Water Utilities

Under the Water Utility Act and the Utilities Commission Act the Comptroller of Water Rights, assisted by staff of the Utility Regulation Section, Water Management Branch, is responsible for the regulation of 178 privately owned water utilities serving approximately 20,000 households in the Province of British Columbia.

What is a Private Water Utility?

A water utility under the Water Utility Act is a person/business who owns or operates equipment or facilities for the delivery of domestic water service to five (5) or more persons or to a corporation for compensation. Private water utilities are usually created by developers to serve rural land development where community water service is required for subdivision approval and where there is no other water purveyor in the area that can provide service. A Water Utility is not a local authority such as a municipality, improvement district or local service area of a regional district and therefore not eligible for government funding such as infrastructure grants.

Why are water utilities regulated?

Private water utilities are regulated to protect the public interest because companies operate like a monopoly with no competition in the area of service they provide. They are responsible to ensure that adequate and safe water service is provided at a fair and reasonable price. Water rates are approved on the basis of collecting sufficient revenues to pay for operating costs including a provision for management fees and a contribution for future replacement of infrastructure.

What are the Utility Regulation Section Responsibilities?

The responsibilities of the Utility Regulation Section falls into two major categories: to assure that water systems installed by land developers are properly designed and constructed prior to the sale of lots, and to assure that the customers of the utility receive acceptable water service at reasonable rates. The Utility Regulation Section staff will assess each application for new systems, as well extensions to existing water systems, by evaluating the design and financial viability. The developer will be required to construct the water system to approve design standards and establish certain contingency funds as part of the approval process. Upon satisfying these requirements a recommendation is made to the Comptroller of Water Rights to issue a Certificate of Public Convenience and Necessity.

These requirements are in addition to approvals required by regional health authorities under the Drinking Water Protection Act and Drinking Water Protection Regulation or licensing of surface water sources under the Water Act and/or any other legislation.

Application Process

The Water Utilities application process requires a Certificate of Public Convenience and Necessity (CPCN) which is granted by the Comptroller of Water Rights (under authority from the Water Utility Act and the Utilities Commission Act). Ministry of Environment's Water Management Branch provides assistance in developing and delivering all of the necessary information required for the application process.

Things you should consider if you are thinking about forming a Water Utility:

• Can another water purveyor in the area provide water service?
• How water utilities fit into the subdivision and land development process.
• The application process for obtaining a Certificate of Public Convenience and Necessity (539kb).
• The water system design requirements.
• The criteria for determining if a water utility will be financially viable.
• What reserve funds will be required and how to determine the amounts.
• How the reserve funds are to be administered.
• The criteria for setting water rates and the filing of a water tariff.
• The approvals required by regional health authorities under the Drinking Water Protection Act and Drinking Water Protection Regulation.
• The licensing requirements for surface water sources under the Water Act if applicable.

Things to know if you own and operate a Water Utility:

• The basic components of the water system including the age, condition and operating features and the long and short term maintenance requirements.
• The rates should be adequate to provide for day to day operation and maintenance as well as to provide a reserve for future replacement.
• How to apply for rate increases and extensions for water service.
• An emergency plan in the event of a major system failure or health risk that requires the notification of your customers.

Things to know if you are a customer of a Water Utility:

• The telephone number or contact for the utility owner/operator.
• Where you can view the Utility's water tariff.
• The terms and conditions for the receipt of water service.
• How to make an inquiry or lodge a complaint.

Other Information:

• Guide to Applying for a Certificate of Public Convenience and Necessity (CPCN) (539kb)
• Design Guidelines for Rural Residential Community Water Systems (767kb)
• Sample Water Tariff Booklet (197kb)
• Practice Directive #1 - Applications for CPC and Necessity and Amendments (95kb)
• Practice Directive #2 - Applications for a Water Tariff and Amendments (95kb)
• Water Utility Guides
• Water Utility Information Bulletins

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