January 13th 2026
The Ford government approved more than 100 permits in the past five years allowing industry to take water for industrial and commercial use in Waterloo Region, despite the province’s own data showing that some of these permits carried the highest risk of unacceptable environmental impact. Now, the region says it has hit a water capacity limit so serious it has been forced to halt new development.
Experts say the water shortage is a serious concern made worse by the Ford government’s fast-tracked approvals for water-taking and development in a rapidly growing region.
The province sorts water-taking permits into three categories: Category one is low risk, category two is medium risk and category three is the highest risk. According to provincial records, some of the permits are located in environmentally sensitive areas and fall into category three, which indicates water-taking that is anticipated to have the highest risk of unacceptable environmental impact or interference — such as seriously affecting nearby rivers, wetlands, groundwater levels or other water users.
Provincial data also shows hundreds of other preexisting and still active water-taking permits issued in the region for commercial and industrial purposes, including golf courses, manufacturing, aggregate extraction and other activities.
Many of those permits allow millions and in some cases billions of litres of water each year — with cumulative volumes reaching into the hundreds of billions of litres — for terms of up to 10 years.
There is no public indication that the government conducted any environmental assessments or water capacity studies before issuing these permits.
The provincial ministry of environment did not respond in time for publication.
According to provincial records, some of the permits are located in environmentally sensitive areas and fall into category three, which indicates water-taking that is anticipated to have the highest risk of unacceptable environmental impact.
The region said in an email response that it recently discovered a shortage as it took a fresh look at its water supply strategy. It said the effects of conservation efforts are “plateauing” and water infrastructure is being shut down more frequently and for longer — all while demand is climbing every year.
It said, as a result of its water shortages it cannot approve new development applications or enter into new agreements that would add additional demand to the local water system.
Hugh Simpson, a senior research scientist at the Morwick MG360 groundwater research institute at the University of Guelph and a former Region of Waterloo hydrogeologist, said the current water problem has been building for years — and has been worsened by the Ford government weakening long-term planning rules.
He described this as a “systematic erosion” of land use and water planning across the province that made it easier for development to move ahead even when water and wastewater systems were not ready.
“That took away the ability to say ‘no,’” he said.
Heavy reliance on groundwater
Most of the water coming out of taps in the Waterloo region comes from groundwater; about 80 per cent is drawn from more than 100 wells belonging to the municipality. The remaining 20 per cent comes from surface water from the Grand River.
About a quarter of the region’s total water supply was used for commercial and industrial purposes.
The region says it does not track how many companies hold permits to take water locally or how much they are allowed to withdraw each year; that responsibility lies with the provincial Ministry of the Environment, Conservation and Parks.
The Ford government has changed Ontario’s rules several times in ways that make it easier for companies to take water. Some changes allow water-taking permits to be transferred between companies without a new public review. Other changes allow mining companies to take water for early-stage exploration without a permit.
Nandita Basu, a professor at the University of Waterloo and Canada research chair in global water sustainability and ecohydrology, said the water capacity problem in a region with such a heavy reliance on groundwater is serious.
“Groundwater is not endless. You cannot keep pumping it forever,” Basu told Canada’s National Observer. “When many water-taking permits are issued in a short time it puts pressure on the system.”
Basu said some uses take water that never returns, like watering golf courses or cooling data centres, both of which remove water by evaporation, so it doesn’t return to the system.
She also said high-risk permits can harm nature. Water systems are connected, so damage in one place can affect ecosystems elsewhere — pumping groundwater can pull water from nearby streams or wetlands. Meanwhile, those wetlands and other natural areas are being developed, which makes it harder for supplies to recharge.
“When a region is growing, water needs are going to increase,” she said. That makes it critical to plan in a sustainable way. She said better indoor and outdoor water conservation must be built into growth while it is happening, not added later.
Basu said economic growth can benefit a region, but only if it is balanced with strong environmental protections. Protecting ecosystems and water supplies, she said, is essential for long-term stability. “It is important to think about that growth in a holistic way and figure out ways to grow so that we do not impact our ecosystem.”
Faster growth, weaker rules
The Ford government has passed several new laws to speed up development. One of the most controversial is Bill 185 — known as the Cutting Red Tape to Build More Homes Act — which limits the ability of the public and municipalities to appeal development decisions. The government has also weakened the role of conservation authorities that once helped oversee water use and quality, as well as stripped cities of the power to set their own green building standards.
Ford has heavily used minister’s zoning orders (MZOs), which allow the province to override local planning rules. A recent report from Ontario’s auditor general found deep flaws in the province’s process for fast-tracking development, adding the government issued far more MZOs than in the past and often without clear reasoning, environmental review or public consultation.
The Ford government argues these changes and MZOs are a necessary part of its goal to build 1.5 million homes by 2031. But experts have long warned these laws weaken protections for farmland, wetlands and groundwater recharge areas and put more pressure on already strained water systems.
Simpson, the hydrogeologist, told Canada’s National Observer the province also removed much of the Region of Waterloo’s planning authority, leaving smaller municipalities on their own, often without the technical resources needed to manage complex water and land-use decisions.
The result, he said, has been more unplanned development including large projects that were never part of the official plan or the long-term water strategy. These projects were not matched with proper water and wastewater planning.
“The real problem is that water is there,” Simpson said, “but it’s not in the right place and there are no mechanisms to move it to where it needs to be.”
A pause during a housing crisis
The water shortage and ensuing development freeze comes at a time when Waterloo Region — one of the fastest-growing areas in the province — is already struggling with housing shortages.
Catherine Fife, the NDP MPP for Waterloo and critic for economic development, job creation and trade, said the water capacity issue and the region’s decision to pause development is alarming.
“It is a huge issue and you’re right to be concerned. Everybody should be concerned,” she said.
Fife told Canada’s National Observer it is unprecedented that a region facing a housing crisis is now unable to approve new development.
Fife blamed provincial policy decisions for weakening the systems that once protected the region’s long-term interests.
“We are dealing with a very irresponsible provincial government that doesn’t recognize the importance of conservation to the economy and to growth potential,” she said.
Fife said the province has pushed municipalities to build more housing while failing to support the infrastructure needed to do it in a sustainable way.
She said the Ford government rolled back many environmental regulations and changed planning policies that it argued amounted to “red tape” and slowed development, including in the Region of Waterloo. Now those fast-tracked approvals appear to be having the opposite effect.
“The Region of Waterloo right now does not have the resources to address the issue with the urgency that is needed,” she said. “I don’t think this issue is going away anytime soon.”
