The twin cities of Kitchener-Waterloo are located in central southwestern Ontario, 110 km southwest of Toronto. Each retains its own political culture within a common historical framework and with similar socio-economic developments.

Kitchener, larger of the 2 (pop 178 420, 1996c), was the county seat (1853) and judicial and financial centre of Waterloo County (1853-1973), and it continues to have a predominant influence in the Regional Municipality of Waterloo (pop 405 435, 1996c), formed in 1973 by combining several communities and cities, including WATERLOO (pop 77 949, 1996c) and CAMBRIDGE.

Economy
The original economic development of Kitchener and Waterloo was built around the business and artisanal skills of its German population. The communities became strongly identified with the automotive parts industry with companies supplying components to all of the major automobile manufacturing companies. Budd Canada and Uniroyal Goodrich remain as major employers in the manufacturing sector.
Furniture and leather companies flourished in the early part of the century but have since declined significantly, leaving only Krug Furniture with a national presence. At the close of the 20th century, many long-standing industries ceased operations such as the Seagram distillery (1857) and Labatt's brewery (1870s).
The footwear industry, once prominent in Kitchener, also declined, although Kaufman Rubber has flourished and remains a large community employer.
Dare Foods and Electrohome Industries continue to be important to the manufacturing base. Insurance companies have always played an important role in the economic life of the 2 cities and continue to do so with many firms having corporate headquarters in Waterloo.
The largest employer is the University of Waterloo, which has had a profound impact on the economic and cultural life of the 2 cities, especially for Waterloo. Wilfrid Laurier University and Conestoga College also rank as large employers.
In 1991 26% of the labour force was engaged in manufacturing while 49% was in the service and trade industries.

Population
The prevalent German language and culture of Kitchener and Waterloo at the turn of the century made the cities unique in Ontario. Immigration from the fatherland ceased with the outbreak of war in 1914 and by 1941 less than half the population saw itself as German. However, new German refugees who fled or were expelled from eastern Europe (Romania, Yugoslavia, Poland and the former USSR) reached Kitchener and Waterloo after World War II. By the 1970s the cities were once more extolling their German identity through an annual Oktoberfest, which has become a national tourist attraction. As many as 600 000 attend the week-long celebration, while the Oktoberfest parade is broadcast on national television. Other ethnic groups - POLES, GREEKS, PORTUGUESE, ITALIANS, CHINESE, WEST INDIANS and British - have created a new population mixture making the 2 cities, like the nation, truly multicultural.