Developers urge region to ease water capacity freeze at regional committee meeting

By Amanda Nelson

More than 20 delegations addressed councillors and staff at the Region of Waterloo’s Feb. 10 sustainability, infrastructure and development committee meeting over the Mannheim Service Area water capacity constraint.

Regional Coun. Berry Vrbanovic introduced a motion directing staff to work with area municipalities to use up to 50 per cent of projected new water capacity coming online within the next five years to support development approvals. The motion would allow municipalities to continue processing and approving development applications deemed complete before Dec. 4, 2025.

Local construction businesses, committees and industry associations urged council to approve the motion and improve communication around the region’s water capacity challenges.

Builders and developers told regional council that a lack of clear information remains a core concern, and they are seeking detailed guidance on how development applications will be processed.

Mark Melo, president of IN4Structure Ltd., highlighted the impact of the water capacity constraints on the region’s $1-billion construction industry. He said early engagement with contractors and stakeholders, alignment of growth forecasts with construction timelines, and use of governance tools under Bill 60 are needed to ensure efficient and responsible infrastructure delivery.

“Respectfully, I'm asking this committee to prioritize predictable, long-term infrastructure funding, engage contractors and stakeholders early on, align growth forecasts with real construction timelines, and explore policy and governance tools that help accelerate delivery,” Melo told councillors.

He said workers and their families across the region depend on stable, predictable employment and the uncertainty is being felt well beyond the construction sector.

“Infrastructure investment isn't glamorous,” Melo said. “It's not a ribbon-cutting or a photo opportunity, but when you drive past a fire hydrant or a manhole lid, that's not just metal on the ground. That's the lifeline of this region. That's what keeps homes safe, businesses operating and growth possible.”

Larry Masseo, policy adviser with the Waterloo Region Home Builders’ Association, echoed those concerns and said freezing development approvals could slow economic growth and put jobs at risk.

Melissa Durrell, executive officer with Durrell Communications, speaking on behalf of Build Urban, said the development freeze is already affecting the region’s economy. She cited delayed or cancelled projects including a 300,000-square-foot space and a $500-million advanced manufacturing facility, which she said represent more than $1 billion in lost investment and hundreds of jobs.

“We're seeing firsthand how the development freeze is affecting the broader employment landscape,” Durrell told council. “Projects rely on years of relationship-building with lenders, investors and capital partners to secure financing. When confidence in the region weakens, capital moves to more predictable markets and local job opportunities are lost.”

Vrbanovic’s motion on water capacity constraint solutions was referred to regional council and is scheduled to be considered at the Feb. 25 meeting.