The Region of Waterloo and the people representing residents of a large homeless encampment in Kitchener will be heading back to court in the new year. Regional officials confirmed Thursday the two sides were unable to come to an agreement about the future of 100 Victoria Street North. The area is at the heart of ongoing legal battle. The region has tried to enact a site-specific bylaw that would clear the land so crews could begin work on a new transit hub. The lawyers representing the encampment residents opposed the move, and temporarily halted the region’s plans in August by seeking a court injunction. It meant that the region could not prohibit entry to the encampment, or put up fences, barriers or dispose of personal belongings of encampment residents. A Superior Court hearing was originally scheduled to start on Nov. 19 to determine the bylaw’s constitutionality. That hearing has been pushed back until February 2026. In October, the region said both sides had agreed to mediation. The breakdown of those discussions leaves the issue once again in the hands of the Superior Court. “[Waterloo Region Community Legal Services] is disappointed with the outcome of the mediation,” said a statement from the organization representing encampment residents. “Extensive resources will now be spent by the region to litigate against people experiencing homelessness instead of trying to resolve the issue.”Meantime, the region maintains its goal is to find other housing arrangements for the people who had been living at the encampment since April, when the site-specific bylaw was approved by council. “Region staff and partners continue to support individuals at the 100 Victoria Street site,” a statement from the region said. “This includes working with them on their individual housing plans, connecting them to services and coordinating the regular cleaning and maintenance of the site.” As of Dec. 1, the region said only four of the original residents remain at the site. For the time being, they can continue living there, pending the outcome of the legal challenge.