Water Pricing in Canada: Recent Developments

Abstract

The purpose of this chapter is to provide a critical review of past and current practices related to water pricing in Canada’s irrigation, residential, and industrial sectors, as well as water pricing related to the provision of environmental services. The chapter demonstrates that water prices in most sectors have historically been quite low, relative to the costs of supply and relative to international standards. Both residential water users and irrigators have had subsidized access to water distribution networks, and self-supplied water users (such as large manufacturing facilities) have gained access to water supplies at little cost. More recently, some provinces, irrigation districts, and municipalities have raised rates to promote conservation and increase the supply network’s financial sustainability. The chapter concludes by pointing to a number of important emerging issues related to water pricing.