Connecting Water Res -...

ANNUAL REPORT 2002|2003

Connecting Water Resources…Bringing Research to Life!

Water is a precious resource and clean, safe water is a fundamental

determinant of health and quality of life. The effective management and

stewardship of this vital resource requires the integration of a wide

variety of concerns, interests and expertise.

The Canadian Water Network is all about bringing together considerable

and varied expertise in water issues across Canada, to fundamentally

improve our ability to manage and protect both human and

environmental health.

OUR MISSION: To ensure Canada’s leadership role in themanagement and sustainable use of water resources, in theprotection of human and aquatic ecosystem health and insustaining economic growth in the water technology and

services sector.

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What the CWN does

The Canadian Water Network-Réseau canadien de l’eau(CWN-Rce) is a consortium of university researchers andindustry and government partners who share a vision ofproviding Canadians with the cleanest, safest water possible.

The Network develops and supports diverse,multidisciplinary projects that address the

critical water issues facing our nation. Theprogram is national in scope, void of politicalagenda and emphasizes the importance ofaddressing the socio-economic aspects of watermanagement in conjunction with a scientificapproach. The Canadian Water Network (CWN) isfounded on the existing research expertise acrossCanada, in the various water-related study areas,and functions to unite these world-renownedresearchers with representatives from privateindustry, government and public sectororganizations. This network of participants servesto effectively address Canada’s water-relatedissues on a regional, national and global scale.

Leading researchers from various fields related to water, economics and health have beenbrought together to form multi-regional,multidisciplinary collaborations. In addition tothe financial support provided by the federalgovernment’s Networks of Centres of Excellence(NCE) program, the CWN receives funding and in-kind support from partners in private industry, academia, non-governmentalorganizations and various government andpublic agencies at the municipal, provincial and federal level.

Important products of network activities include:

◗ innovative clean water technologies that will be marketed worldwide by our industrial partners;

◗ a comprehensive and integrated understanding of water resources, water allocations and water supply systems;

◗ enhanced detection techniques for water-borne pathogens, disinfection byproducts and environmental contaminants;

◗ the development of technological advances in the management of water resources, water supply issues and wastewater treatment; and

◗ highly qualified personnel with interdisciplinary training in water resources and technology development.

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Letter From Bill Borland, Chair of the Board

The Canadian Water Network (CWN) hascompleted a most productive second year of

operation, marked by important researchaccomplishments, a very successful NationalSymposium and significant strengthening instaffing and leadership. A truly bright future liesahead. The CWN will continue to fulfil its mandateas a Network of Centres of Excellence. As Chair of itsBoard of Directors, I am pleased to present theNetwork’s 2002/2003 Annual Report.

The world welcomed 2003 as the United NationsInternational Year of Freshwater. Issues raisedduring the year, along with the UN’s global watervision of thinking globally and acting locally, havehelped to strengthen our mandate.

In March 2003, the CWN held its inaugural NationalSymposium in Saint John, New Brunswick. TheSymposium program was full and the sessions werewell attended. Presentations on the Network’s 28research projects, in addition to presentations onindustrial, federal and provincial initiatives,highlighted the level of excellence in research thatthe CWN embodies.

As the Network looks to the future, it will continueto build on this momentum by conductinginnovative, leading-edge research and effectivelycommunicating how our achievements impactCanadians and the world. The first full review ofCWN research projects was completed in 2003. Theassessments were very favourable and providedimportant feedback.

The CWN proudly welcomed Dr. Mark Servos asScientific Director this past year. Dr. Servos wasformerly Project Chief with Environment Canada’sNational Water Research Institute, Aquatic

Ecosystem Protection Research Branch. Hisresearch concentrated on pharmaceuticals andrelated chemicals in water, an emphasis that willcontinue in his research at Waterloo. Dr. Servosreplaced Dr. R.W. Gillham, the Network’s firstScientific Director. The CWN also welcomed a newExecutive Director, Bernadette Conant, and a newCommunications Officer, Katarina Pintar. Inaddition, new faces were added to the Board ofDirectors and the Research ManagementCommittee, widening industry and governmentrepresentation within its governing bodies.

To develop new strategic direction, the CWN hasinitiated a challenge dialogue process which willincorporate input from primary stakeholders(including industry, government and NGOs). Theresult will be a strategic plan that addresses waterissues facing Canadians; stimulates researchexcellence and multi-regional collaboration;increases the potential for technology transfer; andenhances policy development and implementationin Canada.

Water issues continue to have a high priority in Canada. In the next year we will strive tomaintain excellence in research, while broadeningour scope and exploring new areas. We will fortifyour existing network while looking for new partnersto complete an expanded vision.

William BorlandChair, CWN Board of Directors

J.D. Irving Ltd. SAINT JOHN, NB

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Letter from

Dr. Mark R. Servos, Scientific Director

The creation of the Canadian Water Network(CWN) just two years ago came at a critical

time for Canadians. The challenges facing policymakers, managers and the water industry havenever been greater. In response to the Walkertontragedy, we are now faced with the very difficultchallenge of learning from the past and using ourknowledge to ensure future tragedies areavoided. Canadians are now acutely aware of theimportance of safe drinking water and they alsorecognize how complex and vulnerable oursystems can be. It will be a test of our societalvalues to maintain our vigilance and ensure allCanadians have access to clean, safe water.

Almost every jurisdiction in Canada has recentlyprepared a review and developed policy for theprotection and delivery of safe drinking water.Implementing these policies using sound scienceas a basis will be a challenge that we cannotafford to ignore, and one that the CWN canpositively impact. Clean water will not beachieved easily. Our attention and commitmentto developing innovative solutions will be rewarded through improved health, anenhanced environment and new economicopportunities. The CWN is a critical contributorto the development and application of newknowledge and innovation to address theseproblems, through partnerships with industry,governments and other stakeholders.

The first CWN Symposium, held in Saint John,New Brunswick this spring, was a huge success.As our first major event, the Symposium was aunique opportunity to link academia, industry

and government and open the lines ofcommunication. It was an opportunity to sharenew science and develop further networks andpartnerships. There was an overwhelming senseof optimism and support among the researchers,partners and many stakeholders who attended.The CWN clearly provides a much-needednational forum that includes a diverse group ofpeople with similar challenges, for addressingand managing water issues in Canada.

After only two short years as one of Canada’sNetworks of Centres of Excellence, the CWN isemerging as a leader in water protection andmanagement. There is no doubt that theNetwork’s influence will continue to develop inthe future, resulting in enormous benefits toCanadians. We can already see a significantimpact on water science, policy andopportunities. We have made an initial splashand the wave is moving across the country as wecontinue “connecting water resources” and“bringing research to life.”

