Apply for water supply capacity allocation

Developers proposing a project in the City of Waterloo must apply for assigned water supply capacity. 

Learn when to apply, what information to provide, how the city reviews and prioritizes applications and where to get help.

On this page:

1. Water Supply Allocation Policy
2. Check if the policy applies to your development
3. Apply for water supply capacity
4. What happens after you apply
5. How the city prioritizes applications
6. Contact planning staff

Water Supply Allocation Policy

The Region of Waterloo supplies municipal water. The City of Waterloo distributes water within the city and manages development approvals.

The Region has identified a water supply constraint in the Mannheim Service Area and is working to complete upgrades that will increase the amount of water it can supply. It will provide area municipalities, including the City of Waterloo, with a share of new water capacity every 3 months.

The city’s Water Supply Allocation Policy sets out how available water capacity is assigned to developments when it becomes available.

The policy is intended to:

• support consistent and transparent decision-making
• manage growing demand and competing development requests
• consider infrastructure constraints
• support sustainable growth and water conservation
• advance community and municipal priorities

Read the Water Supply Allocation Policy (PDF).

Check if the policy applies to your development

The policy generally applies to developments that create new or increased demand on the municipal water system, including: 

• new development that requires a new or upgraded water service
• new lots, blocks or units created through subdivision or condominium plans, part-lot control exemptions, or a “Certificate of Official” issued for a consent or severance application under the Planning Act
• building permit or development applications that create new or increased water demand
• draft-approved subdivisions without a valid servicing agreement with the Region

Some developments are excluded, including certain renovations, minor additions, changes of use and projects that do not create a material increase in water demand.

Review the development exclusions in the policy (PDF), starting on page 10.

Contact planning staff if you are not sure whether the policy applies to your project.

Apply for water supply capacity

If you are proposing a development project on serviced lands in the City of Waterloo, you must apply for an allocation of water supply capacity.

You'll need this information to complete the application:

• registered owner information
• proponent or authorized agent information, if required
• professional engineer information, if required
• property details, including the address, property tax roll number and area in metres squared
• development application or permit details, including reference numbers
• the existing and proposed type and number of residential units or beds
• the existing and proposed gross floor area of any non-residential spaces
• copies of any Forward Looking Servicing Agreements (FLSAs) that may be required
• anticipated application submission, approval, construction and occupancy dates
• details about affordability, partnerships and funding
• details about your water supply capacity request and any previously-assigned water capacity
• a copy of a report prepared by a licensed professional engineer confirming the development’s water demands if it requires a flow rate of more than 1 litre per second

If you're not the registered property owner, also include: written proof that you are authorized to act and sign on the property owner’s behalf.

Apply for an allocation of water supply capacity

What happens after you apply

The City of Waterloo's Commissioner of Integrated Planning and Public Works decides how available water capacity is assigned.

Applications are expected to be reviewed every 3 months, or as new water capacity becomes available.

They will be reviewed using:

• the Water Supply Allocation Policy

• the City of Waterloo Prioritization Framework

• any secondary criteria set out in the policy

• the water capacity available from the Region of Waterloo

Following a review, the city may:

• issue a Water Allocation Confirmation Letter to some applicants
• enter into a Forward Looking Servicing Agreement
• notify unsuccessful applicants that capacity was not yet been assigned

Developers that receive a Water Allocation Confirmation Letter must sign and return it to the City of Waterloo by email to planning@waterloo.ca. Once the Commissioner is satisfied, they will sign the Water Allocation Confirmation Letter to confirm the final decision.

Submitting an application does not guarantee that the application is complete or that water capacity will be assigned.

Information collected in applications will be used to calculate the requested water demand on the system. It will also help the city to track and report on assigned water capacity.

How the city prioritizes applications

Water capacity assignment decisions are guided by the prioritization framework set out in the Water Supply Allocation Policy. The framework works alongside the city’s existing development application approval process to ensure that water capacity is shared in a way that is fair, clear, consistent, and supportive of city priorities.

The framework groups projects into 5 priority levels.

Priority 1 – essential projects

Includes some:

• affordable housing projects
• long-term care facilities
• emergency and public services
• health care facilities
• significant employment development
• building permit applications submitted before key policy dates

Priority 2 – priority projects

Includes some:

• housing with an affordable housing component
• supportive and co-operative housing
• low water use development
• post-secondary projects with public benefits

Priority 3 – important projects

Includes some:

• purpose-built rental housing
• market housing with earlier purchase commitments
• earlier complete Planning Act applications
• small-scale housing projects

Priority 4 – development projects

Includes some:

• market housing without earlier purchase commitments
• Planning Act applications submitted after December 22, 2025
• moderate water users

Priority 5 – emerging projects

Includes some:

• subdivision applications filed after December 22, 2025
• projects that depend on speculative or unfunded water supply expansion

The city may also consider:

• the amount of affordable housing
• how close the project is to construction
• measurable water conservation measures
• the date of the related development application
• the balance of residential and non-residential development

Receiving a higher priority does not guarantee that water capacity will be assigned. The city may limit or withhold capacity when demand exceeds what is available.

Review the full prioritization framework in the policy (PDF), starting on page 19.