First Nations Clean Water Act

Summary#

Bill C-37 (First Nations Clean Water Act) sets national rules for water, source water, drinking water, wastewater, and related systems on First Nation lands. It affirms that First Nations have the right to make and enforce their own water laws. It sets minimum standards for safe drinking water, water quantity, and wastewater. The broad goal is to ensure reliable access to clean water and proper wastewater treatment, and to close long‑standing gaps.

Key changes:

• Affirms First Nations’ jurisdiction to make, administer, and enforce water and wastewater laws on their lands, and in agreed “protection zones” next to their lands.
• Sets minimum standards: drinking water must meet at least federal guidelines or provincial/territorial standards (First Nation chooses); wastewater effluent must meet at least federal or provincial/territorial standards; water quantity must meet community needs (including fire protection).
• Requires the federal minister to co-develop a needs‑based funding framework with First Nations and to make “best efforts” to fund services comparable to non‑Indigenous communities.
• Creates paths for source water protection through agreements among First Nations, Canada, and provinces/territories; requires the minister to define “protection zones.”
• Lets First Nation laws prevail over most other federal laws in case of conflict (with listed exceptions, such as major federal environmental laws); First Nation laws can also exclude federal water regulations from applying on their lands.
• Starts work to create a First Nations‑led Water Commission to support monitoring, advice, and coordination; requires annual and five‑year public reporting.
• Provides liability protections (immunity) for First Nations employees acting in good faith and sets conditions on government liability tied to “best efforts” funding.

What it means for you#

• First Nations governing bodies

  • Can pass, administer, and enforce their own water and wastewater laws on First Nation lands. Must publish these laws (website and First Nations Gazette).
  • May extend their water jurisdiction to adjacent “protection zones” if the First Nation, Canada, and the province/territory agree on how laws will work together.
  • Can choose whether minimum drinking water and wastewater standards follow federal benchmarks or the province/territory’s standards. If no choice is made, the minister must work with the First Nation to apply whichever is higher.
  • Can exclude federal water regulations from applying on their lands if their own law covers the area (minimum standards still apply).
  • Can enter agreements with Canada and with provincial/territorial/municipal governments on funding, administration, enforcement, services, and source water protection. Delegation to other governments or public/not‑for‑profit bodies is allowed if they consent.
  • Will co‑develop a funding framework with the minister that considers capital, operations and maintenance, monitoring, enforcement, reporting, legal and remoteness costs, governance, capacity, insurance, and comparable standards.
  • Receive support to access insurance information about risks and premiums for water systems.
  • The Canadian Charter of Rights and Freedoms applies when exercising this jurisdiction.

• Residents, occupants, and users of buildings on First Nation lands

  • Drinking water (from public or private systems on First Nation lands) must meet at least the chosen minimum quality standard. Wastewater must meet at least the chosen minimum effluent standard.
  • Water quantity must be sufficient for drinking, cooking, hygiene, sanitation, safety, fire protection, emergencies, and cultural/spiritual needs, based on current and future use.
  • The minister must make “best efforts,” in cooperation with each First Nation, to ensure access to clean and safe drinking water on First Nation lands.

• Water system operators and staff on First Nation lands

  • May face new requirements through First Nation laws or federal regulations for training and certification, asset management, monitoring, reporting, occupational health and safety, emergency planning, permits, and insurance.
  • Could face penalties for non‑compliance under First Nation laws or federal regulations.

• Provinces, territories, and municipalities

  • Can enter agreements with Canada and First Nations on source water protection, services, and enforcement. If an agreement between Canada and a province/territory/municipality could affect a First Nation, that First Nation must be a party or be consulted.
  • Provincial/territorial standards may apply on First Nation lands if chosen by the First Nation, or if they are higher when no choice is made.

• Businesses and organizations on First Nation lands

  • Private water systems on First Nation lands must meet the same minimum standards as public systems and may be subject to permits, monitoring, and enforcement under First Nation laws or federal regulations.

• Timing

  • The Act starts one year after it receives Royal Assent. Some consultations and co‑development steps have specific timelines after that.

Expenses#

No publicly available information on total cost.

• The Government of Canada must make “best efforts” to provide needs‑based funding so First Nations receive services comparable to non‑Indigenous communities; exact amounts are not stated.
• Canada must meet funding commitments tied to the 2021 settlement on long‑term drinking water advisories at least at the “commitment expenditures” level named in that agreement.
• Ongoing costs are likely for: co‑developing and running the funding framework; creating and enforcing standards and regulations; consultations; reporting; and supporting agreements on source water and services.
• The minister must make best efforts to provide sustainable funding for a First Nations‑led Water Commission; amounts are not stated.
• First Nations governments, operators, and private system owners may face compliance costs (training, monitoring, asset management, insurance). The Act envisions federal funding intended to be adequate, stable, and needs‑based, but does not fix dollar amounts.

Proponents' View#

• The bill appears intended to close long‑standing gaps by setting clear minimum standards for safe drinking water, adequate water quantity, and proper wastewater treatment on First Nation lands.
• It affirms First Nations’ self‑government over water, allowing nations to write and enforce their own laws and to coordinate protection of source water beyond reserve boundaries.
• Co‑developing a needs‑based funding framework could improve predictability and adequacy of funding, including for higher costs in remote communities and for system operations and maintenance.
• Aligning decisions with the United Nations Declaration on the Rights of Indigenous Peoples, and requiring transparency and reporting, could improve accountability and trust.
• A First Nations‑led Water Commission could help with technical support, monitoring, legal advice, and sharing best practices across communities.

Opponents' View#

• One concern is that many duties use “best efforts,” which may not guarantee specific funding levels or timelines for upgrades and operations.
• The bill relies on future First Nation laws, agreements, and federal regulations to set many details (training, enforcement, permits, penalties, insurance). Until those are in place, practical impacts are uncertain.
• Liability protections (immunity) for good‑faith actions and conditions on government liability may limit legal options for people harmed by failures in water services.
• Allowing First Nations to choose between federal or provincial/territorial standards, and to vary standards by location, could lead to uneven rules across the country. The minister’s role in picking the “highest” standard if no choice is made may also raise questions about consistency and process.
• Using “protection zones” depends on agreements with provinces/territories and Canada. If agreements are hard to reach, source water outside First Nation lands may remain at risk.
• The Act starts one year after Royal Assent, and key frameworks and regulations have later deadlines. This could delay on‑the‑ground changes.