Dr. Mark R. ServosScientific DirectorCanadian Water Network University of Waterloo, WATERLOO, ON

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Building the capacity to provide clean water.

As responsibilities for managing water issues continue to shift to the local level,

understanding the factors that shape local capacityfor water and wastewater management is crucial.

Policy and Governance was originally defined as aseparate research theme at the outset of theCanadian Water Network, while acknowledgingthat the research is closely connected to otherthemes. The objective of the Policy andGovernance theme is to develop comprehensive,effective instruments for managing water quality;quantity and allocation; sustainability in aquaticecosystems; water-related health issues; andcommercialization of water resources.

On a broad scale, researchers are evaluatinggovernance “instruments” at both provincial andfederal levels, comparing their effectiveness inproviding sustainable water management inCanada. Issues addressed include access toreliable water supplies and the development andevaluation of capacity enhancement mechanismsthat reflect local challenges of the study watershedcommunities. These include the Grand River,Maitland River, Annapolis Valley and OldmanRiver watersheds.

One project examines governance issues in theNorth American Great Lakes – systems thatcontain approximately 20 per cent of the world’s fresh surface water. These governancearrangements span two countries, nine state andprovincial governments and thousands of localgovernments. The project addresses theregulation of toxic chemical pollution; lake levelsand water quantity management; governance of

water export; lakewide and basinwide planning;and the management of exotic and predatoryspecies. Another project examines analyticalmodels for dispute resolution as a result of bulkwater export conflicts.

In addition, an interdisciplinary group ofeconomists and biologists is examining the valueof tap water as a commodity to Canadians anddetermining the extent to which consumerswould be willing to pay for better quality drinkingwater in order to reduce their risk of exposure topathogens and harmful chemicals in their water.

1 Policy and Governance

The Network’s research focuses on SEVEN key themes:1. Policy and Governance 2. Water Resources Management

3. Safe Drinking Water 4. Water and Public Health

5. Wastewater Management 6. Infrastructure

7. Groundwater and Sediment: Protection and Remediation


Managing the watershed

…not just the water.

Using a “watershed approach,” the Water Resources Management theme integrates

multidisciplinary and multi-regional researchacross Canada through the study of watersheds.This approach, also embraced in the six otherCWN themes, involves various watersheds acrossCanada, including the Lower Fraser Valley(British Columbia), Grand River (Ontario),Annapolis Valley (Nova Scotia), the St. John Riverbasin (New Brunswick), Saskatchewan River(Saskatchewan), Oldman River (Alberta),Maitland River (Ontario) and others. Research inthe Water Resources Management themeconsiders how natural and human activities in awatershed impact both water quantity andquality. The projects address a range of systems,from pristine to heavily impacted watersheds.

One CWN project, for example, examines theimpact of agricultural and urban activities in theRed Deer, Bow and Oldman river systems inAlberta and Saskatchewan. Each of the threewatersheds has a major urban centre betweenthe foothills and the prairie region. They alsosupport forestry, grazing, grain production andlivestock operations. The CWN project integratesecologists, physicists and economists into anexpert system to examine links between waterquality, quantity and land use. The objective is todetermine the potential impact of land usechanges and the spatial extent of these changeson the provision of a clean water source.

The Lower Fraser Valley (LFV) in BritishColumbia is one of the fastest growing regions inCanada and water pollution problems areincreasing just as rapidly. A study of the impact of

land use activities is being conducted as part ofanother CWN project. Excess nutrients, tracemetals and antibiotics are being traced throughseven sub-watersheds in the LFV system todetermine the effectiveness of best managementpractices for reducing agricultural impacts.

Multidisciplinary CWN projects are alsoexamining the impact of metal toxicity, miningactivity, winter snow accumulation andincreased spring and summer runoff due toforecasted climate warming and the potential forsurface water quality changes. Identification andpotential resolutions of these problems are theultimate goals of these projects.

2Water Resources Management

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From the source to the tap!

Drinking water utilities that treat surface water have begun to recognize the

important role the watershed plays in theplanning and operation of delivering safedrinking water to Canadians. Water supplies arelimited and authorities are challenged withmeeting the growing demands for domestic,recreational, industrial and agricultural water.The spread of water-borne pathogens in drinkingwater has resulted in a series of major infections,a number of deaths, serious health warnings, boilwater orders and temporary shutdowns ofmunicipal water treatment facilities.

Source water protection is an important step inachieving improved water quality at the tap forthe Canadian consumer and reducing the risk ofwater-borne disease. This research themeexamines the need for source water qualityassessment and watershed management inaddition to the provision of adequate treatment.

Events of the last decade have emphasized theneed for adequate disinfection of drinking waterto inactivate pathogens such as Giardia andCryptosporidium. In response to these needs aCWN project, in co-operation with researchpartners in industry, government and the healthsector, is developing better molecular-basedmethods to detect Cryptosporidium inenvironmental water samples. Another CWN project is developing a rapid yet accurate methodto detect pathogens in water in order to improvepublic health protection. The technology isbased on bacterial DNA identification todetermine pollution sources and types.

At the watershed level, one study examines localinitiatives to protect the Grand River watershedin southern Ontario – a drinking water source forup to 500,000 people. It is also one of the mostheavily impacted watersheds in Canada. Theproject is evaluating a recently initiated RuralWater Quality Program, developed to protect theGrand River watershed by educating farmers andproviding subsidies for various measures toimprove source water characteristics.

3 SafeDrinking Water

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Wateris life!

Closely allied with the Safe Drinking Water theme in the CWN, these research projects

focus more specifically on the links between thequality of water and public health. This researchexamines ways to better assess compounds in ourwater and evaluate to what degree they present a health concern. Collaborators includeinvestigators from British Columbia, Alberta andOntario, as well as leading water quality experts inAustralia, California and China.

Since the turn of the last century, chemicaldisinfection of drinking water has beeninstrumental to improved protection of publichealth. However, the disinfection byproducts(DBPs), produced as a result of chemicaldisinfection, have sparked concerns of adversehuman health effects. The possibility that DBPsmight cause health problems has resulted inincreased investments in water treatment

and monitoringworldwide. Whileefforts to identifyDBPs have beenlimited by availableanalytical methods,new technology isbeing developed toaddress this.

CWN researchersare pursuing theidentification ofDBP profiles fromchemical waterdisinfection with

advanced analytical technology (High-FieldAsymmetric Waveform Ion MobilitySpectrometry) and comparing the results withalternative disinfectants, including ultravioletradiation. Ultimately, accurate predictions of DBPformation and how they impact human health willreduce public health concerns.

Another water quality issue of concern on anational and global scale is arsenic – a toxicantand cancer-causing agent. In some areas ofCanada, well waters contain arsenic levels abovethe Canadian guideline level. Effective removal ofarsenic demands effective monitoring methods.One CWN research group is developing a reliable,cost-effective technology for the identification ofarsenic in water, thereby assisting in thedevelopment of new technology to remove arsenicfrom our water supplies.

Identification methods are the basis of effectivecommunity and public health monitoring efforts.One CWN project is bringing together teams ofpublic health workers and scientists and carryingout a community study on the prevalence of Cryptosporidium – an important pathogen with dramatic consequences to a communitywhen water-borne outbreaks occur. The team is collecting data on weather events, land use, turbidity levels, Cryptosporidiumconcentrations in drinking water and prevalenceof the parasite in select communities. Thisinformation will help identify and understand therelationship between watershed events and thewater-borne spread of Cryptosporidium.

4Water andPublic Health

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Managing the impacts on our water cycle…

Wastewater management is of concern to allCanadians; in particular, the threat of

water-borne pathogens and chemicalcontamination to our drinking water and aquaticecosystems. Projects in this theme addressmonitoring and treatment technologies and riskassessment approaches, all in the context of howindustrial and agricultural activities affect ourwater resources.

Although much of the Canadian population isconcentrated in urban areas, the majority ofwater supplies serve smaller communities, oftenin rural settings where supporting expensive,sophisticated treatment systems is difficult. Theprimary wastewater sources in these areas areagricultural operations, individual residencesand small commercial or industrial operations.

One CWN project focuses on identifying realisticoptions for small communities by defining thetreatment characteristics of lower-cost naturaltreatment technologies, such as constructedwetlands. Another project is tackling wastemanagement, evaluating the effectiveness of“best management practices” (BMPs) related tothe storage and handling of manure on livestockfarms. Potential pathways for watercontamination on farm operations are beingexamined to determine the nature of the risks towater supplies and the effectiveness of BMPs. On-farm characterization protocols for evaluatingrisks to surrounding waters are being developedfor several provinces.

Water-borne pathogens are a significant concernfor all Canadian water users. CWN researchers

are examining the relationship betweenpathogens and indicator microorganisms duringwater and wastewater treatment that mightprovide improved measures for treatment plants.Another CWN project is investigating advancedoxidation processes in drinking water treatment– an innovative technology with the potential tohelp meet new chemical and microbiologicaldrinking water standards.

In some areas, industrial wastewater streams area major concern. The oil sands industry inAlberta produces crude oil by extracting bitumenfrom oil sands. As a result, large amounts oftailings and process water (containing napthenicacids, NAs) are produced as waste. Acute toxicityof surface waters to aquatic organisms has beenattributed to NAs released during the processingof oil sands. CWN researchers are working todetermine the real impacts of these compounds,examining how NAs may affect the respiratory,metabolic and reproductive functions of fish,phytoplankton and invertebrate communities, aswell as the migration potential of contaminatedprocess waters in surface and groundwater.

5 WastewaterManagement

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The essential connections in water delivery!

The Infrastructure theme within the CWN dealswith the critical issue of how safe water

supplies are delivered to end users. It focuses onmanagement and innovation for municipalinfrastructure of water systems across Canada.Investments in water infrastructure are urgentlyneeded. These include both drinking watertreatment plants and distribution systems, aswell as wastewater treatment and disposal. Forinstance, in Eastern Canada sewer systems andwater treatment facilities were developedconcurrently with the cities – in some cases over150 years ago. Many are now ailing and requirean injection of millions of dollars to meet current standards.

CWN projects are integrating academic research with the local needs of municipalities to incorporate improved infrastructuremanagement plans in their long term goals. The research is developing better monitoringmethods and an improved understanding of thepotential for pathogen intrusion in municipaldrinking water systems related to infrastructuredeterioration – a known and major source ofcontamination outbreaks.

CWN researchers are partnering with Canadianwater utilities in these studies and thecollaborations are fundamental to the success ofthe program. Projects now involve utilities inQuebec, New Brunswick, Saskatchewan, Albertaand Ontario, as well as international utilities inthe United States, United Kingdom, Japan, Australia, Hong Kong, China, Italy and France. Inaddressing national concerns, a globalperspective of sustainable water resources is

being developed. Through the Infrastructureresearch, and closely related projects in the Policy and Governance theme, the issues ofprivatization and public-private sectorparticipation in the management of waterutilities are being examined.

Other areas of investigation include: temporal and geographical analyses of utility databasesand distribution system interventions;determination of the causes of turbiditycomplaints; and the investigation of the role thattransient low pressures play in contaminationevents. By addressing these areas, variousutilities are providing answers to the very realquestions that are being faced across the country– what is the impact of infrastructure operationson the potential for contamination of treateddrinking water by pathogens?

6Infrastructure

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’til the well is dry.” – English proverb

“We never know the worth of water

To provide the necessary link betweenmunicipal, agricultural and industrial

activities and their impact on the safety of ourwater supply, a fully integrated approach tomanaging water resources is critical. As such,there is a need for the characterization of bothsurface water and groundwater in a watershedsystem. CWN researchers are addressing theneed for a more comprehensive understandingof Canada’s watersheds. Research teams arecurrently investigating physical, geochemical,microbiological and water supply managementissues related to contaminated systems, rivervalley aquifers and fractured rock subsurfaces.

Many watersheds across Canada arecharacterized by a subsurface system of fracturedrock. As a source of clean water, these systems areunfortunately vulnerable; they are also apotential host for long-term threats to our watersupply. Potential contaminant sources includemine tailings, municipal solid waste, pathogensand accidental spills. Until now, there has beenlittle incentive for the development of integratedmethodologies to ensure the future sustainabilityof fractured rock systems. A CWN project aims todemonstrate the applicability of modelling toolsand further the understanding of complexchemical, physical and biological processes thatoccur in watersheds with a subsurface fracturedrock system. The project integrates thecharacterization of the watershed to includeboth surface water and groundwater. It involves amultidisciplinary group of scientists with theultimate goal of ensuring the sustainability ofCanada’s water resources.

If a groundwater system is contaminated, usingconventional pump and treatment technologiescan be costly and potentially ineffective. OneCWN project is investigating an alternativesolution to remediation – permeable reactivebarriers (PRB). These systems involve excavationof aquifer materials and replacement bygeochemically reactive materials. Once installed,natural flow processes direct the contaminatedgroundwater through the PRB and removal of thecontaminant occurs. Pilot and full-scale field installations to evaluate the long-termperformance of PRBs under field conditions willbe conducted. The goal is to develop improvedPRB designs. The findings will be implemented atcontaminated sites and by regulatory agencies inCanada and internationally.

