funding for Water Conservation

The Water Conservation Municipal Project - Capital (FCM-WCMP-Capital) aims to help Canadian cities and communities promote water conservation. The FCM-WCMP-Capital does this through funding capital projects for retrofit initiatives that reduce the potable water use of a municipal building by 40%.

Funding Overview

This funding is for retrofit initiatives only. Your initiative must reduce potable water use by at least 40% in a municipal building. The purchase, installation, replacement or repair of water mains as a stand-alone initiative will not be funded. They will only be funded if those activities are part of a broader, more innovative initiative.

Regular loans and grants: Receive a low-interest loan of up to $5 million and a grant worth up to 15% of the loan to cover up to 80% of your eligible costs.

High-ranking project loans and grants: These qualify for a low-interest loan of up to $10 million and a grant worth up to 15% of the loan to cover up to 80% of your eligible costs.

Eligibility Requirements

  • Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards)
  • Municipal partners, which include:
    • private sector entities
    • Indigenous communities
    • municipally owned corporations
    • regional, provincial or territorial organizations delivering municipal services
    • non-governmental organizations
    • municipal partners, which include:
    • not-for-profit organizations
    • research institutes (e.g., universities)

Eligible Activities

FCM funds capital projects that demonstrate most of the following characteristics:

Transformative potential: The project incorporates solutions (e.g., knowledge, practices, technologies) that are well beyond business-as-usual. The project:
  • is likely to result in significant performance improvements (e.g., improved levels of service, cost savings, energy efficiency, increased resiliency, environmental protection, improved human health)
  • is audacious in that it requires a municipality to take on uncertainty over known best practices to achieve greater environmental benefits
  • is designed to build the capacity of key stakeholders (e.g., municipal staff, elected officials, local trades)
  • has the potential to generate new knowledge for the sector
  • has a high likelihood of being replicated if successful

Significant impacts: The project has the potential to generate significant measurable environmental results as well as economic and social benefits.
Strong implementation framework: The project plan is robust and includes appropriate stakeholder engagement, planning, risk management, resourcing and monitoring.

Eligible Costs

  • Consulting costs to write the GMF application incurred up to 90 days prior to application receipt date
  • Administrative costs that are directly linked to and have been incurred for the project, such as:
    • communication costs (e.g. long-distance calls or faxes)
    • permits or certifications required for the project
    • printing or photocopying by outside suppliers
    • acquisition of documents used exclusively for the project
    • document translation
  • Advertising costs essential to communicating the project to the public, as well as project evaluation, such as:
    • fees for advertising development
    • fees for media distribution
    • website development
    • public surveys
  • The cost of a financial audit for the capital project if required by FCM.
  • Capital costs as defined and determined in accordance with generally accepted accounting principles (GAAP), including:
    • costs for acquiring, developing, constructing, modernizing or leasing systems (equipment, hardware, software, etc.).
  • Costs of construction, renovation or modernization of facilities and structures such as materials and installation costs. 
  • Rental of tools and equipment. 
  • Costs related to meetings and public gatherings that communicate the project to the public and that collect feedback, such as:
    • facility rental
    • audiovisual equipment rental
  • Fees for professional or technical consultants and contractors.


Applications can be sent in year-round.

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