Final answer:
The evolution of the Canadian urban system began with the mercantile phase, which set the stage for the industrial phase and subsequent urban growth.
Step-by-step explanation:
The first stage associated with the evolution of the Canadian urban system is generally considered to be the mercantile phase, which preceded the widespread industrialization that occurred in the mid-19th century. This early phase was characterized by the trade and exchange of goods, laying the foundation for future urban growth and industrial development. Canadian urbanization followed the mercantile phase with the industrial phase marked by the establishment and growth of industries in major cities such as Toronto and Montreal, mass production of steel, extraction of natural resources, and urban population growth due to the rural-to-urban shift.