CanadaCan a municipality charge developers fees to fund schools and infrastructure?
Yes, municipalities in Canada can charge developers fees for infrastructure, but not directly for schools — only provincial governments may impose education-related development charges, as confirmed by the Supreme Court of Canada.
What the Law Says
The Canadian Constitution divides responsibility for education and municipal powers between levels of government. Municipalities have authority to collect development charges for local infrastructure, but education funding falls exclusively under provincial jurisdiction.
Under the Constitution Act, 1867, section 93 gives provinces exclusive authority over education — including the power to fund schools. Municipalities, created by provincial statutes, have only those powers delegated to them by the province.
While provinces may authorize municipalities to collect infrastructure-related development charges (e.g., for roads, water, sewers), they cannot delegate authority to levy charges specifically for education — that would infringe on provincial constitutional jurisdiction.
Statutory TextIn each Province the Legislature may exclusively make Laws in relation to Education.
— Constitution Act, 1867, s. 93 — Education
What Courts Have Said
The Supreme Court of Canada ruled definitively that school boards and municipalities cannot impose development charges tied to education without provincial legislation — and even then, such charges must respect constitutional boundaries.
The Court held that a school board’s attempt to condition approval of residential developments on the provision of school facilities or payments violated s. 93 of the Constitution Act, 1867, because education funding is a provincial, not local, responsibility.
What to Do
Confirm whether your province has enacted legislation authorizing infrastructure development charges — e.g., Ontario’s Development Charges Act.
Do not rely on municipal bylaws alone to impose education-related fees — such charges require explicit provincial enabling law and must comply with constitutional limits.
Consult provincial education and municipal affairs ministries to verify current authority and approved fee structures.
If challenging a proposed education levy, cite s. 93 of the Constitution Act, 1867 and the 1996 SCC decision.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.