Canada’s municipal water utilities are entering a period of significant reform as provinces across the country reevaluate the structure and oversight of water and wastewater services. At the same time, global economic uncertainty, shifting trade dynamics, and ongoing infrastructure supply-chain pressures are increasingly challenging how municipalities plan for, procure, and deliver critical water infrastructure their communities rely on.

Taken together, these forces are reshaping the operating environment for utilities. They’re complicating decision-making and raising important questions about how to maintain safe, reliable, and affordable water services in a rapidly changing context.

In this environment, shared learning is more important than ever. Through the Municipal Water Consortium, the Canadian Water Network (CWN) is working with utilities to explore how they can adapt while upholding strong governance, accountability, and oversight.

Governance reform on the horizon

Recent developments suggest governance reform will become a defining issue for Canada’s water sector in the near future. Recommendations from Calgary’s Bearspaw South Feedermain Independent Panel, along with Ontario’s new Water and Wastewater Public Corporations Act, point to a potential shift from municipal departments toward separate service corporations.

Supporters suggest this model could strengthen operational focus, clarify responsibilities, and improve long-term asset management. However, structural changes alone will not guarantee stronger systems. As highlighted in January’s CEO Reflections article, effective governance will continue to depend on clear accountability for system performance, robust risk management, and strong provincial oversight. Maintaining these guardrails will be essential to ensuring Canadians continue to receive safe, reliable, and affordable water services.

Navigating new procurement pressures

At the same time, municipalities are facing growing uncertainty in infrastructure procurement. Ongoing tariff discussions and shifting trade dynamics between Canada and the United States are affecting the cost and availability of materials used in water infrastructure projects.

Water utilities rely on specialized equipment sourced through complex global supply chains. When tariffs fluctuate or trade conditions change, municipalities may face higher costs, procurement delays, or limited supplier options, complicating long-term planning and infrastructure delivery.

For a sector already managing aging infrastructure and rising investment needs, these uncertainties reinforce the importance of collaboration and information-sharing across utilities.

Supporting municipalities through change

To help utilities navigate these challenges, the Municipal Water Consortium has been convening conversations with municipal leaders across the country.

Earlier this year, we hosted a roundtable discussion with utility leaders focused on strengthening relationships between utilities and municipal councils. Effective governance requires alignment between those responsible for operating water systems and the elected officials who ultimately make key funding and policy decisions. Building a shared understanding of risks, priorities, and long-term investment needs is essential to ensuring that councils can champion sustainable water services in their communities.

More recently, we brought utility leaders together to examine the implications of the Bearspaw South Feedermain Independent Panel report. While the report focused on a specific incident in Calgary, many of the underlying issues — such as aging infrastructure, evolving regulatory expectations, complex risk environments, and internal governance challenges — are shared by utilities across Canada. The discussion explored how stronger governance and risk management practices can support the continued delivery of safe and reliable water services.

In partnership with Housing, Infrastructure and Communities Canada, we also convened municipal utility and procurement professionals to examine the potential impacts of a “Buy Canadian” approach to infrastructure purchasing. Participants explored how such policies might affect municipal procurement decisions, including the challenges of navigating international trade agreements and addressing domestic shortages for certain specialized products.

Looking ahead

The conversations underway across the sector reflect a shared recognition that change is coming and that preparation is essential. These themes will continue to shape upcoming discussions at Blue Cities and at the next Consortium Leaders Group meeting in Gatineau, Quebec on June 8.

By bringing municipal leaders together to share experiences, examine emerging policy directions, and explore practical solutions, the Municipal Water Consortium aims to ensure that utilities remain well-equipped to manage both ongoing and sudden change.

Through collaboration, informed dialogue, and strong governance, Canada’s water sector can navigate this evolving landscape while continuing to deliver the safe and reliable water services that communities depend on every day.