Additions to Reserve/Reserve Creation: Guidelines for Interim Policy Redesign Measures, 2025

Effective date

These guidelines will be administered by Indigenous Services Canada (ISC). These guidelines received approval on August 1, 2025, and are effective as of this date.

Directive 10-1: Section 8.0 Principles

A phase I Environmental Site Assessment is required before land can be added to a Reserve. This assessment is critical to establish a foundational baseline of the land's environmental condition at the time of Reserve Creation:

"8.0 f) Suspected or known environmental contamination does not preclude adding land to Reserve where:"

1. "The First Nation provides to Canada an Environmental Site Assessment that meets the standards established by the Canadian Standards Association and is suitable for the First Nation's intended land use"
2. "If applicable, the First Nation has identified a party that has accepted financial responsibility for addressing known or suspected environmental contamination and the First Nation and Canada are satisfied by the assurance offered by the party. A party may include a municipality, province, federal government department or agency, the First Nation or a third party"

Sites that are not the responsibility of Canada will not be eligible for Federal Contaminated Sites Action Plan funding through ISC's Contaminated Sites On-Reserve program:

3. "Even if a party other than a federal department or agency has accepted financial responsibility for addressing known or suspected environmental contamination, the First Nation remains eligible to apply for federal funding which can assist with environmental remediation under the terms and conditions of federal programs as they may apply from time to time"

Directive 10-1: Section 9.0 Reserve Creation

It is no longer required for First Nations to fit their ATR proposals into specific categories. Canada's legal obligations will still be tracked:

"All Reserve Creation Proposals will be considered by Canada whether or not there is a legal obligation.

Where there is a legal obligation by Canada or an Agreement that contemplates Reserve Creation, the First Nation will identify that the lands are part of that legal obligation in the Reserve Creation Proposal. Examples of legal obligations include the following:

• a settlement Agreement, such as treaty land entitlement or other specific claims Agreement
• a self-government Agreement
• a land exchange Agreement
• a land transaction with a reversionary interest or right to Canada or the First Nation
• an Agreement for return of former Reserve land where there is no express reversionary interest or right
• an Agreement with a landless Band
• an Agreement for the relocation of a community, the expansion of an existing reserve land base, or the establishment of a New Reserve
• a Specific Claims Tribunal decision"

Directive 10-2: Annex A Resource 1

Streamlines the Reserve Creation Proposal Intake and removes the need to provide information that is not needed until later in the process.

The Reserve Creation Proposal Intake has been simplified, reducing the amount of information required at the initiating phase of an ATR process. The NATS portal has also been updated to reflect changes made to the intake form for First Nations who have an account to submit and manage their proposals online. First Nations interested in obtaining a NATS account should contact their ISC regional office.

It is possible that additional information will need to be provided during the joint work planning stage between the First Nation and ISC depending on the ATR project but only the information requested on the intake form is required at the initiating stage. The ISC region is still available to provide assistance in completing the proposal, at the First Nation's request.

See ISC forms by category for the updated Reserve Creation Proposal Intake under 83-185E.

Directive 10-1: Section 12.0 Proposal assessment

Previously, a community was required to demonstrate why its existing Reserve land base was not suitable for the intended land use, as well demonstrate that any economic development ATR benefits outweighed the potential tax impacts associated with Reserve Creation. It is no longer a requirement for First Nations to justify the need for Reserve land.

Directive 10-1: Section 15.0 Dispute resolution

"15.1 Canada promotes a reconciliation-focused approach when First Nations and local governments, provinces, territories or third parties are seeking to resolve issues related to Reserve Creation. The process should include a facilitative mechanism informed by First Nation dispute resolution mechanisms.

15.2 Where there are outstanding issues or concerns arising from negotiations between First Nations and Local Governments, provinces, territories or third parties, and dispute resolution options have been explored, Canada may nonetheless agree to support the Reserve Creation."

First Nations are encouraged to develop their own dispute resolution mechanisms and First Nations' dispute resolution mechanisms should be prioritized in the resolution of issues related to the ATR process, where dispute resolution provisions aren't already stipulated in a settlement Agreement.

