Skip to Main Content

Municipal Affairs and Provincial Planning

print small medium large 


Viable Municipalities for P.E.I.

Municipalities play an important role in providing local services across PEI.  Municipalities are facing increasingly complex responsibilities and expectations from their residents and from provincial and federal governments.  In many areas, there is limited capacity to meet expectations.  Services are being provided at different levels, standards and costs across PEI and are used by municipal residents and non-residents alike. 

All communities are facing challenges such as population shifts, infrastructure demands, environmental concerns and climate change impacts. 

There are opportunities for communities to work together to create stronger municipalities to address challenges and build capacity to respond. 

The Department of Communities, Land and Environment is committed to promoting and encouraging strong and sustainable municipalities by:

  • developing modern municipal legislation;
  • establishing a funding arrangement that is stable and predictable; and
  • supporting municipal restructuring efforts.

Stronger municipalities will mean:

  • more community engagement and a local voice;
  • realizing efficiencies for service delivery through economies of scale;
  • recruiting and retaining skilled staff;
  • attracting more businesses and local development;
  • strengthening of rural towns and regions;
  • more effective investment of tax dollars in infrastructure;
  • opportunities for cost savings by reducing duplication and sharing resources to reduce operational costs;
  • more collaboration on local initiatives; and
  • recognition of local identity and heritage.

Strengthened local capacity will ensure that residents receive quality local services.  A collaborative approach will help to increase the sustainability of the municipal governance system.  Please contact Municipal Affairs with any questions you might have about enhancing municipal capacity.


Restructuring processes are governed by the Municipalities Act.  There are three types of restructuring processes and the requirements for each process are different:

  1. Incorporation: creation of a new municipality (Creating a New Municipality)
  2. Amalgamation: joining of two or more municipalities (Amalgamation and Status Change Processes)
  3. Annexation:  expanding municipal boundaries to an unincorporated area (Submission Requirements for Annexations)



Criteria have been established to guide municipal restructuring processes.  The Criteria clarify the thresholds important for ensuring municipal capacity.  They include:

  • 4,000 people (allowable variance may be considered for linguistic communities);
  • $200,000,000 total assessment of real property;
  • a municipal office that is accessible to the public;
  • established infrastructure, economic and institutional activity in the proposed municipality;
  • a range of services being offered to the residents; and
  • boundaries that do not purposefully leave out existing service centres or that do not negatively impact an existing municipality in their own efforts to grow and/or provide services.

The Viability Criteria will be used to guide provincial review of municipal restructuring proposals.  Municipalities considering restructuring will be asked to submit a completed Municipal Restructuring Information Form to Municipal Affairs to describe the proposed municipality.

  • Municipal Restructuring Information Form (under development)


Funding for Municipal Growth Management Studies is being offered to support ongoing municipal efforts to address and build municipal capacity.  A Growth Management Study can help a municipality to determine the appropriate size and scope for restructuring initiatives.  Approved applications are eligible for funds to contract professional services to complete a Growth Management Study. 

Please contact Municipal Affairs if you would like to know more about funding for Municipal Growth Management Studies.

Municipal Affairs Contact:
Aubin-Arsenault Building
3 Brighton Road
Charlottetown, PE C1A 7N8
Tel: (902) 620-3558
Fax: (902) 569-7545
back to top