24 regions in Ontario including Chatham-Kent will move to Stage 3 on Friday.
However, a number of municipalities are exempt such as Hamilton, Toronto, York, Peel, Durham, Niagara and Windsor-Essex.
The government says more time is needed to assess those areas's readiness to move to the next stage.
Premier Doug Ford says Stage 3 is an important step towards returning to normal as nearly all businesses will be allowed to re-open including dine-in restaurants, bars, gyms, live shows, casinos, movie theatres and live sports.
Amusement parks and water parks must remain closed.
Indoor gathering limits will increase to a maximum of 50 people, while outdoor gathering limits will increase to a maximum of 100 people.
The province says it will still require people to practice physical distancing with anyone who is not in their 10-person social circle.