7 Groundwater and Sediment:Protection and Remediation

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1 | POLICY AND GOVERNANCE

THEME LEADER – Graham Daborn, ACADIA UNIVERSITY

Building Local Capacity to Provide Clean Water Rob de Loë & Reid Kreutzwiser, UNIVERSITY OF GUELPH

Graham Daborn, ACADIA UNIVERSITY

Multiple Objective and Multiple StakeholderDecision Making in Water Resources Management Keith Hipel, UNIVERSITY OF WATERLOO

Governance and Policy Making for the Great Lakes BasinMark Sproule-Jones, MCMASTER UNIVERSITY

Health and Social Benefits of Pathogen Reduction by Drinking Water TreatmentDiane Dupont, BROCK UNIVERSITY

Pierre Payment, INRS-INSTITUT ARMAND-FRAPPIER

2 | WATER RESOURCES MANAGEMENT

THEME LEADER – James Byrne, UNIVERSITY OF LETHBRIDGE

Forecasting Climate Change Impacts on RegionalHydrology and Water Supply in Canada james Byrne, UNIVERSITY OF LETHBRIDGE

Mohammed Dore, BROCK UNIVERSITY

Understanding Potential Impacts of Development in Pristine Arctic Environments on Water QualityUsing Nested Hydrological Studies Mike English, WILFRID LAURIER UNIVERSITY

Sherry Schiff, UNIVERSITY OF WATERLOO

Human Impacts on Water Quantity and Quality, the Implications for Ecological and Socio-EconomicProcesses and Policy Development: From Glaciers toOceans in the Saskatchewan River Basin Leland Jackson, Edward McCauley & John Post, UNIVERSITY OF CALGARY

Non-Point Sources of Pollution, Cumulative Effectsand Mitigation in Urban/Rural Fringe Watersheds Ken Hall & Hans Schreier,UNIVERSITY OF BRITISH COLUMBIA

The Influence of Agricultural and IndustrialEmissions on Metal Toxicity in the Great Lakesand the Grand River Basin David Lean, UNIVERSITY OF OTTAWA

Chuni Chakrabarti, CARLETON UNIVERSITY

Estimating the Assimilative Capacity of the Saint John River Kelly Munkittrick, UNIVERSITY OF NEW BRUNSWICK

3 | SAFE DRINKING WATER

THEME LEADER – Raymond Desjardins,ÉCOLE POLYTECHNIQUE DE MONTRÉAL

Agriculture, Ecology and Urban/Industrial Activities- Cause and Effect Associations in the Occurrenceof Water-Borne PathogensJames Byrne, UNIVERSITY OF LETHBRIDGE

Improving Disinfection Process Controls forPathogen Inactivation Through the Use ofIntegrated Disinfection Design Framework andStandardized Bench-Scale AssaysRaymond Desjardins, ÉCOLE POLYTECHNIQUE DE MONTRÉAL

Pathogen Loadings at Drinking Water Intakes on a Heavily Impacted River: Assessing Urban and Agricultural InputsPeter Huck, UNIVERSITY OF WATERLOO

Molecular-Based Detection of Water-BornePathogens: Cryptosporidium parvumHung Lee & Jack Trevors, UNIVERSITY OF GUELPH

Innovative Methods for the Detection of Pathogens and Evaluation of the Fecal Indexes of Microbial Pollution Pierre Payment, INRS-INSTITUT ARMAND-FRAPPIER

Roland Brousseau, NRC-BIOTECHNOLOGY RESEARCH INSTITUTE

“Water is the driver of Nature.” ~ Leonardo Da Vinci

“If there is magic on the planet, it is contained in water.”~ Loren Eisley

CWN Projects

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4 | WATER AND PUBLIC HEALTH

THEME LEADER – Steve Hrudey, UNIVERSITY OF ALBERTA

Novel Polar Disinfection Byproducts and HealthRisk Tradeoffs for Drinking Water Disinfection Steve Hrudey, UNIVERSITY OF ALBERTA

Watershed Events and Water-Borne Transmissionof Cryptosporidiosis.Judy Isaac-Renton, UNIVERSITY OF BRITISH COLUMBIA

Speciation of Arsenic in Drinking Water and HealthEffects from Arsenic Exposure X. Chris Le, UNIVERSITY OF ALBERTA

5 | WASTEWATER MANAGEMENT

THEME LEADER – Eric Hall, UNIVERSITY OF BRITISH COLUMBIA

Surface and Groundwater Management in the OilSands IndustryGeorge Dixon & James Barker, UNIVERSITY OF WATERLOO

Small Scale Rural Wastewater Solutions InitiativeRobert Gordon, NOVA SCOTIA AGRICULTURAL COLLEGE

Graham Gagnon, DALHOUSIE UNIVERSITY

Applications and Barriers to Innovation in Use of Advanced Oxidation Processes in Managementof Wastewater Cooper Langford, UNIVERSITY OF CALGARY

Water-Borne Pathogens: Occurrence in Wastewater,Removal by Treatment and Risk Assessment ofTheir Effect on Public Health Pierre Payment, INRS-INSTITUT ARMAND-FRAPPIER

Impacts of Manure Management Practices on Regional Water Resources: Priority Areas,Alternative Management Approaches, Economic Implications David Rudolph, UNIVERSITY OF WATERLOO

6 | INFRASTRUCTURE

THEME LEADER – Mohammed Dore,BROCK UNIVERSITY

Water Infrastructure: Long-Term Supply andDemand Management, and PlanningBryan Karney, UNIVERSITY OF TORONTO

Mohammed Dore, BROCK UNIVERSITY

Impact of Infrastructure Management on theContamination of Drinking Water with PathogensMichèle Prévost, ÉCOLE POLYTECHNIQUE DE MONTRÉAL

7 | GROUNDWATER AND SEDIMENT:PROTECTION AND REMEDIATION

THEME LEADER - Leslie Smith,UNIVERSITY OF BRITISH COLUMBIA

Coupling Between Rivers and Alluvial andFractured Bedrock Groundwater Flow Systems Tom Al & Kerry MacQuarrie,UNIVERSITY OF NEW BRUNSWICK

Permeable Reactive Barriers for Treatment ofDissolved MetalsDavid Blowes, UNIVERSITY OF WATERLOO

Réjean Samson, ÉCOLE POLYTECHNIQUE DE MONTRÉAL

Contaminant Fate and Transport in IntegratedFractured Rock Subsurface and Surface Water Systems Jon Sykes & Edward Sudicky, UNIVERSITY OF WATERLOO

“All the water that will ever be is right now.”~ National Geographic

“We never know the worth of water ’til the well is dry.”~ English Proverb

CWN Projects

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The CanadianWater Network 2003 Highlight

Inaugural National SymposiumConnecting Water Resources 2003SAINT JOHN, NEW BRUNSWICK

The Symposium program was full, fast-paced,and all sessions were well attended.

