City of Kitchener directs first water allocation to affordable housing and priority community projects
The City of Kitchener has received its first municipal water servicing capacity allocation from the Region of Waterloo and will use its recently approved Water Allocation Policy to advance housing and community-building projects that deliver the greatest benefit to residents.
The City has been allocated 11.43 litres per second of municipal water servicing capacity for the third quarter of 2026. This first allocation will support affordable and supportive housing, community infrastructure, and other priority developments that align with Kitchener's new Official Plan and the needs of a growing city.
In June, Kitchener City Council approved the Water Allocation Policy in response to regional water supply constraints. 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.
"This allocation is about making sure available water capacity is directed to projects that deliver the greatest benefit to our community," said 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."
Beginning this week, City staff will start issuing water servicing capacity to eligible developments. Staff anticipate that all Priority 1 projects can proceed, including affordable and supportive housing developments being delivered in partnership with other levels of government.
The current intake includes proposals that would house more than 7,100 people and provide 3,740 square metres (40,000 square feet) of employment and commercial space.
Key projects will include:
- 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 represents the first round under both the Region of Waterloo's municipal allocation process and Kitchener's Water Allocation Policy. Additional allocation rounds are anticipated as more servicing capacity becomes available.
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.
Learn more about the Water Allocation Policy.
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About the City’s New Official Plan
Council has approved the City of Kitchener’s new Official Plan, developed following public engagement with thousands of residents for Kitchener 205. The new plan will guide how Kitchener grows over the coming decades, supporting housing, transportation, climate resilience, economic development, and complete communities. The Official Plan has been submitted to the Province of Ontario for approval before coming into effect.
The new Official Plan focuses on strengthening neighbourhoods, increasing housing options and affordability, and making it easier, safer, and more sustainable for residents to access the places and spaces that matter most.
Learn more about the Official Plan and Kitchener 2051 on our website.
For more information:
Corporate Communications and Marketing
City of Kitchener
media@kitchener.ca
Land acknowledgement
The City of Kitchener is situated on the traditional territory of the Chonnonton, Anishinaabeg, and Haudenosaunee Peoples. We recognize our responsibility to act as stewards for the land and honour the original caretakers who came before us. Our community is enriched by the enduring knowledge and deep-rooted traditions of the diverse First Nations, Métis, and Inuit Peoples who live in Kitchener today.