Municipalities have long been regarded as creatures of the provinces, political bodies subordinated to the authority of provincial governments. However, recent political changes suggest that they are now seen as a third order of government within the Canadian Federation. These include the formal recognition of municipalities as a level of government by the provinces and multilevel governance practices. In this article, I argue that these changes contribute to the federalization of relations between municipalities and higher governments. While they may undermine the effectiveness of urban governance, these developments can also strengthen the democratic foundations of the Constitution.