a water and wastewater public corporation beginning on a date as prescribed.

Amendments to the Municipal Act, 2001

Transfer jurisdiction over water and wastewater services from Peel Region to the municipalities of Mississauga, Brampton and Caledon, effective January 1, 2029, or a different date as prescribed by the Minister.

Amendments to prevent the transfer of jurisdiction over water and wastewater back from the lower-tier municipalities using existing authority to transfer services in the Municipal Act, 2001.

New Legislative Framework for Water and Wastewater Public Corporations Act

Introduce a framework that authorizes the Minister to require municipalities to provide water and wastewater services exclusively through a new water and wastewater public corporation. The new framework will include legislative authority for the Minister to:

• Designate corporations as water and wastewater public corporations by regulation.
• Require prescribed municipalities to deliver water and wastewater exclusively through a water and wastewater public corporation beginning on a date as prescribed.
• Make regulations including, but not limited to:
  • Duties and responsibilities for the water and wastewater public corporation.
  • Requirements related to the nomination, appointment, election, or removal of members of the board of directors of the corporation.
  • Powers for the public corporation to impose and collect fees and charges. If required by LGIC regulation, the Minister of Municipal Affairs and Housing would have oversight powers over rate plans (and additional plans that may be prescribed in regulations).
  • Providing for additional transitional matters.

A corporation would be incorporated under the Ontario Business Corporations Act at the direction of the Minister who would have the authority to designate the corporation as a water and wastewater public corporation. Subject to future regulations setting out the share allocation, this first corporation would be jointly owned by Mississauga, Brampton and Caledon.

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.