Applying Manitoba's Water Policies - Government of Manitoba

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Applying the PoliciesWater SupplyPOLICY 4.3The cost of developing, operating, and maintaining the water resource infrastructure shall beapportioned among the beneficiaries in accordance with their share of the benefits.BackgroundDirect costs of water supply infrastructure includethe costs of constructing, operating, maintaining, andrefurbishing water supply dams and reservoirs, watersupply pipelines and diversions, water treatment facilities,and water distribution systems. Indirect costsinclude costs of collecting, treating, and disposing ofdomestic sewage and industrial discharges resultingfrom water use, as well as environmental costs anddamages related to water supply, water use, andwastewater discharges.The allocation of costs and benefits of water supplyinfrastructure is complicated because of the numberof interests involved. All three levels of government– federal, provincial, and local – as well asindustry and individuals are likely to be involved infunding the construction or operation of some elementof the supply infrastructure. Beneficiaries mayinclude the primary user of the water, whether it befor domestic, municipal, agricultural, industrial, irrigation,recreation, or other uses, or they may includethose who benefit indirectly from water use throughthe resulting economic activity related to manufacturing,processing, sales, transportation, and serviceindustries.In the past, the primary water users have usuallypaid only a small portion of the full cost of water supply,while the remaining major portion of the costshave been funded through the public tax system.In developing water supply infrastructure, economicsof scale should be pursued, wherever possible,by developing additional infrastructure capacity toaccommodate additional uses. Decisions to developwater supply projects and decisions of project scaleshould be based on full knowledge of each participant’sportion of the costs and benefits.In apportioning costs of water supply infrastructure,all direct and indirect costs, whether related tothe water supply, wastewater disposal, or environmentalimpacts, must be taken into account. Primarywater users or participants in water development projectsshould pay a fair share of water supply projectcosts, based first on the extent to which each user benefitsfrom the project, and secondly on the extent towhich each particular use affects the cost of the project.The public tax system should legitimately pay aportion of the water supply costs to reflect societalbenefits in the form of ecosystem maintenance andincreased economic activity, incomes, and tax revenueresulting from the water development.Intent1. To enhance the economic viability of watersupply infrastructure.2. To ensure fair apportionment of water supplyinfrastructure costs.Application1. The Government of Manitoba will:• undertake, in cooperation with other levels of governmentand water user groups, planning and economicstudies and strategies which consider:- all practical water supply and wastewater managementoptions,- all potential water uses and user groups,- potential environmental impacts, and- costs and benefits specific to various water usecategories.46
Applying the PoliciesWater Supply• explore water pricing structures and mechanismswhich reflect the true cost of water supply, wastewatermanagement, and environmental impacts.• review and modify arrangements for financing watersupply and wastewater management projects, andfacilitate agreements among various levels of governmentand water user groups to ensure fair apportionmentof capital, operating, and maintenancecosts of water supply and wastewater infrastructures.3. Local water user groups can:• participate in local and regional planning and economicstudies and strategies related to water supplyand wastewater management.• participate with the provincial government andother levels of government in exploring water pricingstructures and mechanisms directed at infrastructurecost recovery.• review and modify legislation to ensure that it supportsthe user-pay principle.• undertake promotional initiatives to enhance publicunderstanding and the application of the user-payprinciple.2. Municipal councils and other local jurisdictionalbodies can:• participate in regional planning and economic studiesand strategies related to water supply and wastewatermanagement.• participate with the provincial government and usergroups in exploring water pricing structures andmechanisms which reflect the true cost of water supplyand wastewater management, and which apportionwater supply infrastructure costs fairly.• ensure that all licensed water uses are monitored toenable accurate cost accounting and fair cost recovery.• ensure that revenues from water use and wastewatercharges are dedicated to water and wastewaterinfrastructure replacement, upgrading, and maintenance.47
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Applying Manitoba's Water Policies - Government of Manitoba

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