The City of Kitchener is officially set to dole out its first round of water allocation, looking to target affordable housing and other priority projects that were previously brought to a standstill.
It comes following the Region of Waterloo’s ongoing water capacity constraints and shortage throughout the Mannheim Service Area, which forced the region, townships, and the Tri-Cities to halt new developments until the situation could be better fleshed out.
“In June, Kitchener City Council approved the Water Allocation Policy in response to regional water supply constraints,” said the City of Kitchener in a release.
“The policy provides a transparent and consistent framework for directing available servicing capacity to projects that advance housing affordability, community infrastructure, employment growth, and complete communities, while supporting the goals of the City’s Official Plan.”
It said that the city has been allocated 11.43 litres per second of municipal water servicing capacity for the third quarter of 2026.
With that, the city said it hopes that all designated Priority 1 projects will move forward, including affordable and supportive housing developments being delivered “in partnership with other levels of government.”
According to the City of Kitchener, those projects include:
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BUILD NOW Holborn Court – in partnership with Habitat for Humanity Waterloo Region, construction can start on 60 below-market ownership dwelling units for income-qualified households, using City donated land and funding from the federal government’s Housing Accelerator Fund.
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Reception House Wellington Street North – creating 34 new transitional housing units for government-assisted, newly arrived Canadians, ensuring affordability for families and individuals as they transition to a life in their new community. In addition to the City providing land, Reception House received a $300,000 grant through the City’s Not-for-profit affordable rental and co-op housing incentive program, supported through the Housing Accelerator Fund program.
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Fire Station 8 and Housing Development – delivering improved emergency services for the City and 281 below-market and market-rate rental units
“This allocation is about making sure available water capacity is directed to projects that deliver the greatest benefit to our community,” said Kitchener Mayor Berry Vrbanovic.
“By prioritizing affordable housing, essential services and other strategic community investments, we’re addressing today’s needs while advancing the long-term vision of our new Official Plan.”
In total, those listed projects are expected to house more than 7,100 people and provide 3,740 square metres of employment and commercial space.
“The City remains committed to careful and sustainable management of available water resources and is confident that future allocations, together with the Region’s long-term framework, will support the housing and development needed to meet Kitchener’s evolving community needs over the coming decades,” said the city.
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