Presentations of the 28 research projects currentlyunderway within the CWN, along with invitedpresentations of other federal and provincial waterinitiatives, underscored the excellence of waterresearch happening in Canada. Panel discussionswith question-and-answer sessions provided anopportunity for stakeholders from differentsectors to express their viewpoints and react towhat they heard.

Symposium discussions touched on many topicsof current interest for water: problems withidentification, detection and treatment ofpathogens and other contaminants in drinkingwater; balancing the many competing priorities inthe management of water quantity and quality;and the massive job ahead in infrastructurerenewal both in Canada and globally.

“I felt very encouraged by the depth and breadthof work sponsored by the Canadian WaterNetwork, and the scope of involvement by waterprofessionals across Canada in solving local,national and international problems. Canadiansand the Canadian environmental industry willbenefit greatly by this initiative,” says Hadi Husain,Director, Process R&D, Zenon Environmental, Inc.

A major focus of future CWN initiatives will be tobuild on this momentum and to continue toaddress, from a practical standpoint, how we canboth achieve good science and its functionalcommunication and application to water issues.

For a list of Symposium sponsors and moreinformation, visit www.cwn-rce-symposium.org

“A Network is really born when the dialogue growsexponentially. The Symposium was a kick start for that growth.”

WILLIAM CAIRNS, Chief Scientist, Trojan Technologies, Inc.

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BOARD OF DIRECTORSWilliam Borland | Board Chair, Director ofEnvironmental Affairs, J.D. Irving, Ltd., SAINT JOHN, NB

John Carey | Executive Director, EnvironmentCanada’s National Water Research Institute, BURLINGTON, ON

Paul Glover | Director General, Safe EnvironmentsProgramme, Health Canada, OTTAWA, ON

Robert Dawson | Vice-President, EnvironmentalProcess Engineering, Stantec Consulting Ltd., VICTORIA, BC

Richard Findlay | Director, National Water Program,Pollution Probe, OTTAWA, ON

Linda Gowman | Vice-President, Science andTechnology, Trojan Technologies, LONDON, ON

Paul Guild | Vice-President, University Research,University of Waterloo, WATERLOO, ON

Michael Healey | Professor, University of BritishColumbia, VANCOUVER, BC

Lawrence Ignace | Senior Policy Analyst,Environment, Assembly of First Nations, OTTAWA, ON

Stephen Moran | President and CEO, CRESTech,TORONTO, ON

Kelly Munkittrick | Professor, University of NewBrunswick, ST. JOHN, NB

Maureen Reed | Associate Professor, University ofSaskatchewan, SASKATOON, SK

Mark Servos | Scientific Director, Canadian WaterNetwork, University of Waterloo, WATERLOO, ON

Howard Tennant | CEO, Tennant Management Ltd.,LETHBRIDGE, AB

Susan Till | Associate Assistant Deputy Minister,Earth Sciences Sector, Natural Resources Canada,OTTAWA, ON

Bernadette Conant | Executive Director, CanadianWater Network, University of Waterloo, WATERLOO, ON (EX OFFICIO)

Jean Saint-Vil | Program Administrator, Networks of Centres of Excellence, OTTAWA, ON (EX OFFICIO)

RESEARCH MANAGEMENTCOMMITTEE

James Byrne | Director, Water ResourcesInstitute, University of Lethbridge, LETHBRIDGE, AB

Patricia Chambers | Canada Centre for InlandWaters, BURLINGTON, ON

Graham R. Daborn | Director, Acadia Centre forEstuarine Research, Acadia University, WOLFVILLE, NS

Ralph Daley | UN University, International Networkon Water, Environment and Health, McMasterUniversity, HAMILTON, ON

Raymond Desjardins | Professor, ÉcolePolytechnique de Montréal, MONTRÉAL, QC

Mohammed Dore | Professor, Brock University, ST. CATHARINES, ON

Eric R. Hall | Professor, University of BritishColumbia, VANCOUVER, BC

Steve E. Hrudey | Professor, University of Alberta,EDMONTON, AB

Hadi Husain | Director, Process Research andDevelopment, ZENON Environmental Inc., LONDON, ON

Patricia Lemay | Director, Water Quality and Health,Health Canada, OTTAWA, ON

Dan McGillivray | Director, Business Development &Technology Transfer-Earth Systems, CRESTech,TORONTO, ON

Mark Servos | Scientific Director, Canadian WaterNetwork, University of Waterloo, WATERLOO, ON

Leslie Smith | Professor, University of BritishColumbia, VANCOUVER, BC

Stephen Stanley | General Manager of Operations,EPCOR, EDMONTON, AB

A. Leslie Whitney | Director, Technology AssessmentDivision, Geomatics Canada, OTTAWA, ON

Bernadette Conant | Executive Director, CanadianWater Network, University of Waterloo, WATERLOO, ON (EX OFFICIO)

Jean Saint-Vil | Program Administrator, Networks ofCentres of Excellence, OTTAWA, ON (EX OFFICIO)

CWN Network

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Acadia University,WOLFVILLE, NS

Bell, CDaborn, G

University of Alberta, EDMONTON, AB

Fedorak, P Froese, KLKowalewska, KLe, XCPreiksaitis, JThian-Yew, G

University of BritishColumbia,VANCOUVER, BC

Hall, KCullen, WFyfe, MIsaac-Renton, JLence, BMarion, SMayer, KOng, CQuick, M Schreier, HSmith, L

Brock University, ST. CATHARINES, ON

Dore, MDupont, D

University ofCalgary, CALGARY, AB

Bentley, LEinsiedel, EHorbulyk, THutcheon, IJackson, LKantzas, A Kupchenko, NLangford, CMcCauley, EMayer, BPost, JRTodosichuk, PVoordouw, G

Carleton University, OTTAWA, ON

Chakrabarti, CGould, WD

Dalhousie University,HALIFAX, NS

Gagnon, G

École Polytechnique de Montréal, MONTRÉAL, QC

Allard, DBarbeau, BBardeau, JComeau, YDesjardins, RGauthier, VLaurent, PPrévost, MSamson, RZagury, G

