Plans to transform Calgary's water utility into a municipally owned corporation have been placed on hold pending the outcome of a provincially mandated inspection, Mayor Jeromy Farkas announced on Friday.
Speaking after Enmax's annual general meeting, Farkas stated that a significant portion of the city's water-related activities are suspended due to provincial oversight. While the replacement pipeline for the Bearspaw South feeder main is proceeding quickly, longer-term governance improvements are paused until the inspection wraps up.
"When it comes to ministerial orders, we're bound to what the minister orders us to do," Farkas said. "If that's opposite of the recommendations of the report, we still have to follow what the minister orders us to do."
The provincial inspection, announced in March after a second failure of the feeder main in January 2026, is being led by inspector David Goldie. It will examine the administration and management of Calgary's water utility under the Municipal Government Act. Goldie has the authority to review documents, interview officials, and compel witness testimony under oath. Municipal Affairs Minister Dan Williams indicated the investigation should conclude by the end of 2026.
In March, an independent panel led by retired ATCO executive Siegfried Kiefer recommended creating an arms-length corporation, similar to Enmax or Edmonton's Epcor, to manage the water system. Shortly after, city council approved a 27-point plan to implement the panel's recommendations, focusing on stabilizing the water system, establishing new leadership and governance structures, and developing stronger regulatory and risk mitigation frameworks.
Farkas had previously suggested expanding Enmax's scope to include water utility management. However, he now emphasizes that the city must comply with any provincial orders, even if they contradict the independent panel's recommendations. The pause reflects the uncertainty until the province's findings are released.
