Current Status of Education Development Charges

The Waterloo Region District School Board (WRDSB) currently has an Education Development Charges (EDC) by‑law in effect that expires on May 31, 2026.

Based on a comprehensive review of enrolment projections, available school capacity, and financial information, the WRDSB does not meet the eligibility requirements under Ontario Regulation 20/98 to pass a new EDC by‑law at this time.

As a result, effective June 1, 2026, the WRDSB will no longer be authorized to collect Education Development Charges on new residential or non‑residential development until it qualifies under provincial regulations in a future period.

By‑Law Information

Current Education Development Charges By‑law

The WRDSB’s current Education Development Charge by‑law is in effect until May 31, 2026.

In advance of the by‑law’s expiry, WRDSB staff undertook a detailed assessment of:

  • Fifteen‑year enrolment projections
  • Available pupil places using Ministry‑approved capacity assumptions
  • Outstanding financial commitments and the EDC reserve fund balance
  • Applicable Ministry of Education guidelines

This assessment confirmed that the WRDSB does not meet either of the two eligibility triggers required to pass a new EDC by‑law under Ontario Regulation 20/98 at the time of expiry.

What This Means for New Development

Until May 31, 2026, Education Development Charges continue to apply to eligible development in accordance with the existing by‑law.

Starting June 1, 2026:

  • The WRDSB will not be collecting Education Development Charges
  • No EDCs will be payable to the WRDSB on new residential or non‑residential development
  • The WRDSB will not be able to fund growth‑related land acquisition through EDC revenues

This change is required under provincial legislation.

Why the WRDSB Is Not Passing a New EDC By‑law

Education Development Charges are governed by the Education Act and Ontario Regulation 20/98. To pass a new EDC by‑law when an existing by‑law expires, a school board must meet at least one of the following eligibility conditions:

  • Capacity Trigger: Projected five‑year average enrolment exceeds available pupil places; or
  • Financial Obligation Trigger: Outstanding growth‑related financial commitments exceed the balance of the EDC reserve fund.

Based on current data:

  • Projected enrolment does not exceed available capacity under Ministry‑approved assumptions; and
  • The WRDSB does not have outstanding financial obligations that exceed its EDC reserve fund.

As neither eligibility trigger is met, the WRDSB is not permitted to pass a new EDC by‑law at this time.

Next Steps

The need to plan for and respond to growth does not end when EDC eligibility lapses. The WRDSB will continue to:

  • Monitor enrolment trends, development activity, and school capacity across the region
  • Pursue site acquisition funding through other available mechanisms, such as the Ministry of Education’s Land Priorities process, subject to Ministry approval
  • Report to Trustees should future enrolment growth exceed available capacity, and the WRDSB becomes eligible to pursue a new EDC by‑law

Eligibility for a future EDC by‑law can only occur if the WRDSB meets the capacity‑based eligibility trigger at a future date, as set out in provincial regulation.

2021 EDC By-law

On May 10, 2021, the Waterloo Catholic District School Board (WCDSB) and Waterloo Region District School Board (WRDSB) passed Education Development Charge (EDC) by-laws, which came into force on June 1, 2021. At that time, the boards committed to reviewing EDC inputs such as land value assumptions annually. The regulation permits school boards to increase the quantum of the EDC rate once in a one-year period via an amendment.

The WRDSB passed an amendment to its EDC By-law on May 30, 2022. The new rates came into effect on June 1, 2022.

On Monday, May 10, 2021, the Waterloo Region District School Board (WRDSB) and Waterloo Catholic District School Board (WCDSB) adopted new Education Development Charges By-laws, 2021. Copy of the reports and By-laws (unsigned) are available at: 

The By-law is in effect as of June 1, 2021, for five years (expiring May 31, 2026).

Rates

The following WRDSB Education Development Charge (EDC) rates apply to building permits in the Region of Waterloo:

Residential

  • Residential Rate effective June 1, 2025 – May 31, 2026 (Year 5): $3,448 per unit

Non-Residential

  • Non-residential Rate effective June 1, 2025-May 31, 2026 (Year 5): $1.91 per square foot

Do I have to pay a fee?

Some land uses, like hospitals, government buildings, or farms, do not have to pay EDCs. Please refer to the Education Development Charges By-Law, 2021, for a complete list of exempt land uses.

Unlike some municipalities, we do not have any area-specific exemptions (e.g., core area redevelopment).

A development eligible for a “freeze” of municipal development charges rates must still pay Education Development Charges, which are determined in accordance with O.Reg. 20/98 and board by-laws and are unaffected by changes to the Development Charges Act.

Demolition or redevelopment credits

Demolition or destruction of a building gives credit for redevelopment. Redevelopment must be on the same site. Credits last for two years on residential units and five years on non-residential floor areas.

Residential additions and conversions

We do not charge EDCs on basic home additions, like a sunroom. Sometimes, a charge applies if you add more units to a home. A charge applies if you convert a home within 12 months of moving in. We do not charge if you add:

  • one to two new units to a single-detached home
    • the total gross floor area of the new unit(s) must be smaller or the same size as the existing unit
  • one new unit to all other residential dwellings (e.g., townhouse, apartment, etc.)
    • the total gross floor area of the new unit must be smaller or the same size as the smallest existing unit in the building

For more information, consult the Education Development Charges By-Law, 2021.

Non-residential (industrial) additions

We may not charge EDCs on additions to existing industrial buildings if the gross floor area increases by less than 50 percent. If it increases by more than 50 percent, a charge applies only to the increase over 50 percent.

This does not apply to detached buildings on the same site. For more information, consult the Education Development Charges By-Law, 2021.

EDC resources

More information on the EDC by-law is available in the following documents:

Contact Us

edc@wrdsb.ca