A stronger Canadian economy begins with robust, empowered rural communities. The potential to drive true growth and innovation is there, but only if the right policies and investments are put in place.

Our new report, The future of Rural Canada, lays out a visionary but practical path forward for rural communities.

The challenge

Rural governments face unique challenges in strengthening infrastructure due to scale, geography, climate and demographics, necessitating predictable investments in local roads, bridges and inter-city transportation. With small tax bases but generally large geographic areas of responsibility, rural communities represent 15% of the Canadian population but are responsible for 36% of the infrastructure.

These rural areas are key to building and growing our national prosperity due to their abundant natural resources, innovative spirit and untapped potential.

With modern infrastructure, reliable connectivity and updated fiscal tools, rural communities are ready to drive growth in key sectors and expand Canada's global trade. To unlock their potential, all orders of government must work in partnership. When rural communities thrive, all of Canada benefits.

What we can achieve together

  • Improved infrastructure: Rural municipalities handle significant infrastructure responsibilities despite having a smaller share of tax revenue. Good infrastructure is vital for industries like agriculture, oil and gas, and mining.
  • Enhanced safety and connectivity: Many rural areas don’t have enough police resources, and vacancies strain the system. Plus, better internet and cell service are needed to unlock economic opportunities—accessing emergency services can be a real, and sometimes life-threatening, challenge.
  • Better housing options: Housing needs vary across rural areas, with communities working hard to add more options and address homelessness. Solutions include building new homes and using prefabricated housing for faster development.

A strong Rural Canada is where families can thrive, seniors can retire with dignity, and new residents can find affordable housing and high-quality services. It’s where communities will continue to feed and power the world, with growing local businesses and protected natural environments.

Related focus areas
Explore the topics we’re working on related to rural Canada.

Broadband

Broadband Internet access is essential in the modern age, yet too many rural Canadians live without it. We’re helping to bring reliable high-speed Internet to every community across Canada.

Climate and sustainability

Scaling up local green innovation is the key to tackling climate change. We help communities become more sustainable and better prepared for extreme weather.

Infrastructure

Local governments own approximately 60 percent of the public infrastructure that supports our economy and quality of life. Through advocacy and support, we help them build a stronger Canada.

Housing

Housing is the bedrock of livable and prosperous communities. We advocate for action on social and affordable housing so all Canadians have a decent place to call home.

Homelessness

Canada’s homelessness crisis is reaching a breaking point, and municipalities are on the front lines of it. We advocate for tangible, permanent solutions so local governments can tackle this unprecedented issue with a full suite of appropriate measures.

Public safety

Municipalities help keep Canadians safe and secure. We work to ensure that they have the right tools to protect Canadians from crime, health risks and emergencies.
© 2026 Federation of Canadian Municipalities