Hanover and West Grey Considering Boundary Adjustment to Unlock Regional Growth
Hanover and West Grey are advancing a proposed boundary adjustment that would transfer 1,600 acres and support long-term housing and economic growth.
The Town of Hanover and the Municipality of West Grey have reached an agreement in principle on a proposed boundary adjustment that would transfer approximately 1,600 acres of land from West Grey to Hanover.
The municipalities say the move is intended to enable long-term economic growth, unlock development potential, and benefit residents across both communities.
The proposed boundary change — dubbed the “Mutual Prosperity” agreement — has been in the works throughout the current term of council. Representatives from both municipalities have held ongoing discussions over the past year to address shared challenges around development capacity, housing demand, and infrastructure readiness.
Hanover Mayor Sue Paterson said the agreement responds directly to development pressure in the Hanover area.
“Our region is an attractive place to live and do business. The Hanover area has tremendous pressure to grow, but a lack of available land for development has stalled major progress,” said Paterson.
“Thanks to forward-looking collaboration with West Grey, we have identified a mutually beneficial path forward that can help unlock the economic power of this area for the benefit of Grey County residents and businesses for generations.”
In exchange for the transfer of lands, Hanover has agreed to provide $10 million in financial compensation to West Grey, to be paid out over a 20-year period.
Both municipalities are preparing to enter the formal process outlined under the Municipal Act, 2001, which governs how boundary adjustments are negotiated and implemented in Ontario.
West Grey Mayor Kevin Eccles emphasized the importance of cooperation and long-term thinking.
“There have been frank discussions over the past year to ensure we are collectively considering the impact of any recommended changes for the long-term sustainability of our communities,” Eccles said.
“Both municipalities recognize the potential for growth in this area of the County and we’ve worked together to recommend an equitable solution that will benefit both municipalities well into the future.”
The lands identified for transfer are located near existing municipal servicing and settlement areas. Officials say this makes them suitable for future growth under both local and provincial planning frameworks. The adjustment is also intended to align with provincial growth targets.
Importantly, the municipalities have noted that farmland within the proposed boundary area may continue to be farmed indefinitely. Property owners are not required to develop their lands as a result of the boundary change. Any future development will be subject to local zoning bylaws and provincial planning policies.
The proposal includes provisions for housing development, job creation, and increased tax assessment potential, all of which would support future municipal services and infrastructure investment. However, no development will proceed without a full planning review.
A public meeting on the proposed boundary adjustment will be held on Wednesday, November 19, 2025, at 6:30 p.m. at the Elmwood Community Centre. Residents from both municipalities are encouraged to attend to learn more, ask questions, and provide feedback.
Full maps, background documents, and frequently asked questions are available on the municipal websites: