The organization is the successor to the Toronto Harbour Commission (THC) which had managed Toronto Harbour since 1911, paid for through government transfers, harbour and airport fees. As part of a Canada-wide plan of the Government of Canada to turn government commissions into self-sufficient agencies, the TPA was set up in 1999 to take over the harbour and airport functions of the THC. This was done against the wishes of the City of Toronto, which had been transferring THC harbour lands to City agencies for redevelopment. The City had planned to take over the harbour administration as a direct city function.