Water and Wastewater Public Corporations Act, 2025, S.O. 2025, c. 14, Sched. 16

CONTENTS 1. Definitions 2. Designation of water and wastewater public corporations 3. Water and sewage services 4. Duties 5. Powers of a water and wastewater public corporation 6. Debt 7. Rate plan, etc. 8. Board of directors of a water and wastewater public corporation 9. Issuance of shares 9.1 Limitation on transfer of assets 10. Transfer by-laws 10.1 Employees continued 11. Co-operation by municipalities, access to information 12. Not a Crown agent 13. Assistance to water and wastewater public corporation 14. Water and wastewater public corporation as local board 15. Conflict with other Acts 16. Immunity from liability 17. Crown liability 18. Water and wastewater public corporation liability 19. Proceedings barred 20. Regulations: transfer of ownership and operation 21. Lieutenant Governor in Council regulations Definitions 1 In this Act, “Minister” means the Minister of Municipal Affairs and Housing or any other member of the Executive Council to whom responsibility for the administration of this Act is assigned or transferred under the Executive Council Act; (“ministre”) “water and sewage services” means, subject to the regulations, (a) a system that is used to provide any of the following services or things for the public: (i) water, and (ii) sewage, as defined in subsection 1 (1) of the Municipal Act, 2001, and (b) the service or thing that is provided; (“services d’eau et d’égout”) “water and wastewater public corporation” means a corporation designated under subsection 2 (1). (“société publique de gestion de l’eau et des eaux usées”) Designation of water and wastewater public corporations 2 (1) The Minister may, by regulation, designate a corporation as a water and wastewater public corporation to provide water and sewage services on behalf of the lower-tier municipalities that are prescribed by the regulations. 2025, c. 14, Sched. 16, s. 2 (1). Same (2) A corporation may be designated for the purposes of subsection (1) only if, (a) the corporation is incorporated under the Business Corporations Act; and (b) no shares of the corporation are held by a person other than a municipality, the Province of Ontario, the Government of Canada or an agent of any of them. 2026, c. 8, Sched. 9, s. 1. Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 9, s. 1 - 19/06/2026 Water and sewage services 3 Once a water and wastewater public corporation has been designated for particular lower-tier municipalities, the municipalities shall provide water and sewage services only through that water and wastewater public corporation as of the date prescribed by the regulations. Duties 4 (1) The duties of a water and wastewater public corporation are, (a) to ensure the safe, reliable and sustainable provision of water and sewage services in accordance with applicable legislation; (b) to plan, manage, maintain and invest in water and sewage infrastructure to serve the needs of existing and future users, in a manner that prudently accelerates growth and protects public health and the environment; (c) to provide safe, reliable and sustainable water and sewage services; (d) to establish rates for the provision of water and sewage services; (e) to comply with any requirements prescribed by the regulations; and (f) such other duties as may be prescribed by the regulations. Reports (2) A water and wastewater public corporation shall submit to the Minister an annual report, including audited financial statements and such other reports and information as may be prescribed by the regulations and shall, if required by the Minister to do so, examine, report and advise on any question respecting water and sewage services. Powers of a water and wastewater public corporation 5 Without limiting the capacity, rights, powers and privileges of a corporation under the Business Corporations Act, a water and wastewater public corporation shall have the following powers: 1. Subject to the regulations, if any, imposing and collecting fees or charges. 2. Such other powers as may be prescribed by the regulations. Debt 6 (1) Fees or charges imposed on a person by a water and wastewater public corporation constitute a debt of the person to the corporation. Amount owing added to the tax roll (2) The treasurer of a lower-tier municipality shall, on the request of a water and wastewater public corporation, add fees or charges imposed by the water and wastewater public corporation that remain unpaid after they become payable, including any interest payable, to the tax roll of the property to which water and sewage services were provided and collect them in the same manner as taxes. Request by corporation (3) The regulations may specify requirements in relation to requests made by a water and wastewater public corporation under this section. Rate plan, etc. 7 (1) If the regulations