Canada’s municipal water utilities are at a critical juncture. Tasked with delivering essential water services, they must do so in an increasingly complex environment marked by uncertainty, risk, and mounting financial pressures. From climate shocks and aging infrastructure to inflation, construction delays, and the urgent need to support accelerated housing development, the challenges are both immediate and long-term.

Recognizing the scale and urgency of these issues, the Municipal Water Consortium is sharpening its focus on supporting the financial sustainability of Canada’s water utilities. This theme will guide our programming over the coming year and beyond, beginning with the upcoming Consortium Leaders Group (CLG) meeting in Ottawa.

Why financial sustainability matters

The financial health of water utilities underpins their ability to deliver reliable, safe, and affordable services to residents. Yet, municipalities across the country are grappling with how to fund billions of dollars in infrastructure upgrades without compromising credit ratings or placing undue burdens on current taxpayers. At the same time, utilities must navigate fluctuating system demands driven by population growth, new developments, and water conservation efforts.

Financial sustainability is not just about balancing budgets—it’s about long-term resilience. It requires thoughtful planning, intergenerational equity, and innovative financing strategies. We heard at Blue Cities 2025 that some municipalities are already leading the way by tying infrastructure investments to actual build-out, leveraging developer prepayment models, and adopting modular infrastructure to improve flexibility. These approaches offer valuable lessons for others facing similar pressures. Achieving financial sustainability also depends on how well municipalities plan for an uncertain future—especially when traditional forecasting methods fall short.

A new approach to planning under uncertainty

Traditional planning methods often rely on historical data and fixed assumptions—about population growth, water demand, peak flow requirements, and more. However, in today’s rapidly changing world, these assumptions may no longer hold true. When they fail, the consequences can be costly: infrastructure may be overbuilt, under-designed, or poorly located, leading to inefficiencies and long-term financial strain.

To address this, the Consortium Leaders Group will be meeting to discuss ways to conduct scenario-based, data-driven planning that explicitly accounts for uncertainty and risk. This approach would enable municipalities to develop long-term financial plans that account for multiple plausible futures, test assumptions, and enable more adaptive, resilient decisions.

Spotlight on the Consortium Leaders Group meeting in Ottawa

The upcoming CLG meeting, which is taking place on September 23-24 in Ottawa, will build on discussions from Blue Cities to focus on how long-term utility planning can support cost optimization while maintaining reliable service levels.

Key objectives of the meeting include:

• Identifying opportunities for cost savings through strategic, evidence-based decision-making that integrates risk and uncertainty.
• Fostering peer-to-peer learning by connecting utility professionals from across Canada to share experiences, challenges, and innovations.
• Building confidence in scenario planning as a practical tool to evaluate trade-offs, test assumptions, and communicate complex planning implications to councils and stakeholders.

By incorporating scenario planning into long-term infrastructure strategies, municipalities can better align investments with future community needs, improve adaptability, and enhance financial resilience.

Looking ahead

The Municipal Water Consortium is committed to helping utilities navigate the evolving landscape of water service delivery. Through collaborative learning, innovative thinking, and a shared commitment to sustainability, we can build a stronger, more resilient future for Canada’s water systems.