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).

The Program is open to manufacturers that:

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

Step 1: Let us know you are interested in the Program

Step 2: Eligibility assessment

The City will confirm that you meet the eligibility requirements listed above. Companies classified as “mixed” industrial and commercial may still be eligible. See more below.

Step 3: Submit documents

If your company meets the eligibility requirements, you must prepare and submit a water conservation plan for approval. Need help building your plan? Customers consuming up to 15,000 m3 / yr are eligible for the CBB Program free water audit which could be used as a water conservation plan. Customers can also contact Partners in Project Green.

Documentation receipt is confirmed within 48 hours of submission.

Step 4: Enjoy the savings of a reduced water rate

Should the plan be approved:

  • Your business will receive the Industrial Water Rate effective the date that you submitted the water conservation plan.
  • After the initial application, in order to continue to receive the discounted rate, you must submit an annual water conservation progress report by July 1 of each calendar year and continue to meet the other eligibility criteria.

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

In 2023, the difference in water rate is as follows:

  • General Water Rate (Block 1 Rate): $4.3863 per m3
  • Industrial Water Rate (Block 2 Rate): $3.0703 per m3
General Customer Industrial Water Rate Customer
100,000m3 x $4.3863/m3 5,000m3 x $4.3863/m3
+95,000m3 x $3.0703/m3
= $438,630 = $313,610


This would result in a savings of $125,020.

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

If you already have a meter that isolates the industrial flow

  • Advise Toronto Water of all meter numbers and identify which meter(s) isolate(s) industrial flow.
  • Toronto Water will arrange a site visit to confirm which City meter isolates the industrial flow.
  • Once confirmed, you can apply for the Program, provided you meet the other eligibility requirements.

If your facility does not have an existing City meter that isolates industrial flow

  • You will need to purchase a new meter.
  • Once the meter is installed, the City will conduct a site visit to verify the industrial flow is isolated.
  • Once confirmed, you can apply for the Program, provided you meet the other eligibility requirements.

If you feel that sub-metering is not feasible for your facility

  • Please submit a technical document that demonstrates why it is not feasible, along with your water conversation plan.

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

If you receive one NOV in a calendar year

You may be eligible if you have responded to the NOV and rectified the non-compliance issue.

If you receive two NOVs in a calendar year

  • The City’s Environmental Monitoring & Protection Unit will meet with you 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.
  • If your company continues to demonstrate non-compliance, it will lose the discounted water rate from the date of the second NOV.
  • 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

  • Your company will lose the discounted water rate from the date of the third NOV.
  • 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