The City of Winnipeg, several surrounding municipalities and the Metropolitan Corporation of Greater Winnipeg were subject to a municipal amalgamation on January 1, 1972 that created a unicity or unified city. The creation of the current City of Winnipeg as a unicity was an ambitious experiment in local government reform. Until that point, the greater Winnipeg area comprised 12 municipalities under a single metropolitan government, in a "two-tier" system.
The City of Winnipeg Act amalgamated the rural municipalities of Charleswood, Fort Garry, North Kildonan, and Old Kildonan, the Town of Tuxedo, the cities of East Kildonan, West Kildonan, St. Vital, Transcona, St. Boniface, and St. James-Assiniboia, the City of Winnipeg, and the Metropolitan Corporation of Greater Winnipeg into one city. The unicity system replaced the two-tier metropolitan system established in 1960.
The unicity reforms were originally proposed by the New Democratic Party (NDP) government elected in 1969. The NDP's goals included greater citizen participation in government, "financial equity, the elimination of conflict and stalemate between the Metro and municipal levels, greater efficiency in the delivery of services, and a greater degree of involvement by the public at large in local politics". However, the unicity reforms as actually enacted were far from those laid out in the NDP's original "White Paper" on the subject (Proposals for Urban Reorganization in the Greater Winnipeg Area, December 1970).
While the unicity amalgamation has been widely regarded as a failure in that it did not achieve many of its lofty goals, it did have some success in equalizing property tax rates across the city, eliminating the suburban "property tax havens" which had coupled low tax rates with a high level of services provided by the city at the cost of higher tax rates overall.
A government review in 1986 concluded "that the unicity structure, with its many suburban councillors and large tax base, facilitated the building of suburban infrastructure, to the detriment of inner-city investment." This may have been inevitable, since the incorporation of so many large suburban areas into a unicity naturally increased the political clout of the suburbs at the expense of the old city.