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In July of 2004, a city with population about 116,000 in south Ontario experienced severe flooding, which caused a flood damages in excess of $ 100 million in direct physical damages to private and public property.A flood reduction master plan study was conducted in order to achieve higher level of protection over the long term.This study is designed to address two types of flooding situations which have occurred in the past or may occur in the future.The framework of a Municipal Class Environmental Assessment was applied during the study.This is appropriate not only because it provides a basis for approvals for any specific recommended projects but also because it addresses the problem in a multi-objective, ecosystem based way.This provides opportunities to not only avoid potential environmental impacts but to develop projects which integrate environmental restoration and enhancement.Examples could include the use of "natural channel design" where channel improvements are recommended, the provision of fish passage where culvert improvements/enlargements are required and use of artificial wetlands to provide runoff storage.This paper described a procedure to do the flood reduction master plan in Canada.