Sunday December 28, 2025 | VICTORIA, BC [Posted at 1:31 pm PT]
by Mary P Brooke | Island Social Trends
New housing development necessitates basic structural urban infrastructure such as water and sewage, as well as roads and electrification.
On the water supply side of things, the Capital Regional District (CRD) Regional Water Supply Commission (RWSC) says it is moving forward with a Development Cost Charge (DCC) Bylaw for the Regional Water Supply Service.
The CRD says this follows extensive public engagement (June to November 2024) 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.
Baird is a municipal councillor on District of Highlands council. For several years now he also chairs the CRD’s Juan de Fuca Water Distribution Commission.
Maintain and improve the water system:
The bylaw is to ensure that the cost to maintain and improve the water system of Greater Victoria is 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,” says Baird who has chaired water commission interests at the CRD for several years. He also owns a water-related consulting company.
About development cost charges:
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 CRD said in their December 8, 2025 news release.
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.
Housing cost factor:
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.
Household cost factor:
An increase in the cost of water will impact all households (for household use, food gardens, landscaping) as well as businesses and community management costs.
Timeline:
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.
To support implementation of the program and provide ample notice to the development community, CRD says the program will include:
- A delayed start date of April 2, 2027 to provide a grace period for developers.
- One-year in-stream protection for applications already in process.
Grants in Aid:
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.
Five-year review:
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.
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NEWS SECTIONS: WATER SUPPLY | INFRASTRUCTURE | CAPITAL REGIONAL DISTRICT