By: Sue Colley
On August 12, 2025, Council approved the purchase of two modular child care centres—each with space for 88 children—to be built on Waterloo Region District School Board lands in priority neighbourhoods.
With over 13,400 children on the waitlist—including 8,700 families needing care right now—the move is one of the most ambitious child care infrastructure projects in Ontario.
Innovation in Action
Finding affordable, accessible sites has been a major roadblock for not-for-profit operators. High rents in traditional buildings often force cutbacks in wages and program quality. Waterloo’s solution: modular construction—prefabricated buildings that can be installed in 6–9 months, cost less than conventional builds, and last about 30 years. They can even be relocated if community needs change.
Smart Financing
The Region will invest up to $4.4 million through debentures, fully recovered via long-term, low-cost leases with operators. This ensures predictable occupancy costs and no extra burden on the Region’s budget. Each site will also receive about $1.6 million in start-up support from CWELCC and federal infrastructure funding—covering everything from site prep and utility hook-ups to playgrounds, toys, and classroom set-up.
Schools as Community Hubs
Placing the centres on school board property means families can benefit from seamless education and care in one location. WRDSB is offering affordable, long-term leases, ensuring sites are large enough, well-located, and zoning-friendly. Families will also be consulted on design and programming.
Equity at the Core
One site will prioritize operators led by Indigenous or ethno-cultural organizations, aligning with the Region’s commitment to equitable access for children from low-income, special needs, Indigenous, and diverse backgrounds.
A Provincial Model in the Making
This pilot tackles a key flaw in the CWELCC funding model: there is very little capital funding available for building new child care centres – modular or otherwise. By absorbing the capital costs, the Region frees operators to invest in wages, staffing, and program quality—helping address Ontario’s child care staffing crisis.
As Lori Prospero of RisingOaks Early Learning Ontario noted:
“The Region’s modular strategy means centres could open by 2026, while traditional builds might not be ready until 2028.”
Next Steps
– RFP for builders: Launched July 30, closing September 3, 2025.
– Operator applications: Underway now.
– Opening target: Both centres licensed by December 31, 2026—in time to meet provincial CWELCC growth targets.
Why it matters: This initiative delivers 176 urgently needed spaces in the neighbourhoods that need them most, offers operators financial stability, and shows that municipalities can think outside the box (or build it) to deliver faster, more affordable child care.
As one Council delegate put it:
“Every year we say every child matters—this is how we show it.”