Canadian Federalism is a system of government in which power is divided between the national government and provincial governments. This structure allows both levels of government to operate independently in certain areas, such as education and health care, while also collaborating on issues like transportation and environmental protection. In Canada, the Constitution Act of 1867 outlines the distribution of powers, establishing the roles of the Federal Government and the Provincial Governments. This division helps accommodate the diverse needs of Canada's regions, promoting local governance while maintaining a unified national framework.