University of Guelph, GUELPH, ON

Bunce, NCaldwell, Wde Loë, RGriffiths, MHall, C Heathcote, IHilts, S Kreutzwiser, R Lee, H Parkin, GTrevors, Jvan der Kraak, GWeersink, AYang, W

Institut national dela recherchescientifique, LAVAL, QC

Payment, P

Université Laval,LAVAL, QC

Therrien, RTremblay, J

University ofLethbridge,LETHBRIDGE, AB

Byrne, JGannon, VKienzle, SSelinger, BThomas, J

University ofManitoba, WINNIPEG, MB

Woodbury, A

McMaster University,HAMILTON, ON

Sproule-Jones, MSmith, J

Université deMontréal,MONTRÉAL, QC

Brousseau, R

Memorial University,ST. JOHN’S, NF

Gale, J

NS AgriculturalCollege,TRURO, NS

Gordon, R

University of Ottawa,OTTAWA, ON

Lean, D

University of PrinceEdward Island,CHARLOTTETOWN, PEI

VanLeeuwen, J Teather, K

Queens University, KINGSTON, ON

Kyser, K

University of Regina, REGINA, SK

Sauchyn, D

Royal MilitaryCollege, KINGSTON, ON

Reimer, K

Ryerson PolytechnicUniversity, TORONTO, ON

Fang, LJohns, CTwiss, M

University ofSaskatchewan,SASKATOON, SK

Habibi, SHendry, J

Simon FraserUniversity, VANCOUVER, BC

Holbrook, A

University of Toronto, TORONTO, ON

Adams, BKarney, BKennedy, CPeltier, W

University of New Brunswick, SAINT JOHN, NB

Al, TButler, KCunjak, RCurry, AHaralampides, KMacLatchy, DMacQuarrie, KMunkittrick, KRidler, N

University ofWaterloo, WATERLOO, ON

Andrews, SBarker, JBlowes, DBols, NButler, B Dixon, GEckel, LGreenberg, BHipel, K Huck, P Michaels, SPower, MPtacek, CRudolph, DSchiff, SSmith, R Sudicky, E Sykes, JWerker, A

