The purpose of this research is to examine, through a review of various sources of sport literature, debates in the house of Commons, and government publications, the political, social, and sports background, as well as the contents of the "Fitness and Amateur Sport Act"(C-131), introduced in Canada in 1961. I discuss three factors, which explain why C-131 was enacted. 1) A clear need existed to promote competitive sports and maintain a certain level of national sport in the international arena. 2) Canadian public sports facilities, which would answer to the public’s demand for venues in which they can participate in leisure sports, were greatly lacking. 3) The government of Canada wished to encourage and assist Canadians in increasing their level of physical activity in sport. At the same time, the federal government wished to administer and control the provincial governments and territories with a conditional grant towards achieving this objective. In conclusion, it is evident that the reason why C-131 was enacted in 1961 was to overcome certain political, social, and, sports problems in Canada.