Canada can take an active role in facilitating dispute resolution at the request of the First Nation by providing funding (where available), supporting discussions with other orders of government (particularly in cases involving municipalities), assisting in the negotiation of third party replacement agreements, etc.

There is no requirement for First Nations to document or provide their dispute resolution process to Canada, but it may be beneficial in some instances. For example, where significant risk may be incurred, where land conveyance instruments need to be negotiated, etc. Additionally, there is no requirement for First Nations to document how they've managed or attempted to manage resolving disputes, though for unresolved issues it is advisable for the First Nation to do so if it will be seeking Canada's support.

Directive 10-1: Annex A Section 3.0

"3.1 First Nations may want to discuss any improvement on Proposed Reserve Land with ISC to identify any potential concerns or issues that may have further impacts on timelines or resources and should discuss with ISC any Indian Act requirements, including designations."

Directive 10-1: Annex A Section 4.0

"4.1 As part of the ATR process ISC may need to notify other federal departments and agencies of the Reserve Creation Proposal."

In limited circumstances, which can depend on the location of the proposed ATR and project purpose, ISC may need to notify other federal departments or agencies to determine whether there will be any impacts or issues that need to be considered and addressed. The notification process can be completed in parallel to other ATR processes. While other federal departments and agencies may be given an opportunity to respond, a lack of response will not delay the ATR process.

Directive 10-1: Annex A Section 8.0

Directive 10-1: Annex A Section 9.0

"Canada will consider adding lands to Reserve where:

1. There is no immediate need for Services
2. The First Nation has a Services agreement
3. Service agreement negotiations are at an advanced stage
4. There is an operational and funding plan to put Services in place
5. The First Nation will be providing Services"

(a) "There is no immediate need for Services."

• When Services are not currently being provided on the lands, then a Services agreement is not required

(b) "The First Nation has a Services agreement."

• Here, the First Nation already has a Services agreement finalized with the relevant rural municipality, urban municipality or third party services provider. The First Nation will verify that the Services agreement will be amended to include the newly added Reserve lands if Services are required for those lands

(c) "Service agreement negotiations are at an advanced stage."

• Here, the First Nation is in need of a Services agreement. The First Nation is currently engaged in advanced negotiations with the relevant rural municipality, urban municipality or third party Services provider, and are close to reaching agreement on all substantive matters. Written confirmation of this stage of negotiations will be provided to Canada by the First Nation and the Services provider

(d) "There is an operational and funding plan to put Services in place."

• Here, the First Nation and Canada agree that Services are contemplated for the future and a plan is in place for the operation and funding of those Services

(e) "The First Nation will be providing Services."

• In situations where the First Nation intends to provide Services to the lands, the First Nation will provide to Canada written confirmation of such intention and a list of those Services. The First Nation will also confirm that no additional Services are required from any third parties

Section 9.0 goes on to say:

"Canada recognizes that First Nations need flexibility and that there may be a variety of approaches to provide Services in future."

• Services do not always have to be provided by a municipality or regional government. First Nations can contract Services from other Services providers or choose to provide their own Services. First Nations are not limited to agreements with just 1 Services provider. The types of Services required should be determined by the First Nation based on the First Nation's planned land use and timelines

"Canada recognizes that First Nations could need support to ensure Services are provided. Where a First Nation's Services plan identifies a regional government or municipality as a primary service provider, Canada will assist in the Services negotiations at the request of the First Nation and the First Nation may request that the province or a municipal organization identify lands and services facilitators to assist with the negotiation of Services."

• The First Nation can seek Services and assistance with securing Services, from appropriate parties. Canada may, upon request by the First Nation, assist in the Services negotiations. The First Nation may also ask the province or a municipal organization to identify lands and services facilitators to assist with the negotiation of Services
• Other services and amenities may be included in a Services agreement as agreed to by the First Nation and Services provider(s) but at minimum the defined Services must be addressed, where applicable

Directive 10-1: Annex B Section 7.0

"A Reserve Creation Proposal for the establishment of a Joint Reserve will be considered where First Nations governance and management of a Joint Reserve have been addressed."