so provide, a water and wastewater public corporation shall submit to the Minister a rate plan for fees or charges specified in the regulations and any other plans prescribed by the regulations. Same (2) The rate plan shall establish the rates to be applied in determining the fees or charges to be imposed and collected. Submission of plans (3) Subject to the regulations, the Minister may consider any of the plans submitted by the water and wastewater public corporation under subsection (1) and may, (a) require the corporation to amend and resubmit the plan; (b) approve the plan that has been submitted or resubmitted by the corporation; or (c) refuse to approve the plan. Refusal to approve the rate plan (4) If the Minister refuses to approve the plan, (a) in the case of a rate plan, the rates of the plan shall be established in accordance with the regulations; or (b) in the case of any other plan, the plan shall be prepared in accordance with the regulations. Plan deemed approved (5) If the Minister has not taken any of the steps described in clauses (3) (a) to (c) within the time period prescribed by the regulations, the plan is deemed to be approved. Board of directors of a water and wastewater public corporation 8 (1) The nomination, appointment, election, resignation or removal of the members of the board of directors, including the chair of the board, and the composition of the board of directors of a water and wastewater public corporation are subject to the regulations, if any. Directors, officers and shareholders to comply with regulations (2) The directors, officers and shareholders of a water and wastewater public corporation shall comply with the regulations and enter into such agreements as required by the regulations. Issuance of shares 9 (1) Subject to subsection (2), the shares and dividends, if any, of a water and wastewater public corporation shall be issued in accordance with the regulations. 2025, c. 14, Sched. 16, s. 9 (1); 2026, c. 8, Sched. 9, s. 2 (1). Limitation on issuance of shares (2) The shares of a water and wastewater public corporation shall not be issued to any person other than a municipality, the Province of Ontario, the Government of Canada or an agent of any of them. 2026, c. 8, Sched. 9, s. 2 (2). Limitation on sale or transfer of shares (3) The shareholders of a water and wastewater public corporation shall not sell or transfer the shares of the corporation, except to a municipality, the Province of Ontario, the Government of Canada or an agent of any of them. 2026, c. 8, Sched. 9, s. 2 (2). Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 9, s. 2 (1, 2) - 19/06/2026 Limitation on transfer of assets 9.1 A water and wastewater public corporation shall not transfer part or all of an asset used to provide water and sewage services unless the board of directors of the corporation has declared, by resolution, that the asset is no longer needed for the purposes of providing those services. 2026, c. 8, Sched. 9, s. 3. Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 9, s. 3 - 19/06/2026 Transfer by-laws 10 (1) The council of a municipality prescribed by the regulations shall, by the date specified in the regulations, make by-laws transferring employees, assets, liabilities, rights and obligations of the municipality, or other body through which the municipality provides water and sewage services, to a water and wastewater public corporation for the purpose of providing water and sewage services, and set out the effective date of each transfer in the transfer by-laws. 2025, c. 14, Sched. 16, s. 10 (1); 2026, c. 8, Sched. 9, s. 4 (1). Same, debentures (1.1) Despite subsection (1), a transfer by-law shall not transfer any liabilities, rights or obligations arising under a debenture issued or authorized to be issued by a municipality or under any other financial instruments or agreements issued or entered into by a municipality for the purpose of long-term borrowing. 2026, c. 8, Sched. 9, s. 4 (2). Same, regulations (2) The regulations may specify requirements for a transfer by-law made under subsection (1). 2025, c. 14, Sched. 16, s. 10 (2). Transfer of non-assignable agreements (2.1) For greater certainty, a transfer by-law may transfer an agreement to a water and wastewater public corporation even if the agreement does not permit an assignment without the consent of the parties. 2026, c. 8, Sched. 9, s. 4 (2). Binding on all persons (3) Despite any general or special Act or any rule of law, including an Act or rule of law that requires notice or registration of transfers, a transfer by-law is binding on the water and wastewater public corporation, the municipality and all other persons as of the effective date set out in the transfer by-law. 2025, c. 14, Sched. 16, s. 10 (3); 2026, c. 8, Sched. 