WC146 JanFeb 2026 - Magazine - Page 32
INFRASTRUCTURE
In York Region alone, the 10-year water and wastewater capital plan totals $4.6 billion, with more
than two-thirds of that investment tied directly to growth-related projects.
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WATER C AN ADA • JANUARY/ FEBRUARY 2026
For many municipalities, the math simply doesn’t add up.
Debt limits constrain how much they can borrow. Development charges (DCs) don’t always cover the full cost of growth.
And each new road, pumping station or treatment upgrade
brings long-term operating costs.
This creates a familiar tension: how to encourage new housing and jobs, while ensuring the water systems people rely on
every day remain safe, resilient and affordable.
Water and wastewater infrastructure funding cycle
With so much pressure on limited resources, understanding
how municipalities fund and finance new systems is key. In
fast-growing regions like York Region, water infrastructure
follows a predictable rhythm. First, projects—like new trunk
sewers or water mains—are planned and approved by Council
before the next wave of development.
Because these systems need to be in the ground before homes
can be built, the Region usually issues debt up front to cover the
WAT E R C A N A D A . N E T
York Region
New homes also need access to roads, transit and community
facilities. In Ontario’s two-tier system, the upper-tier regions
(e.g., York Region) typically build and finance the big-ticket
items—like the water systems and arterial roads—while local
municipalities (e.g., City of Markham) manage neighbourhood
streets and local services like parks and recreation.
In York Region alone, the 10-year water and wastewater
capital plan totals $4.6 billion, with more than two-thirds of that
investment tied directly to growth-related projects. These are the
pipes, pumping stations and treatment facilities that will make
new housing possible.
The existing infrastructure is already decades old. In York
Region, the rehabilitation and replacement cost for existing
water and wastewater assets is $205.6 million for 2025. Communities must find the money to keep existing systems in good
repair while also investing billions to service new residents. Add
inflation, supply chain pressure and shifting regulations, and the
balancing act becomes even harder.