Water Capacity Constraints Are Halting Growth in Waterloo Region

New development approvals across the region have paused due to water servicing limitations in the Mannheim service area. The industry is aligned on the issue — and ready with solutions.

A Coordinated Industry Response

Reopen Waterloo Region is a joint industry alliance advancing water capacity solutions to get Waterloo Region open again.

Waterloo Region Leaders across construction, development, and real estate have come together to present a unified, solutions-focused response.

This coalition is aligned on the urgency of the issue and committed to working collaboratively with Regional Council and the Province to move forward.

Our mission is to:

  • Restart Development

  • Restore Investment

  • Renew Growth & Prosperity

The Issue!

In December 2025, the Region of Waterloo confirmed a water capacity constraint in the Mannheim service area—impacting Kitchener, Waterloo, and parts of Cambridge, Woolwich, and Wilmot.

As a result, the Region has paused new servicing agreements, resulting in a de facto freeze on development approvals.

Tens of thousands of new housing units currently in the planning process are at risk of delay.

Why This Matters!

Economic & Community Impacts:

  • Reduced housing constraints, amplifying an exisiting and ongoing housing and development crisis

  • Higher construction costs, passed on to buyers and renters

  • Delayed growth-related capital projects and infrastructure investment, sue to loss of regional development charge revenues

  • Loss of skilled trades and construction workers to other jurisdictions

  • Increased legal exposure where existing service agreements guarantee capacity

  • Reduced economic competitiveness, reduced and talent attraction and a weakened economy for Waterloo Region.

Key Technical Concerns

Industry stakeholders have identified several concerns with the current approach:

  • Introduction of a 20–30% resilience buffer without prior industry consultation or approval

  • Reliance on modelling based on extreme and unlikely scenarios

  • Use of non-transparent criteria to define “sustainable groundwater capacity”

  • Double-counting of risk factors already addressed through provincial permitting

  • Loss of up to 40% of intended capacity at the Mannheim facility due to overlapping constraints

  • Limited consideration of interim engineering solutions, such as pumping or system adjustments

A Practical Path Forward

Viable solutions are available — and can be implemented quickly.

  1. Implement a risk-based interim approach
    Balance system resiliency with measured allocation to new development

  2. Deploy existing infrastructure funding
    Utilize nearly $100M in available development charge reserves

  3. Advance shovel-ready projects
    Prioritize projects already identified in the Region’s capital plan

  4. Reassess water supply opportunities
    Review past well studies and test production potential

  5. Expand system connectivity
    Strengthen regional interconnections to improve resilience

A Critical Moment for Action

The upcoming Regional Council discussions represent an important opportunity to take coordinated, evidence-based action.

Delays will continue to impact housing supply, economic growth, and investment across Waterloo Region.

Coalition Partners

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Moving Waterloo Region Forward

The industry remains committed to working constructively with the Region of Waterloo and the Province of Ontario to resolve water capacity constraints.

The housing and infrastructure needs of our growing community demand timely, transparent, and practical solutions.