9, s. 4 (3). No consent required (4) A transfer by-law does not require the consent of the municipality, the water and wastewater public corporation or any other person. 2025, c. 14, Sched. 16, s. 10 (4); 2026, c. 8, Sched. 9, s. 4 (4). Assumption of rights, obligations, etc. (5) If a prescribed municipality makes a transfer by-law under subsection (1), the assets, liabilities, rights and obligations of the municipality that are provided for in the transfer by-law, including contractual rights, interests, approvals, registrations and entitlements, that exist immediately before the effective date set out in the transfer by-law continue as the assets, liabilities, rights and obligations of the water and wastewater public corporation and are transferred to the corporation. 2026, c. 8, Sched. 9, s. 4 (5). Effect of transfer (6) A transfer under a transfer by-law made under subsection (1) does not, (a) constitute a breach, termination, frustration or repudiation of any agreement, including a collective agreement, an employment contract or an insurance contract; (b) constitute an event of default or force majeure; (c) constitute a breach of any Act, regulation or municipal by-law; (d) give rise to a breach, termination, repudiation or frustration of any licence, permit or other right; (e) give rise to any right to terminate or repudiate an agreement, licence, permit or other right; or (f) give rise to estoppel. 2026, c. 8, Sched. 9, s. 4 (5). Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 9, s. 4 (1-5) - 19/06/2026 Employees continued 10.1 (1) Employees who are transferred under a transfer by-law made under subsection 10 (1) become employees of the water and wastewater public corporation affected by the transfer by-law as of the effective date set out in the transfer by-law. 2026, c. 8, Sched. 9, s. 5. Same (2) For all purposes, the employment of the employees immediately before and after the transfer is continuous. 2026, c. 8, Sched. 9, s. 5. Same (3) For all purposes, including the purposes of an employment contract, a collective agreement and the Employment Standards Act, 2000, the employment of the employees is not terminated or severed and those employees are not constructively dismissed because of the transfer. 2026, c. 8, Sched. 9, s. 5. Terms of employment (4) All rights, duties and liabilities relating to all employees of a municipality who are transferred under the transfer by-law that are vested in or bind the municipality affected by the transfer immediately before the effective date set out in the transfer by-law are vested in or bind the water and wastewater public corporation instead of the municipality as of the effective date. 2026, c. 8, Sched. 9, s. 5. Same, former employees (5) The Minister may, by regulation, provide that subsection (4) applies to specific rights, duties and liabilities relating to former employees of a municipality affected by a transfer under a transfer by-law. 2026, c. 8, Sched. 9, s. 5. Retroactive regulation (6) A regulation made under subsection (5) may, if it so provides, be effective with respect to a period before it is filed so long as that period commences no earlier than the effective date set out in the transfer by-law. 2026, c. 8, Sched. 9, s. 5. Corporation as successor employer (7) A transfer under a transfer by-law made under subsection 10 (1) is deemed to be a sale of a business for the purposes of section 69 of the Labour Relations Act, 1995 and section 13.1 of the Pay Equity Act and those sections apply to the transfer. 2026, c. 8, Sched. 9, s. 5. Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 9, s. 5 - 19/06/2026 Co-operation by municipalities, access to information 11 A member of a council of a municipality, an employee or agent of a municipality or a member, employee or agent of a local board of a municipality shall, (a) co-operate with the Minister, any person appointed by the Minister or any entity determined by the Minister; and (b) on request, provide to the Minister, a person appointed by the Minister or an entity determined by the Minister an existing record or a new record created by the municipality, even if the record includes privileged or confidential information. Not a Crown agent 12 A water and wastewater public corporation is not an agent of the Crown and is not an administrative unit of the Government of Ontario. Assistance to water and wastewater public corporation 13 Despite section 106 of the Municipal Act, 2001, a municipality may provide the types of assistance described in that section to a water and wastewater public corporation. Water and wastewater public corporation as local board 14 A water and wastewater public corporation is not a local board except for the purposes prescribed by the regulations. Conflict with other Acts 15 In the event of a conflict between this Act or a regulation made under it and the Business Corporations Act or a regulation made under that Act, or a provision in any