Canada's public policy underwent significant changes through the course of the twentieth century - from the creation of a protected national market and the centring of a manufacturing base in south-western Ontario, to the institution of redistributive policies that supported less prosperous individuals and regions. The world continues to change at a rapid rate, and so must Canada along with it. The country faces a set of important new realities in the twenty-first century. Prosperity has shifted from manufacturing regions to provinces with oil and gas. Services and natural resources have emerged as the primary drivers of national economic growth and regional inequality. Globalization and free trade mean that Canada is competing with countries around the world for investment and human capital. To what extent does the policy architecture of the twentieth century need to be modified to reflect these shifts within the federation? What are the implications for Ontario, and for a federation that has historically relied on its largest province to lead the way? Canada: The State of Federation 2010 makes bold strides towards answering these questions.