Bill C-37 First Nations Clean Water Act

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C-37 An Act Respecting Water, Source Water, Drinking Water, Wastewater and Related Infrastructure on First Nations Lands

Short Title:  First Nations Clean Water Act

Bill Type:  House Government Bill

Bill Sponsor:  Minister of Indigenous Services

Status:  At 2nd Reading in the House of Commons. Introduced (1st Reading) — June 16, 2026. This Bill has not passed yet.

Estimated read time: 4 minutes

WHAT IS THIS BILL FOR?

Bill C-37 gives First Nations the legal authority to govern their own drinking water and wastewater systems on their lands. It sets minimum national standards for water quality and quantity, requires the Federal Government to fund water services at a level comparable to non-Indigenous communities and creates a pathway for First Nations to make and enforce their own water Laws. It also establishes a First Nations-led Water Commission and ties Canada to commitments made in a 2021 class action settlement over long-term drinking water advisories.

WHO GAINS POWER

  • First Nations governing bodies gain the legal authority to make and enforce their own water Laws on their lands — and can override Federal regulations where those Laws conflict
  • First Nations can delegate that authority to Provinces, Territories or non-profit bodies of their choosing
  • The First Nations Water Commission gains a formal role advising, monitoring and reporting on water services across First Nation lands
  • First Nations gain control over their own water data and information management systems

WHO LOSES POWER

  • Federal Government retains regulation-making authority, but the Minister must consult and cooperate with First Nation governing bodies before recommending regulations, and those recommendations must reflect co-development
  • Provinces and Territories have no authority over water services on First Nation lands unless a First Nation governing body invites them in through agreement
  • ⚠️ "Best efforts" language — The Bill repeatedly requires the Government to make "best efforts" to provide adequate funding, but does not define what adequate means or create an enforceable funding floor. A Government could argue it made best efforts while still underfunding services.

WHO GAINS MONEY

  • First Nations gain access to long-term, needs-based Federal funding for water infrastructure, operations, maintenance, monitoring and governance — including remoteness cost adjustments
  • First Nations are entitled to funding commitments set out in the 2021 Settlement Agreement (s. 9.02), which includes specific dollar amounts
  • The First Nations Water Commission receives sustainable Federal funding to operate

WHO LOSES MONEY

  • Federal Government is committed to funding water services at a level comparable to non-Indigenous communities — a significant and ongoing financial obligation
  • ⚠️ No funding floor defined — The Bill does not specify a dollar amount or formula. Funding levels are determined through a co-developed framework, but the Government retains final control over what it actually appropriates.

THE CATCH

  • ⚠️ "Best efforts" is not a guarantee — Most ongoing funding obligations use "best efforts" — but the Bill separately requires Canada to meet, at a minimum, the commitment expenditures in subsection 9.02(2) of the 2021 Settlement Agreement.
  • ⚠️ Governance accountability gap — A First Nations chief who is also a Member of Parliament has said publicly that many band councils are not meeting basic reporting and accountability standards right now. This Bill hands over control of water systems and significant funding to those same governing bodies — without first requiring them to prove they can manage it properly.
  • ⚠️ Comes into force one year after Royal Assent — There is a built-in one-year delay before any of this takes effect.
  • ⚠️ Protection zones depend on Regulation and Agreement — The Minister must define what a "protection zone" is by regulation, after consultation and cooperation and First Nation jurisdiction over adjacent water also requires an agreed approach with Canada and the Province or Territory. Until that regulation exists, First Nations cannot exercise jurisdiction over adjacent source water.
  • Federal Environmental Laws — including the Fisheries Act, Canadian Environmental Protection Act and Species at Risk Act remain in force — the Minister must consult and cooperate with First Nation governing bodies with a view to ensuring First Nation Laws protect the environment as much as or more than specified Federal Environmental Laws.
  • Immunity provisions protect First Nation employees and the Crown from liability — but only if the Government made "best efforts" to fund services adequately. If underfunding caused harm, liability questions become complicated.