Ontario Premier Doug Ford intends to break apart Peel Region within three years, CBC Toronto has learned from a source not authorized to speak publicly on the matter.
The news was first reported Wednesday evening by The Toronto Star.
According to the source, there will be questions around costs.
Another source told CBC Toronto that the decision was approved by cabinet on Wednesday.
Peel Region is made up of Mississauga, Brampton and Caledon. The region is responsible for services such as paramedics, health programs and recycling in the three municipalities.
Minister of Municipal Affairs Steve Clark is set to introduce legislation Thursday "outlining steps the government is taking to ensure municipalities in the Region of Peel are positioned to support future growth."
Clark is also scheduled to hold a news conference alongside Mississauga Mayor Bonnie Crombie and Brampton Mayor Patrick Brown at 1:30 p.m. ET.
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Ford said last week that he believed Mississauga and Brampton are large cities that can stand alone. The premier added that the goal of any changes would be to ensure the municipalities have equal or better services than they do now.
"If one region is taking more money than the other, we're going to have to make sure that's split equally," he said last week as he hinted a decision on Peel Region was coming "very soon."
"Mississauga, for the most part, almost, is built out. There's still room for additional building there, but Brampton still has an opportunity to continue to grow," Ford said.
"They are not going to be shafted by Mississauga, or anyone else — I'm going to make sure they're always whole and they're always protected, all three regions."
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Meanwhile, Crombie has been pushing for her city to become independent, saying the move will save her municipality $1 billion over 10 years and make it more efficient.
Brown has said he would welcome efforts to remove duplication, but believes Mississauga would owe Brampton under any separation because of the infrastructure residents have funded for Mississauga.
Municipal Affairs and Housing Minister Steve Clark announced in November that he would appoint facilitators to assess six regional governments — including Peel Region — and look at the best mix of roles between upper-tier and lower-tier municipalities with an eye to expanding "strong mayor" powers beyond Toronto and Ottawa.