First-ever NIA finds 11% of Canada’s water, wastewater assets in poor or very poor condition

The Canadian Infrastructure Council has released Canada’s first National Infrastructure Assessment (NIA) amid a growing housing crisis driven by rapid population growth and a pace of housing delivery that cannot keep up. The urgency is underscored by the report’s finding that more than $126 billion worth of housing-enabling infrastructure is already in poor or very poor condition and at risk of near-term failure. 

The report warns that many of the systems required to support new homes, including water, wastewater, transit, and waste management, are aging, lack capacity, and are increasingly vulnerable to climate impacts.

Building Foundations for Tomorrow: Assessing Housing-Enabling Infrastructure Across Canada brings together population projections, infrastructure asset conditions, and climate considerations at a national scale for the first time.

“Grounded in data, research, and insights from across sectors and regions in Canada, this first NIA highlights both the scale of Canada’s core infrastructure challenges and opportunities ahead,” said Jennifer Angel, Chair of the Canadian Infrastructure Council, in a statement.

According to the assessment, housing construction cannot accelerate without parallel investments in the systems that make communities functional and livable. Water and wastewater networks, waste management systems, public transit, and active transportation infrastructure are described as essential foundations that must keep pace with population demands and climate realities.

In 2022, the report states that more than 11% of Canada’s water and wastewater assets were rated in poor or very poor condition, representing an estimated $107 billion in infrastructure at risk. Water losses have also worsened: leakage increased from 13% of total potable water use in 2011 (673 million litres) to 17% in 2021 (806 million litres). That loss is nearly equivalent to all the potable water consumed in British Columbia in 2021 (807 million litres). Canada has long had higher leakage rates than peer countries, largely due to insufficient leak detection, repair, and other water loss control practices. These gaps also drive higher energy and resource use and leave systems more vulnerable to water main breaks and other service disruptions.

Total potable water use in Canada reached 4.9 billion m³ in 2021. Households accounted for the largest share at 55%, followed by industry at 28%, with distribution system losses making up the remaining 17%. Even with a decade-long decline in water use, Canada’s per capita consumption remains high by global standards. In 2021, average daily use across all end users — including water lost through leakage — was 401 litres per person, down from 485 litres in 2011 but still significantly higher than most peer countries.

The report draws on extensive engagement with experts and interest holders across the country, reflecting a wide range of regional perspectives. The Council says this input has helped build a more coordinated and evidence-based approach to long-term planning

Meeting Canada’s housing and infrastructure needs over the next 25 years will require what the assessment calls a “transformative shift” in how infrastructure is planned, financed, maintained, and delivered. The Council intends the NIA to serve as a resource for governments, operators, and investors as they navigate these decisions.

The Canadian Infrastructure Council was launched on December 3, 2024, as an expert advisory body mandated to deliver Canada’s first National Infrastructure Assessment. Its work draws on broad engagement with industry, academia, governments at all levels, and Indigenous and community organizations.

Report’s Key Insights:

1. Better management and maintenance of existing infrastructure are essential to reduce risks and costs. 
2. Higher-density development makes more efficient use of existing infrastructure and supports green space preservation. 
3. Access to clean water, sanitation and public transit and active transportation remains uneven across the country. 
4. Infrastructure planning must reflect regional and community-specific conditions, including population and climate. 
5. Complex approval, regulatory layers and governance structures, together with aggregated taxes and charges, slow down housing construction.
6. Labour shortages and supply chain issues are increasing costs and causing delays. 
7. Public funds alone are insufficient; private sector participation is crucial. 
8. Many infrastructure systems were designed for a stable climate and are not resilient to current and future conditions. 
9. Reliable, accessible data is needed to support infrastructure decision-making at all levels. 
10. Nature should be integrated into how we plan, design and build infrastructure.