Larry Kotsoff, vice-president of real estate development with Solowave Investments, Stephen Litt, chief development officer at Vive Development, and Joseph Puopolo, chief executive officer of Polocorp Inc., members of Build Urban, posed for a photo on Jan. 14, 2026. (Jeff Pickel/CTV News)CTV’s Jeff Pickel speaks to developers who are facing potential financial fallout due to Waterloo Region’s water capacity worries.Worries about Waterloo Region’s water supply could be prompting some investors to consider spending their money elsewhere.
In December, the region announced there were water capacity issues in the Mannheim Service area, which provides water to parts of Kitchener, Waterloo, Woolwich Township and Wilmot Township. At the time, the region said there were no concerns for current residents in terms of their taps running dry. But business owners in the area say they are worried they may be left high-and-dry with investments flowing elsewhere.
Earlier this month, the region recommended putting some developments on pause until a secure water supply could be shored up.
As permits dry up, developers who are usually in competition with each other joined forces. Build Urban, a coalition of 17 developers in Waterloo Region, is calling for the creation of an Industry Water Capacity Task Force. The task force would focus on finding near-term and long-term solutions and communicate with developers and builders.
“The development community needs consistent, clear information,” Stephen Litt, chief development officer at Vive Development, said. “We need a line in the sand.”
“Pain has already been created by the creation of uncertainty by putting a freeze even on the planning process,” Joseph Puopolo, co-chief executive officer of Polocorp Inc., said.
The developers said they are facing concerns from investors and questions from banks.
“Joseph and I, we both shared a similar experience,” Litt said. “We had big bank lenders, some of the big ones call, and usually we’re calling them asking for money for projects and land and such – they called saying, ‘Is this a real thing to you?’”
The pair said some of the projects they had been planning for Waterloo Region are now mired in uncertainty.
One of those projects is at the former Kraus Factory land in north Waterloo. Twelve towers featuring more than 3,000 units had been planned for the property. Now, its unclear when those towers will be built.
The developers also raised concerns about the water required for the newest hospital being built in Waterloo Region.
“You need water for everything,” Litt said.
“Industry, housing, institutions, hospitals,” he listed. “The water solution is key to all of it.”
Although Litt and Puopolo said they believe the region is working to tackle the issue, they are concerned the wheels of municipal government may not turn fast enough.
“I do think they’re taking it seriously, but I think we need to move at a pace that government is typically uncomfortable with,” Puopolo said.
Chambers of commerce concerns
Local business owners are also worried about what comes next.
The presidents of the Greater Kitchener Waterloo Chamber of Commerce and Cambridge Chamber of Commerce penned a joint letter to Waterloo Region Chair Karen Redman and regional council members.
They said they have been fielding a “multitude of concerns” from members. The letter went on to say negative economic impacts could potentially be felt in many sectors, including housing, construction, trades, retail and education.
“Time is not on our side, no matter how we got into this grave situation,” the letter read. “This is not the time for pointing fingers. This is a time for transparency, communication and relying on the most knowledgeable technical experts we can source,” the letter said, in part.
The letter also called on regional council to lift the pause on developments.