What is the water capacity issue in the Region of Waterloo?

The region has identified a water capacity problem that will impact future development, particularly in the Mannheim Service Area.

When will new developments resume in Waterloo?

New development applications and servicing agreements are paused until the region resolves its water capacity issues.

What is the Region of Waterloo doing about its water supply?

The region is implementing new tracking methods, repairing infrastructure, and planning for new water capacity to address the issue.

Home / Business and Economy / Water Woes: Region Faces Capacity Crisis

Water Woes: Region Faces Capacity Crisis

14 Jan

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Summary

Water capacity issue identified in December 2025.
New developments face delays due to water shortage.
Infrastructure repairs are underway to boost capacity.

Staff in the Region of Waterloo have initiated actions to resolve a significant water capacity issue impacting future development projects. This concern, identified in December 2025 within the Mannheim Service Area, affects Kitchener, Waterloo, and parts of Cambridge, Woolwich, and Wilmot. Existing connections and development applications with permits issued as of 2024 are straining the current water supply.

To manage this, the region is transitioning from an integrated urban system approach to an individual service area method for tracking water capacity. This change follows observations of frequent infrastructure shutdowns and stressed water systems. A crucial short-term solution involves restoring the Mannheim Water Treatment Plant to full capacity, as 16% of the supply is currently offline for repairs.

Mid to longer-term strategies include designing and constructing new water infrastructure. Regional council is expediting repairs and will receive reports on development advisories and water conservation policies. Consequently, new development applications and servicing agreements will be paused until the water capacity issue is resolved, a move that has raised concerns within the development industry about investment and talent retention.