City explores establishment of Municipal Service Corporation for Water and Wastewater Services

The City of Kingston is considering the creation of a Municipal Service Corporation (MSC) to manage water and wastewater services as the city continues to prepare for significant growth. The establishment of an MSC aims to enhance operational efficiency, improve service delivery and ensure sustainable infrastructure development. 

A number of municipalities across Ontario are moving toward this model of service delivery as a means to keep pace with the rising costs of delivering water and wastewater services and maintaining the infrastructure necessary to serve communities. 

"Kingston’s growing population and aging infrastructure exceeds current financial and human resource capabilities,” says City of Kingston CAO, Lanie Hurdle. 

“The cost of the maintenance and development of new infrastructure places financial pressure on the municipality." 

An MSC would help meet increased service needs by offering greater financial flexibility, opportunities for revenue generation and dedicated governance focused on water and wastewater services. 

An MSC is a corporation established by a municipality under Ontario Regulation 599/06 of the Municipal Act, 2001, to manage specific services or assets. An MSC is not a private company, and it remains wholly owned by the municipality and is still subject to public accountability and municipal oversight. 

Kingston Hydro currently operates under an MSC model and operations will follow a similar structure. 

Get Involved 

Community members are invited to review the business case and share their feedback by completing the survey on Get Involved Kingston before Jan. 9, 2026. A report with public feedback will be brought to City Council in early 2026.