Merging Municipalities

A merger is the restructuring of the whole or any part of a municipality with another municipality. Mergers result in the incorporation of a new municipality:

• Two or more like municipalities (rural-to-rural or urban-to-urban) may merge to form one new municipality. Section 53(1)(b) of The Municipalities Act provides the authority for municipalities to apply for this type of merger.
• A municipal district is formed when at least one rural municipality and at least one urban municipality merge together. Section 51.1 of The Municipalities Act provides the authority for municipalities to apply for this type of merger. Please see the Guide to Establishing a Municipal District for detailed information specific to municipal districts.

Although municipal councils may initiate a merger, section 54 of The Municipalities Act also permits voters of a municipality to petition for a referendum to be held on whether the municipal council should apply for a merger.   

Because a merger affects the structure of a municipality, all involved municipalities must agree to the restructuring. Municipalities considering a merger are encouraged to negotiate a voluntary restructuring agreement, which will address such matters as:

• structure and name of the new municipality;
• location of the municipal office;
• assets and liabilities;
• integration of administration and other staff;
• consolidation of financial and physical operations;
• electoral structure; and
• the establishment of different service areas.