other Act or in a regulation made under any other Act respecting corporations, the transfer of assets, liabilities, rights or obligations or water and sewage services, this Act or the regulation made under it prevails to the extent of the conflict. Immunity from liability 16 (1) No cause of action arises against a person set out in subsection (2) as a direct or indirect result of, (a) the enactment, amendment or repeal of any provision of this Act; (b) the making, amendment or revocation of any provision of a regulation made under this Act; (c) the passage, amendment or repeal of any provision of a by-law made under section 10; or (d) anything done or not done in accordance with any provisions referred to in clause (a), any regulations referred to in clause (b) or any by-laws referred to in clause (c). Persons referred to (2) The persons referred to in subsection (1) are, (a) the Crown or any current or former member of the Executive Council or employee, officer or agent of or advisor to the Crown; or (b) any municipality that is prescribed for the purposes of section 2 or 10, or any current or former member of the council of such municipality, or employee, officer or agent of or advisor to such municipality. No remedy (3) Except as otherwise provided under this Act, no costs, compensation or damages, including for loss of revenue or profit or any other alleged loss, whether direct or indirect, are owing or payable to any person by a person referred to in subsection (1), and no remedy, including a remedy in contract, restitution, tort, a remedy for misfeasance, bad faith, or a breach of trust or fiduciary obligation, any equitable remedy or any remedy under any statute, including the Business Corporations Act, is available to any person against any person referred to in subsection (1) in connection with anything referred to in that subsection. Proceedings barred (4) No proceeding that is directly or indirectly based on or related to anything referred to in subsection (1) may be brought or maintained against any person referred to in that subsection. Application (5) Subsections (3) and (4) do not apply with respect to an application for judicial review or a claim for constitutional remedy, but do apply with respect to any other court, administrative or arbitral proceeding claiming any remedy or relief, including specific performance, an injunction, declaratory relief or the enforcement of a judgment, order or award made outside Ontario. No costs awarded (6) No costs shall be awarded against any person in respect of a proceeding that cannot be brought or maintained under subsection (4). No expropriation or injurious affection (7) Nothing referred to in subsection (1) constitutes an expropriation or injurious affection for the purposes of the Expropriations Act or otherwise at law. Proceedings by Crown not prevented (8) This section does not apply with respect to proceedings brought by the Crown. Crown liability No personal liability 17 (1) No cause of action arises against any current or former member of the Executive Council or any officer, employee or agent of the Crown for any act done in good faith in the exercise or performance, or intended exercise or performance, of the person’s powers, duties or functions under this Act or for any alleged neglect, default or other omission in the exercise or performance in good faith of those powers, duties or functions. Crown remains vicariously liable (2) Despite subsection 8 (3) of the Crown Liability and Proceedings Act, 2019, subsection (1) of this section does not relieve the Crown of liability to which it would otherwise be subject as a result of the acts or omissions of a person specified in subsection (1). No liability for acts or omissions of others (3) No cause of action arises against the Crown or any person specified in subsection (1) for an act or omission of a person other than the Crown or a person specified in that subsection, if the act or omission is related, directly or indirectly, to the exercise or performance, or intended exercise or performance, of a power, duty or function under this Act. Proceedings by Crown not prevented (4) This section does not apply with respect to proceedings brought by the Crown. Water and wastewater public corporation liability No personal liability 18 (1) No cause of action arises against any current or former director, officer or employee of any water and wastewater public corporation for any act done in good faith in the exercise or performance, or intended exercise or performance, of the person’s powers, duties or functions under this Act or for any alleged neglect, default or other omission in the exercise or performance in good faith of those powers, duties or functions. Water and wastewater public corporation vicariously liable (2) Subsection (1) does not relieve a water and wastewater public corporation of liability