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Note that the parking lot behind the old Canada Post building (off Regina) is no longer available; however, the lot kitty-corner to it (off Bridgeport at Regina) is still available and offers free daytime parking for 2 hours.
46 King Street North Waterloo, Ontario N2J 2W8 Canada 6 Princess Street West Waterloo, Ontario N2L 2X8 Canada
Another solution.