How Local Government Works in Canada

If you’re asking how local government works in Canada, this guide explains the essentials in plain language and with 2025 updates. Municipal governments are the level of government closest to people — they deliver front-line services like roads, waste collection, libraries, local planning and emergency services. But municipalities are created by, and derive their legal powers from, the provinces and territories, so rules and powers vary across jurisdictions. Below you’ll find how municipal authority is structured, what cities and towns typically do, how they pay for services, the main governance models, and practical steps residents can take to engage and get things done.

Where municipal power comes from (short answer)

Municipal governments are creatures of the province: provinces (and territories) create municipalities and set their statutory powers, duties and structures under provincial municipal acts or territorial statutes. That means cities do important day-to-day work, but the legal source of their authority is provincial law. (Legislative Assembly of Ontario)

What municipalities typically do

Local governments run services that affect daily life. Typical responsibilities include:

Road maintenance, sidewalks, street lighting and local transit.
Water, sewage and waste management.
Fire protection and local policing oversight (where applicable).
Zoning, land-use planning and building permits.
Parks, recreation, libraries and community programming.
Local housing and homelessness initiatives in partnership with provinces and the federal government.

Specific services vary by municipality and province, but the practical reality is that most citizens interact with municipal services more often than with other orders of government. (Clarington)

How municipalities pay for services

Municipalities fund operations and capital projects from several sources:

Property taxes are the single largest local revenue source for most municipalities; they fund day-to-day services and local capital renewal. Municipal tax notices explain how your bill is allocated. (Government of British Columbia)
User fees (transit fares, recreation fees, development charges).
Provincial transfers and grants (program-specific or formula-based).
Federal transfers and infrastructure funds (in recent years the federal government and partners have announced large infrastructure and housing-enabling streams that municipalities access through provincial/territorial agreements). (Canadian Union of Public Employees)

Because municipal revenue tools are more limited than those of provinces and the federal government, funding pressures are a frequent topic in municipal advocacy and budgeting debates.

Governance models: who runs the city?

Cities generally operate under one of a few governance models:

Mayor–council (most common): Voters elect councillors and a mayor; council sets policy and approves budgets. How much independent power a mayor has depends on provincial rules and local practice. (The Canadian Encyclopedia)
Strong-mayor vs weak-mayor: Some provinces have introduced or allowed “strong mayor” powers in particular cities (for example, Ontario’s strong-mayor provisions in recent years give additional executive tools to the mayor in qualifying cities). Elsewhere, mayors are “first among equals” where council collectively makes most decisions. (Ontario)
Council–manager (less common in Canada): Council hires a professional city manager or CAO (chief administrative officer) to run day-to-day administration while council focuses on policy; many municipalities use a professional CAO model even within mayor–council frameworks. City staff (including the Clerk, Finance Director and CAO) administer bylaws and deliver programs. See your city’s governance pages for local specifics. (City of Toronto)

Planning, bylaws and land-use decisions

Municipalities have major authority over zoning, development approvals and local planning — those decisions shape neighbourhoods, growth and housing supply. Developers apply for permits and official-plan amendments to proceed; council and planning committees review projects against local plans and provincial policies. This land-use control is one of the most visible ways local governments affect daily life and long-term local economies. (Clarington)

Intergovernmental relations — municipalities, provinces and the feds

Because municipalities depend on provincial statutes and transfers, they work closely with provincial governments. At the national level, the Federation of Canadian Municipalities (FCM) advocates for municipal priorities (housing, infrastructure funding, climate resilience) and helps local governments secure federal investments and policy changes. Recent federal-provincial-municipal funding streams (including housing and infrastructure envelopes announced in 2024–25) show how municipalities partner with higher orders of government to finance big projects. (Federation of Canadian Municipalities)

Fiscal pressures, capital needs and why local infrastructure matters

Many municipalities face aging infrastructure and rising costs for water, roads and transit. Because property-tax bases and user fees have limits, cities lobby provinces and the federal government for long-term, predictable funding tools and access to financing for big capital projects (transit, sewer upgrades, climate resilience). Municipalities and advocates point to multi-year federal streams and provincial partnerships as critical to closing infrastructure gaps. (Canadian Union of Public Employees)

How citizens can engage and get things done

You don’t need to be an expert to influence local government. Practical steps:

Find your councillor and Mayor’s contact details on your city’s website and attend a council meeting (many are livestreamed). (City of Toronto)
Use deputations and public delegations: most councils allow residents to present at hearings or committee meetings on planning files or budget issues.
Watch local planning notices and public consultations (development proposals, budget consultations, transit plans).
File a service request for local problems (potholes, broken signals) through your municipality’s online portal.
Vote in municipal elections and stay informed about local candidates’ platforms — municipal votes decide who sets local priorities and tax levels.

Where to find reliable, up-to-date information

Your municipal website (city hall pages) for bylaws, council agendas, budgets and service portals. (City of Toronto)
Provincial municipal associations (e.g., AMO in Ontario) and provincial municipal acts for legal frameworks. (AMO)
Federation of Canadian Municipalities (FCM) for national policy, federal funding programs and municipal advocacy. (Federation of Canadian Municipalities)

Final takeaway

Understanding how local government works in Canada means knowing two simple facts: municipalities run the services you use every day, and their legal powers come from provincial law. Because provinces set the rules and municipalities must balance limited local revenues with rising service and capital needs, local governments increasingly work in partnership with provincial and federal governments — and with citizens — to deliver and pay for services. If you want practical next steps, visit your city’s website, find your councillor, and attend the next council meeting — local change often starts with one informed, persistent resident. (Legislative Assembly of Ontario)

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