to which it would otherwise be subject as a result of the acts or omissions of a person specified in subsection (1). Proceedings by Crown not prevented (3) This section does not apply with respect to proceedings brought by the Crown. Proceedings barred 19 (1) No proceeding shall be commenced, (a) against any person specified in subsection 17 (1) in respect of a matter referred to in that subsection; (b) against the Crown or any person specified in subsection 17 (1) in respect of a matter referred to in subsection 17 (3); or (c) against any person specified in subsection 18 (1) in respect of a matter referred to in that subsection. Same (2) Subsection (1) does not apply with respect to an application for judicial review or a claim for constitutional remedy, but does apply with respect to any other court, administrative or arbitral proceeding claiming any remedy or relief, including specific performance, an injunction, declaratory relief, a remedy in contract, restitution, unjust enrichment or tort, a remedy for breach of trust or fiduciary obligation or any equitable remedy, enforcement of a judgment, order or award made outside Ontario or any form of compensation or damages including loss of revenue or profit. Proceedings by Crown not prevented (3) This section does not apply with respect to proceedings brought by the Crown. Regulations: transfer of ownership and operation 20 (1) The Minister may make regulations which, in the opinion of the Minister, are necessary or desirable to provide for, govern or facilitate the transfer of the ownership and operation of water and sewage services to a water and wastewater public corporation, including the transfer of employees, assets, liabilities, rights and obligations from a municipality, or other body through which the municipality provides water and sewage services, to a water and wastewater public corporation. 2025, c. 14, Sched. 16, s. 20 (1). Regulations: general (2) Without limiting the generality of subsection (1), the Minister may make regulations, (a) providing that part of a system or specified services or things are excluded from the definition of “water and sewage services” for the purposes of this Act; (b) prescribing lower-tier municipalities for the purposes of subsection 2 (1); (c) prescribing a date for the purposes of section 3; (d) prescribing requirements for the purposes of clause 4 (1) (e); (e) prescribing other duties for the purposes of clause 4 (1) (f); (f) prescribing reports and information for the purposes of subsection 4 (2), including the content of the reports, whether the reports must be made available to the public and the time and manner in which they must be provided; (g) prescribing other powers for the purposes of section 5; (h) specifying requirements for the purposes of section 6 (3); (i) prescribing municipalities and specifying a date for the purposes of subsection 10 (1); (j) specifying requirements for the purposes of subsection 10 (2); (k) prescribing purposes for the purposes of section 14; (l) governing water and wastewater public corporations, including, (i) imposing requirements, conditions, restrictions and limitations on the corporations and their shareholders, directors and officers, (ii) governing the election, nomination, appointment, resignation or removal of the members of the board of directors, including the chair of the board, of a water and wastewater public corporation, including requirements respecting conflicts of interest, the independence and competencies of directors, the composition of the board of directors and the board’s quorum, (iii) governing the proceedings of the meetings of shareholders and directors, including the quorum of shareholders, and (iv) requiring a water and wastewater public corporation and its shareholders to enter into agreements, prescribing the content of the agreements and requiring the corporation to modify, terminate or suspend the agreements; (m) governing the transfer, issuance, redemption or purchase of shares and dividends of a water and wastewater public corporation, including, (i) determining the number, classes and series of shares of a water and wastewater public corporation and their rights, privileges, conditions and restrictions, and prescribing their initial issuance and subsequent issuances, (ii) determining the consideration received in an exchange for shares in a water and wastewater public corporation, and (iii) prescribing a formula for the redistribution, redemption or purchase of the shares of a water and wastewater public corporation and specifying a frequency of such redistribution, redemption or purchase and the manner in which it is to be conducted; (n) governing the amalgamation, continuance, winding up and dissolution of a water and wastewater public corporation or other changes affecting the organization, reorganization, structure, assets or