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 service population growth. DCCs are regulated by the Province and are intended to foster fairness, ensure consistency and promote transparency and equitability. 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 most 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 we completed our initial RWS DCC Engagement which consisted of two virtual information sessions and an online survey. Additional feedback on the backgrounder report was sought via an online feedback form which closed in November 2024. Thank you for providing feedback. Your input will help shape the development of this program.

Canada Housing Infrastructure Fund

In February 2025, the CRD Board passed a motion to temporarily freeze DCC fee increases to allow the CRD and its member municipalities to be eligible to apply for federal funding through the Canada Housing Infrastructure Fund. This freeze requires the CRD to pause the increase and collection of any DCC fees until April 2027. This freeze does not impact the CRD's ability to move forward with the creation and approval of a new Regional Water Supply DCC bylaw.

Next Steps

The CRD is working towards establishing a DCC bylaw for the Regional Water Supply. In order to establish a new DCC program, municipalities and local government are required to create a DCC bylaw which establishes the terms and conditions under which DCC fees can be collected.

The CRD is currently consulting with First Nations on the application of the Regional Water Supply DCC program. Once First Nations consultation is complete, a draft bylaw will be submitted to the Regional Water Supply Committee and CRD Board for approval.

If the DCC bylaw is approved by the Regional Water Supply Commission, the new bylaw is anticipated to be adopted by December 2025.

Implementation of the Regional Water Supply DCC program is subject to the bylaw being approved by the Provincial Ministry of Municipal Affairs and Housing and the CRD Board.

Once the bylaw is adopted a grace period for the collection of DCCs will be extended to April 2027 to align with the Canada Housing Infrastructure Fund DCC freeze.