Proposed Regional Water Supply Development Cost Charge Program

The Capital Regional District (CRD) is working towards implementing a Regional Water Supply (RWS) Development Cost Charge (DCC) Program to help fund eligible growth-related water projects.

DCCs are charges collected by local governments to help fund eligible infrastructure expenditures required to serve population growth. DCCs are regulated by the province and are intended to foster fairness, ensure consistency and promote transparency and equity. The Local Government Act (LGA) sets out the general requirements under which local governments may charge DCCs. Many local governments in BC have established DCC programs in place, including many municipalities in Greater Victoria. Please review our Frequently Asked Questions for more information on DCCs and the proposed RWS DCC program.

Without a DCC program in place, projects required to upgrade infrastructure and expand water supply as the region grows will be fully paid for by water users through increased water rates.

Engagement Update

In June 2024, the CRD completed the initial public RWS DCC Engagement, which consisted of two virtual information sessions and an online survey. Additional feedback on the backgrounder report was closed in November 2024.

• Initial Public Engagement Summary
• Background Report Engagement Summary

Thank you for providing feedback. Your input will help shape this program's development.

Municipal Assist Factor

The 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 water service 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.

Implementation

To support implementation of the program and provide additional 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 and Reductions” bylaw or grant-in-aid program to support eligible projects.

Next Steps

CRD staff have been directed to prepare the RWS DCC Bylaw for review by the RWSC and the CRD Board in early 2026.