An intermunicipal agreement is a formal contract between two or more municipalities to share services, facilities, or costs. These agreements allow communities to cooperate on transit systems, water supply, waste management, emergency services, or recreation facilities. By pooling resources, municipalities achieve cost savings and service improvements that would be impossible independently. Provincial legislation governs how these agreements are created and enforced. Intermunicipal agreements can range from simple cost-sharing arrangements to complex governance structures with joint boards overseeing shared operations.