In the late 1960s, the Government of Quebec saw increasing problems arising in the governance of the urban areas of Quebec City, Montreal and Hull because of the system of municipal organization in effect at that time:[1] The current remedies involving intermunicipal agreements, amalgamation and annexation were seen as being inadequate,[2] as they were discretionary and piecemeal in nature.
[4] A particular concern in the Quebec area was the large presence of government agencies whose exemption from property taxes created a significant revenue shortfall to the municipalities, together with the need to strengthen intermunicipal cooperation to deal with the situation.
"[6] The move was supported by all MLAs in the Quebec area, including former Premier Jean Lesage and former Créditiste member Gaston Tremblay.
[7] Officials at the local level had already begun discussions as early as 1965 on possible ways to establish joint activities, but nothing concrete had emerged by the time the Province unveiled its draft bill in June 1969.
[7] Although Quebec City itself was favourable to the provincial proposal, there was significant opposition from the other municipalities in the area,[8] but such tension tended to fade away over the five years following the CUQ's creation.