What was the First Nations Drinking Water Settlement of 2021?

The First Nations Drinking Water Settlement was a class-action settlement of about 8 billion dollars finalised in December 2021 to compensate First Nations and individual members for damages from prolonged federal failure to provide safe drinking water on reserves. The settlement covered claims dating back to November 20, 1995 and is one of the largest Indigenous class-action settlements in Canadian history. The settlement included 1.5 billion dollars in individual compensation, 50 million dollars for class counsel fees, and 6 billion dollars committed for capital investments in First Nations water infrastructure over 9 years.

The class actions were filed in 2019 by the Curve Lake First Nation (Ontario), Tataskweyak Cree Nation (Manitoba), Neskantaga First Nation (Ontario, subject to a continuous boil-water advisory since 1995, the longest in Canadian history), and other First Nations. The class actions alleged that the federal Crown had breached its fiduciary, treaty, and constitutional duties by failing to provide safe and reliable drinking water on reserves. As of class action filing, about 60 First Nations communities had long-term boil-water advisories or other water advisories, and many more had endured shorter-term advisories.

The federal Liberal government had promised in 2015 to end all First Nations boil-water advisories by 2021. Justin Trudeau's commitment was widely seen as failed when the deadline arrived with about 50 long-term advisories still in place. The class actions added legal pressure to the political commitment. After mediation from late 2020 through summer 2021, the federal government agreed to a consolidated settlement. The Federal Court (Mr. Justice Paul Favel) approved the settlement on December 23, 2021.

Settlement terms included: 1.5 billion dollars in individual compensation (payments to First Nations members of affected communities and additional amounts for affected community members); 50 million dollars in class counsel fees; 6 billion dollars over 9 years for federal investment in First Nations water infrastructure (replacing older annual federal investment commitments); a federal commitment to support a renewed approach to First Nations water in close partnership with First Nations; an independent First Nations water resource and oversight authority; and statutory acknowledgement of the federal Crown's commitment to ending First Nations water issues. By 2024 about 22 long-term boil-water advisories remained in place (down from about 60 at the time of the Settlement). Claims processing for individual compensation was ongoing through 2024.