A Joint Reserve is land that is set apart for the use and benefit of 2 or more First Nations and that will be managed jointly by those member First Nations, the member First Nations. Typically, each member First Nation has an equal undivided interest or right in the Joint Reserve lands, regardless of the land sizes, for example, acres or hectares, of their Joint Reserves and any additions thereto. However, member First Nations may agree upon unequal and divided interests or rights in the Joint Reserve lands. Either way, certainty is important and therefore, the individual interests and rights in the Joint Reserve lands and the resulting implications should be agreed upon and clearly identified and documented for each member First Nation.

There are 3 types of Reserve Creation Proposals for Joint Reserves:

• Lands that are set apart for the use and benefit of 2 or more First Nations. For example, First Nation A and First Nation B, as their first Joint Reserve named Joint Reserve No. 123 
• Lands that are that are set apart for the use and benefit of First Nation A and First Nation B as subsequent Joint Reserves. For example, Joint Reserve No. 234 and Joint Reserve No. 345
• Lands that are set apart for the use and benefit of First Nation A and First Nation B as additions to any of their existing Joint Reserves. For example, addition to Joint Reserve No. 123

When 2 or more First Nations wish to submit a proposal for their first Joint Reserve, the administration and management of the Joint Reserve must be subject to a written agreement between the member First Nations. These are often called co-management agreements or joint management agreements. Regardless of the name, the agreements should address these basic areas:

• A uniform set of rules and procedures for the management of the Joint Reserve, which includes, but is not limited to, the following:
  • where applicable, a process for the designation of Reserve lands pursuant to the Indian Act or the designation of pre-Reserve lands pursuant to the Addition of Lands to Reserves and Reserve Creation Act
  • a process for initiating future Joint Reserve additions to reserve. For example, a Band Council Resolution (BCR) from each member First Nation or a BCR from the chiefs of each member First Nation or a BCR from 1 or more identified people who have been duly authorized by the member First Nations to make such decisions, etc.
• If the member First Nations have their own land codes, then pursuant to the Framework Agreement on First Nation Land Management there must be uniform law-making or delegation of law-making in respect of those land codes and their applicability to the Joint Reserve
• A method to resolve disputes between the member First Nations concerning the management of the Joint Reserve
• Confirmation that Canada is not a party to the co-management or joint management agreement and that Canada cannot and will not be involved in any disputes between the member First Nations
• Where applicable, agreement on the process for the member First Nations to request the withdrawal of Indian moneys generated on the Joint Reserve and deposited into the member First Nations' joint revenue and capital trust accounts and direction on how Canada should disburse and distribute those withdrawn Indian moneys, including who has authority to make those decisions and what form of BCR will be acceptable for Canada to action. For example, what constitutes a duly convened meeting and what constitutes quorum
• A process for surrendering all or a portion of the Joint Reserve
• A process for splitting up a Joint Reserve between the member First Nations
• The process for making amendments to the agreement itself
• A certificate of independent legal advice from the lawyer representing each member First Nation

All lands that are set apart for the use and benefit of member First Nations as subsequent Joint Reserves and additions to existing Joint Reserves will be subject to the member First Nations' existing co-management or joint management agreements.

Note: for Joint Reserves that are administered under the Indian Act, in the event of a conflict or inconsistency between the Indian Act and the agreement, the Indian Act will prevail to the extent of the conflict or inconsistency.

Member First Nations will need to consult their respective communities and obtain their consent to form a Joint Reserve with one another. The member First Nations may use their own respective and established community consultation and consent processes or they may design a new process together. Community votes may be part of the process if desired by the member First Nations.

The member First Nations will provide a BCR to Canada confirming that they obtained community consent for the Joint Reserve proposal, and that they have a fully executed and written agreement between the member First Nations, noting that Canada will not need to review the agreement(s).