The Capital Regional District (CRD) Regional Water Supply Commission (RWSC) is moving forward with a Development Cost Charge (DCC) Bylaw for the Regional Water Supply Service following extensive public engagement and careful consideration of the region’s long-term water infrastructure needs.
“Fairness is at the heart of this decision. We want to balance infrastructure costs fairly between existing users and new development,” said Gord Baird, Chair of the RWSC. “This bylaw will ensure that the costs of maintaining and improving our water system are shared in a way that protects existing households while supporting the infrastructure our growing region needs. It’s about planning responsibly so everybody can count on safe, reliable drinking water for years to come.”
DCCs are a tool for funding water infrastructure projects required to service new development. They ensure that new development contributes to the systems that make our region livable and sustainable. Without DCCs, the cost of expanding and upgrading infrastructure would fall disproportionately on existing ratepayers.
The Local Government Act (LGA) requires local governments to provide a level of financial assistance to a DCC program through a Municipal Assist Factor (MAF). The MAF represents the portion of growth-related costs that would be absorbed by the CRD rather than passed on to new development. At its November 19, 2025, meeting, the RWSC directed staff to proceed with a MAF of 1% for the Regional Water Supply DCC. This means new development will fund 99% of growth-related costs, while existing ratepayers contribute the remaining 1% through water rates. This reflects the principle that growth should pay for growth, and the 1% MAF will lessen the financial burden on existing water users.
The proposed DCC’s with a MAF of 1% would be between $5,087 per apartment unit and $9,044 for a single-family home, and would be charged to new Industrial, Commercial and Institutional developments based on total floor area.
While recognizing challenges within the development sector, maintaining a fair cost-sharing balance is essential to protect ratepayers across the region. Implementing a DCC program with a MAF at 1% allows critical infrastructure to be funded without raising water rates more than necessary for existing users.
To support implementation of the program and provide ample notice to the development community, the program will include:
- A delayed start date of April 2, 2027, providing a grace period for developers.
- One-year in-stream protection for applications already in process.
The Regional Water Supply Commission has also directed staff to investigate a “Waivers or Reductions” bylaw or grant-in-aid program to support eligible projects.
The DCC program is planned to be reviewed every five years to ensure that the cost-sharing arrangements remain equitable and responsive to changing conditions, including population growth, water consumption and capital cost estimates. CRD staff have been directed to prepare the Regional Water Supply DCC Bylaw for review by the RWSC and the CRD Board in early 2026.
The CRD delivers regional, sub-regional and local services to 13 municipalities and three electoral areas on southern Vancouver Island and the Gulf Islands. Governed by a 24-member Board of Directors, the CRD works collaboratively with First Nations and government partners to enable sustainable growth, foster community well-being, and develop cost-effective infrastructure while continuing to provide core services to residents throughout the region. Visit us online at www.crd.ca.
For media inquiries, please contact:
Andy Orr, Senior Manager
CRD Corporate Communications & Engagement
Tel: 250.360.3229
Cell: 250.216.5492
