Development Agreements

What Is A Development Agreement?

A development agreement is a legal document between a municipality and developer which sets out the responsibilities of each party in regard to a particular development within RM of Hanover. Development agreements are normally associated with subdivisions, but can also be part of a zoning amendment, Conditional Use or Variance.

Why Are Development Agreements Required?

Development agreements are required to clearly identify the responsibilities of the municipality and the developer to ensure that the proposed development is safe, efficient, compatible with surrounding land uses, a benefit to the community and generally consistent with the intent of the RM of Hanover Development Plan. Development agreements are registered as caveats against the affected property and bind the owner of the land and future purchasers to the agreement conditions.

Types of Agreements

This is a general guide that briefly explains development agreements, why they are needed, and where you can get more information.  It is not meant to replace by-laws or other legal documents.

Development Agreements Dealing With Subdivisions

Development agreements with subdivision applications usually set out specifications dealing with storm and sanitary sewers, water mains, street lighting, roadway requirements, drainage, and lot grading. They also can deal with the dedication of land for roadways, municipal service systems, and undevelopable building areas (e.g., swamp, ravine). Prior to development proceeding, RM of Hanover requires the developer to provide them with a letter of credit to protect the municipality if work is not properly undertaken or if the developer runs into financial difficulties.

Development Agreements Dealing With Zoning Amendments

Municipalities can enter into agreements with landowners as part of a zoning by-law amendment. These agreements can deal with the use of land or buildings, the timing of construction, the location and design of the building, traffic and parking control, landscaping, the construction of roads, sewage, water, etc. (or the money in lieu of), and in certain instances the dedication of land. This agreement can also be registered as a caveat to the title of the affected lot.

Development Agreements Dealing With Conditional Use / Variance

The RM of Hanover can require a landowner to enter into a development agreement with the municipality as a condition to approval of a Conditional Use or Variance. This agreement can deal with matters such as servicing requirements, the payment of money to connect onto municipal services and compliance with municipal specifications.

Development Agreement Considerations

Some typical items that are dealt with in a development agreement are, but not limited to:

  • Installation of services (e.g., road surface, street lighting, land drainage, traffic controls, public reserves, sewer & water, public facilities etc.)
  • Public (municipal) and developer costs
  • Municipal services (e.g., snow removal, garbage pickup etc.)
  • Ownership of municipal services
  • Letter of credit
  • Indemnification
  • Arbitration
  • Building restrictions
  • Legal description
  • Engineering schedules


All costs incurred by the municipality in the preparation and administration of the development agreement are the responsibility of the developer.

The RM of Hanover charges $1,250 +GST to prepare a development agreement. This fee does not include any costs incurred to register the agreement on title. 


Contact the RM of Hanover Planning Department at 204-346-7126 or Submit a question or request.