SubsidyOntarioProperty Development

Industrial Water Rate Program

The Industrial Water Rate Program offers a discounted water rate to manufacturers in Toronto to help support economic growth and encourage water conservation (also called the Block 2 water rate).

Offered by Toronto Water Business Support

Amount

Rate reduction of 30 per cent on water use over the first 5,000 m3 (2026: Industrial Water Rate (Block 2 Rate) $3.3219 per m3 vs General Water Rate (Block 1 Rate) $4.8629 per m3)

Quick eligibility check

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
No requirement stated
Location
Ontario

Who can apply

The Program is open to manufacturers that:

  1. Use more than 5,000 cubic metres annually (m3/yr)
  2. Fall within the industrial property tax class
  3. Are in full compliance with the City’s Sewers By-law
  4. Submit a comprehensive water conservation plan to the satisfaction of the General Manager, Toronto Water.

Company is “Mixed” Industrial and Commercial

To be eligible for the program, a separate meter must be used to measure the industrial flow.

Compliance with the City’s Sewers By-law

A Notice of Violation (NOV) under the Sewers By-law (i.e. parameters exceeding the By-law) can impact eligibility to receive the discounted water rate.

If you receive one NOV in a calendar year

The City’s Environmental Monitoring & Protection Unit will meet with you to ensure you have responded to the NOV and rectified the non-compliance issue.

If you receive two NOVs in a calendar year

  1. The City’s Environmental Monitoring & Protection Unit will meet with you a second time to discuss what actions have been taken to achieve compliance and what can be done to further comply with the City’s Sewers By-law.
  2. If your company continues to demonstrate non-compliance, it will lose the discounted water rate from the date of the second NOV.
  3. Eligibility to receive the discounted water rate can be re-established when the City determines compliance has been achieved. For sanitary and storm sewer discharges, the City re-samples and the sample results demonstrate compliance. The City may consider a compliance plan agreement in certain circumstances.

If you receive three NOVs within one year

  1. Your company will lose the discounted water rate from the date of the third NOV.
  2. Eligibility can only be re-established after the company maintains compliance for one full year (12 consecutive months).

Reasons a company can be automatically removed from the program until compliance is demonstrated

  1. Failing to provide a spill report within five days
  2. Failing to submit a Pollution Prevention (P2) Plan, related updates or a revised plan

About the funding

Your business will receive the Industrial Water Rate effective the date that you submitted the water conservation plan.

Customers are charged the general water rate on the first 5,000 m3 of water use. Water use over that amount is eligible for a rate reduction of 30 per cent.

In 2026, the difference in water rate is as follows:

  1. General Water Rate (Block 1 Rate): $4.8629 per m3
  2. Industrial Water Rate (Block 2 Rate): $3.3219 per m3