Western Economic Diversification Canada (WD) was established in 1987 to help lessen the West's (British Columbia, Alberta, Saskatchewan and Manitoba) economic dependence on natural resources.

In May 1988, Bill C-113, an Act to promote the development and diversification of the economy of Western Canada, to formally establish the Department of Western Economic Diversification and to make consequential amendments to other Acts was passed by an Act of Parliament.

Since 1995, WD has directed its core resources towards working in collaboration with many partners including all levels of government, universities, financial institutions, the private sector, and the not-for-profit sector. Key partners in the not-for-profit sector include members of the Western Canada Business Service Network (WCBSN), which is comprised of over 100 points of service, including: Community Futures Development Corporations (CFDCs), offices of the Women's Enterprise Initiative (WEIs), Francophone Economic Development Organizations (FEDOs) and Canada Business Service Centres (CBSCs).