drum118
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The Toronto Transportation Commission (TTC) was created by the province of Ontario in 1921. If the province created the TTC, then it can also run it.
See The TTC's Past, Transit's Future from the torontoist.com at this link. It was published back in July 31, 2007.
Before that, there was the Ontario Railway Act, that looked after Local Transit to deal with various issues raised by both the public and Cities when transit was run by PPP.