undertakings of the corporation, including any acts or transactions that require the approval of shareholders; (o) imposing conditions and limitations on the power of a water and wastewater public corporation to invest money or to incur debt, whether by borrowing money or in any other way; (p) prescribing provisions of Acts and regulations that do not apply to the Minister, a municipality, a transfer by-law made under section 10, a water or wastewater public corporation or the corporation’s shareholders, directors, officers or employees or that apply to such persons with necessary modifications; (q) imposing requirements, limitations or conditions on a municipality and a water and wastewater public corporation with respect to the debt of a lower-tier municipality referred to in subsection 2 (1) or a municipality referred to in subsection 10 (1) incurred for the financing of capital works that are transferred under a transfer by-law made under subsection 10 (1), including requiring a water and wastewater public corporation to make payments of a specified amount to the municipality in relation to the debt. 2025, c. 14, Sched. 16, s. 20 (2); 2026, c. 8, Sched. 9, s. 6 (1). Conflict with transfer by-law (2.1) In the event of a conflict between a regulation made under clause (2) (j) and a transfer by-law made under subsection 10 (1), the regulation prevails. 2026, c. 8, Sched. 9, s. 6 (2). Rolling incorporation by reference (3) A regulation made under clause (2) (l) that incorporates another document by reference may provide that the reference to the document includes amendments made to the document from time to time. 2025, c. 14, Sched. 16, s. 20 (3). Application to existing agreements (4) A regulation made under this section may, if it so provides, specify that it applies to an agreement that was entered into before the day the regulation comes into force, including an agreement that was entered into before the day the Fighting Delays, Building Faster Act, 2025 received Royal Assent. 2025, c. 14, Sched. 16, s. 20 (4); 2026, c. 8, Sched. 9, s. 6 (3). Regulations: fees or charges (5) For the purposes of paragraph 1 of section 5, the Minister may make regulations, (a) governing the power of a water and wastewater public corporation to impose and collect fees or charges, including specifying services, activities and costs for which fees or charges may or must be imposed and collected; (b) providing that fees or charges in a specified class of fees or charges which are added to the tax roll under subsection 6 (2) have priority lien status; (c) providing for conditions or limitations that a water and wastewater public corporation must comply with in respect of the imposition fees or charges and the collection of any amounts owing to the corporation. 2025, c. 14, Sched. 16, s. 20 (5). Regulations: legal effect of transfer under transfer by-law (6) The Minister may make regulations specifying the legal effect of a transfer under a transfer by-law or of a transfer by-law made under subsection 10 (1), including their effect on existing contractual rights, property rights or other rights and obligations, and their effect on any transferred employees. 2026, c. 8, Sched. 9, s. 6 (4). Regulations: agreements (7) The Minister may make regulations, (a) requiring parties specified in the regulation to enter into agreements and prescribing the content of those agreements; (b) requiring one or more parties specified in the regulation to modify, terminate, extend or suspend any agreements; (c) modifying, terminating, extending or suspending any agreements. 2026, c. 8, Sched. 9, s. 6 (4). Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 9, s. 6 (1-4) - 19/06/2026 Lieutenant Governor in Council regulations 21 (1) The Lieutenant Governor in Council may make regulations defining or clarifying the meaning of any words or expressions used in this Act that are not defined in this Act. Same (2) For the purposes of section 7, the Lieutenant Governor in Council may make regulations, (a) for the purposes of subsection 7 (1), (i) prescribing the content of a rate plan and specifying the fees or charges that must be included in the plan, and prescribing procedures and requirements that the water and wastewater public corporation must follow when preparing a rate plan, (ii) prescribing other plans and the content of those plans; (b) imposing limitations and conditions on the powers of the Minister under subsection 7 (3); (c) governing rates to be established in the rate plan of a water and wastewater public corporation for the purposes of clause 7 (4) (a); (d) specifying the time and manner for preparing the plans for the purposes of clause 7 (4) (b); (e) prescribing a time period for the purposes of subsection 7 (5). 22 Omitted (provides for coming into force of provisions of this Act). 23 Omitted (enacts short title of this Act). ______________