University of Windsor,WINDSOR, ON

Ciborowski, J

Wilfrid LaurierUniversity, WATERLOO, ON

English, MLee, LKilgour, M

Researchers

17


INDUSTRIES

Komex Inc.CALGARY, AB

Syncrude Canada Ltd.EDMONTON, AB

Suncor Inc.FORT MCMURRAY, AB

Albian SandsFORT MCMURRAY, AB

PERMEnvironmentalCALGARY, AB

Golder AssociatesCALGARY, AB

TrueNorth Energy LPCALGARY, AB

Canadian NaturalResources LimitedCALGARY, AB

Alberta HeritageFoundation forMedical ResearchEDMONTON, AB

Placer Dome Ltd.VANCOUVER, BC

Joule MicrosystemsCanadaDELTA, BC

MWH Global/MWHSoft Inc.COLORADO, USA

ADI GroupFREDERICTON, NB

J.D. Irving Ltd.SAINT JOHN, NB

Fraser Papers Inc.EDMUNSTON, NB

NEXFOREDMUNSTON, NB

TerrAtlantic Engineering LimitedFREDERICTON, NB

FracFlowConsultantsST. JOHN’S, NF

Broken Hill Property LimitedYELLOWKNIFE, NWT

Ajax WSPAJAX, ON

Centre for Research in Earth and SpaceTechnologyTORONTO, ON

CH2M Hill CanadaLimitedTORONTO, ON

Ontario PowerGeneration Inc.TORONTO, ON

Falconbridge Ltd.TORONTO, ON

Placer Dome Ltd.TORONTO, ON

ICI Forest ProductsTORONTO, ON

Cougar AutomationTORONTO, ON

IPEXDON MILLS, ON

GAPEnviroMicrobialServicesLONDON, ON

Trojan Technologies Inc.LONDON, ON

XCG Consultants Ltd.OAKVILLE, ON

ZENONEnvironmental Inc.OAKVILLE, ON

Michael HunterCertified CropAdvisorRIPLEY, ON

C-3 EnvironmentalBRESLAU, ON

Earth Tech CanadaST. CATHARINES, ON

Water and Earth Sciences AssociatesWATERLOO, ON

CRA Engineering Inc.WATERLOO, ON

Syngenta CropProtectionGUELPH, ON

Bio-RadLaboratoriesMISSISSAUGA, ON

Golder AssociatesTORONTO, ON

Calgon Carbon CorpPENNSYLVANIA, USA

CambiorLONGUEUIL, QC

TRIAXLAVAL, QC

John Meunier Inc.SAINT-LAURENT, QC

OTransit inc.MONTREAL, QC

NorandaPOINTE CLAIRE, QC

Genex Swine GroupREGINA, SK

River Ridge Cattle CompanyREGINA, SK

FEDERALDEPARTMENTSAND AGENCIES

Health CanadaLETHBRIDGE, AB

EnvironmentCanadaVANCOUVER, BC

Fisheries andOceans Canada,Pacific BiologicalStationNANAIMO, BC

Fisheries andOceans Canada -Gulf RegionMONCTON, NB

Canadian Wildlife BranchSACKVILLE, NB

Geological Survey ofCanada (Atlantic)DARTMOUTH, NS

Agriculture and Agri-Food CanadaTRURO, NS

Indian and NorthernAffairs CanadaYELLOWKNIFE, NWT

Canada ResearchChair SecretariatOTTAWA, ON

Health CanadaOTTAWA, ON

National ResearchCouncil CanadaOTTAWA, ON

National ResearchCouncil /BiotechnologyResearch InstituteMONTREAL, QC

Agriculture and Agri-Food CanadaGUELPH, ON

Agriculture and Agri-Food CanadaOTTAWA, ON

National WaterResearch Institute,EnvironmentCanadaBURLINGTON, ON

Natural Resources CanadaOTTAWA, ON

EnvironmentCanadaDOWNSVIEW, ON

Fisheries andOceans Canada,Oceans StewardshipBranchOTTAWA, ON

Agriculture and Agri-Food CanadaCHARLOTTETOWN, PEI

National WaterResearch Institute,SASKATOON, SK

Agriculture and Agri-Food CanadaREGINA, SK

Human ResourcesDevelopmentCanadaHULL, QC

PROVINCIALDEPARTMENTS AND AGENCIES

AB HealthEDMONTON, AB

AB Environment EDMONTON, AB

AB Environment FORT MCLEOD, AB

AB Environment LETHBRIDGE, AB

BC Ministry ofEnvironmentSURREY, BC

BC Municipal AffairsVICTORIA, BC

BC Department ofFisheries andOceansNANAIMO, BC

Ministry ofCommunity,Aboriginal & Women's ServicesVICTORIA, BC

BC Centre for Disease ControlVANCOUVER, BC

BC HydroVANCOUVER, BC

Innu NationLabradorDAVIS INLET, LABRADOR

MB Water Resource BranchWINNIPEG, MB

MB ConservationWINNIPEG, MB

NB Office of Human ResourcesFREDERICTON, NB

NB Department ofEnvironment andLocal GovernmentFREDERICTON, NB

NB Department ofNatural Resourcesand EnergyFREDERICTON, NB

NB ScienceMentorship programSAINT JOHN, NB

New BrunswickOffice of HumanResourcesSAINT JOHN, NB

NS Department ofAgriculture andFisheries TRURO, NS

NS Soils InstituteTRURO, NS

Partners

18


NS Federation ofAgricultureTRURO, NS

NS Department ofEnvironmentHALIFAX, NS

Pork Nova ScotiaTRURO, NS

NS EnvironmentalFarm Plan ProgramTRURO, NS

ON Ministry of theEnvironmentTORONTO, ON

Ontario PowerGenerationTORONTO, ON

ON Ministry ofAgricultureGUELPH, ON

ON Federation ofAgricultureBOWMANVILLE, ON

Premier's ResearchExcellence AwardTORONTO, ON

ON Innovation Trust FundTORONTO, ON

ON Ministry ofNatural ResourcesPETERBOROUGH, ON

Mushua NationDAVIS INLET, LABRADOR

Fisheries,Aquaculture andEnvironmentCHARLOTTETOWN, PEI

Holland CollegeSUMMERSIDE, PEI

Ministère del'environnement du QuébecMONTREAL, QC

CommunautéUrbaine de QuébecQUÉBEC, QC

QC Municipal AffairsMONTREAL, QC

Prairie FarmRehabilitationREGINA, SK

SaskatchewanAgriculturalDevelopment FundREGINA, SK

Saskatchewan PorkSASKATOON, SK

Yukon Conservation SocietyWHITEHORSE, YT

Maine Department of EnvironmentalProtectionMAINE, USA

LOCALGOVERNMENTSAND OTHERS

Oldman River Water Quality LETHBRIDGE, AB

Lethbridge NorthernIrrigation DistrictLETHBRIDGE, AB

Chinook Health RegionLETHBRIDGE, AB

Bow River BasinCouncilCALGARY, AB

City of CalgaryWaterworksCALGARY, AB

City of ChilliwackCHILLIWACK, BC

District of KentAGASSIZ, BC

City of BurnabyBURNABY, BC

Water UtilitiesVancouverVANCOUVER, BC

Greater VancouverRegional District VANCOUVER, BC

Ducks UnlimitedCanadaSTONEWALL, MB

Dunn Wildlife FundSAINT JOHN, NB

City of FrederictonFREDERICTON, NB

City of Saint JohnSAINT JOHN, NB

Atlantic CoastalAction Program -Saint JohnSAINT JOHN, NB

Clean Annapolis RiverProjectANNAPOLIS RIVER, NS

Acadia Centre forEstuarine ResearchWOLFVILLE, NS

Centre for Research inEarth and SpaceTechnologyTORONTO, ON

Ontario Cattlemen'sAssocationGUELPH, ON

Canadian Institute forEnvironmental Lawand PolicyTORONTO, ON

International JointCommission on Great LakesWINDSOR, ON

EnvironmentalDefense CanadaTORONTO, ON

International Council for LocalEnvironmentalInitiativesTORONTO, ON

Grand RiverConservationAuthorityCAMBRIDGE, ON

City of BrantfordBRANTFORD, ON

Regional Municipalityof WaterlooKITCHENER, ON

Regional Municipalityof NiagaraTHOROLD, ON

Water UtilitiesThunder BayTHUNDER BAY, ON

Water UtilitiesTorontoTORONTO, ON

Water UtilitiesOttawa-CarletonOTTAWA, ON

Maitland RiverConservationAuthorityWROXETER, ON

Climate ChangeAction FundOTTAWA, ON

Town of GoderichGODERICH, ON

County of HuronGODERICH, ON

City of HamiltonHAMILTON, ON

Hamilton HealthSciences CorporationHAMILTON, ON

Ontario PorkAYR, ON

The Council ofCanadiansOTTAWA, ON

Crop Life CanadaETOBICOKE, ON

County of OxfordDepartment of Public WorksWOODSTOCK, ON

City of MontrealMONTREAL, QC

City of LavalLAVAL, QC

Communauté urbainede QuébecQUÉBEC, QC

City of RepentignyREPENTIGNY, QC

City ofRosemère/LorraineROSEMÈRE, QC

City of Saint-EustacheSAINT-EUSTACHE, QC

Yukon ConservationSocietyWHITEHORSE, YK

New BrunswickWildlife Trust FundFREDERICTON, NB

Canadian Network ofToxicology CentresGUELPH, ON

AgriculturalAdaptation CouncilGUELPH, ON

City of Boisbriand, BOISBRIAND, QC

City of OkaOKA, QC

City of Deux-MontagnesDEUX-MONTAGNES, QC

City of TerrebonneTERREBONNE, QC

City of MascoucheMASCOUCHE, QC

City of Ste-ThérèseSTE-THÉRÈSE, QC

Water EnvironmentResearch FoundationVIRGINIA, USA

Landcare ResearchNew ZealandHAMILTON, NEW ZEALAND

Disaster PreventionResearch Institute,Kyoto University,JapanKYOTO, JAPAN

Tohoku University,JapanSENDAI, JAPAN

Cooperative ResearchCenter for WaterQuality andTreatmentSALISBURY, AUSTRALIA

Resources for the FutureWASHINGTON DC, USA

Black & VeatchGEORGIA, USA

United StatesGeological SurveyVIRGINIA, USA

Abruzzo Science ParkABRUZZO, ITALY

AtlanticEnvironmentalScience NetworkNew BrunswickSACKVILLE, NB

Partners

19


Auditors’ Report

To the Board of Directors of the Canadian Water Network

We have audited the statement of financial position of the Canadian Water Network [“CWN”] as of March31, 2003 and the statements of operations and net assets and cash flows for the year then ended. Thesefinancial statements are the responsibility of the CWN’s management. Our responsibility is to expressan opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Thosestandards require that we plan and perform an audit to obtain reasonable assurance whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position ofthe Canadian Water Network as at March 31, 2003 and the results of its operations and its cash flows forthe year then ended in accordance with Canadian generally accepted accounting principles.

Kitchener, OntarioAugust 26, 2003 Chartered Accountants

20


Canadian Water Network Financial Statement

Canadian Water NetworkSTATEMENT OF FINANCIAL POSITION

As at March 31 2003 2002

$ $

ASSETS

Current assets

Funds held by the University of Waterloo 2,245,428 2,487,403

Accounts receivable 76,094 25,000

Total assets 2,321,522 2,512,403

LIABILITIES AND NET ASSETS

Current liabilities

Accounts payable 183,902 92,558

Due to the University of Waterloo 374,491 317,420

Total current liabilities 558,393 409,978

Deferred contributions [note 3] 1,659,142 2,101,876

2,217,535 2,511,854

NET ASSETS

Unrestricted 103,987 549

Total liabilities and net assets 2,321,522 2,512,403

See accompanying notes

21



Canadian Water NetworkSTATEMENT OF OPERATIONS AND NET ASSETS

Year ended March 31 2003 2002

$ $

REVENUE

Amortization of Network 3,663,734 2,980,124

Centres of Excellence grants

Other grants and conference fees 111,273 25,000

3,775,007 3,005,124

EXPENSES

Research projects [note 4] 3,016,134 2,609,597

Salaries and benefits 120,809 100,763

Consultants 112,711 90,529

Office overhead 79,020 95,204

Communications/networking/meetings 337,641 85,258

Miscellaneous 5,254 23,224

3,671,569 3,004,575

Net income 103,438 549

Net assets, beginning of year 549 —

Net assets, end of year 103,987 549


22



Canadian Water NetworkSTATEMENT OF CASH FLOWS

Year ended March 31 2003 2002

$ $

OPERATING ACTIVITIES

Excess of revenue over expenses 103,438 549

Changes in operating assets and liabilities

(Increase) in accounts receivable (51,094) (25,000)

Increase in accounts payable 91,344 92,558

Increase in due to the University of Waterloo 57,071 317,420

(Decrease) in deferred contributions (442,734) (445,124)

Cash (applied to) operating activities (241,975) (59,597)

Funds held by the University of Waterloo, beginning of year 2,487,403 2,547,000

Funds held by the University of Waterloo, end of year 2,245,428 2,487,403


23


Notes to Financial Statement

1. DESCRIPTION

The Canadian Water Network [“CWN”] is one of22 research networks funded by the CanadianNetwork of Centres of Excellence [“NCE”]program. The CWN mission is to ensure Canada’sleadership role in the management andsustainable use of water resources, in theprotection of human and aquatic ecosystemhealth and in sustaining economic growth in thetechnology and services sector. The CWN fulfilsits mission by developing, supporting andpublicizing research initiatives on water-relatedissues important to Canada. The research iscarried out by university investigators atnumerous Canadian universities; financialsupport for the research is transferred from theAdministrative Centre based at the University ofWaterloo, to the investigators’ universities. Asallowed within the NCE guidelines, the CWN hasnot been incorporated as a separate legal entity,but functions as a unit within the University ofWaterloo. The CWN does maintain separatereporting and management functions from theUniversity of Waterloo.

The CWN develops and supports diverse,multidisciplinary research projects addressingcritical water issues. Research undertaken by theCWN is grouped into seven theme areas: Policyand Governance, Water Resources Management,Safe Drinking Water, Water and Public Health,Wastewater Management, Infrastructure, andGroundwater and Sediment: Protection andRemediation. There is an emphasis on theimportance of considering the socio-economicaspects of water management in conjunctionwith scientific research.

2. SUMMARY OF SIGNIFICANTACCOUNTING POLICIES

The following is a summary of the significantaccounting policies followed in the preparationof the accompanying financial statements.

Funds held by the University of WaterlooThe CWN deposits its cash funds with the University of Waterloo. Funds are disbursedby the University of Waterloo on behalf of theCWN. Administrative expenses are paidoriginally by the University of Waterloo. These arerepaid annually by the CWN and are presented asa due to the University of Waterloo in thesefinancial statements.

Revenue recognitionThe CWN follows the deferral method ofaccounting for contributions, which includedonations and Network of Centres of Excellenceprogram grants. Unrestricted grants or feecontributions are recognized as income in theyear when received or receivable if the amount tobe received has been committed in the year, canbe reasonably estimated and collection isassured. Restricted NCE grants and otherrestricted contributions are recognized asincome in the year in which the related expensesare incurred.

Research project expensesResearch projects are recorded as an expense inthe year that the funds are disbursed to thevarious research institutions.

24


Notesto Financial Statement

Use of estimatesThe preparation of the financial statements, inconformity with Canadian generally acceptedaccounting principles, requires management tomake estimates and assumptions that affect theamounts reported in the financial statementsand accompanying notes. Actual results coulddiffer from those estimates.

3. DEFERRED CONTRIBUTIONS

2003 2002$ $

Balance, beginning of year 2,101,876 2,547,000

Add amounts received in the year 3,221,000 2,535,000

Less amounts amortized to revenue in the year (3,663,734) (2,980,124)

Balance, end of year 1,659,142 2,101,876

4. RESEARCH PROJECTS

During the fiscal year ending March 31, 2003, theCWN distributed research funds in the amount of$3,016,134 [2002 - $2,609,597]. Funds weredistributed in accordance with the Board ofDirector’s approval and the ResearchManagement Committee’s review and approvalof research projects.

5. RELATED PARTIES

The University of Waterloo [“UW”] is party to the NCE funding agreement and functions as the Network Host for purposes of administration of the grant funding.

a.The UW provides accounting and administrative support services as well as office space without charge to the CWN.

b.The CWN paid a total of $568,452 [2002 - $555,992] in research project grants to the UW for approved research activities.

c. As detailed in the Funding Agreement signed among the CWN, the UW and the NCE,external funds received by the CWN are held in trust by the UW.

6. INCOME TAXES

The CWN operates as a unit within the Universityof Waterloo. The University of Waterloo is aregistered charity under Section 149 of theIncome Tax Act and is, therefore, exempt fromincome taxes.

CANADIAN WATER NETWORK ADMINISTRATIVE CENTREUniversity of Waterloo200 University Avenue WestWaterloo, ON N2L 3G1Phone: (519) 888-4567, ext. 6367Fax: (519) 883-7574

www.cwn-rce.ca

ACKNOWLEDGEMENTS

Networks of Centres of ExcellenceNCE Program Directorate Jean-Claude Gavrel, DirectorJean Saint-Vil, Program Administrator

University of Waterloo, Host InstitutionDavid Johnston, PresidentPaul Guild, Vice President,University Research

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