EDMONTON, Canada - The Canadian government has agreed to let an Edmonton-based adult film producer start an adult film channel, half the content of which will feature Canadian content.

Edmonton-based Real Productions received approval Wednesday to operate a digital cable channel called Northern Peaks, which is billed as "Canada's first adult video channel programming significant Canadian content."

"There seems to be quite a market for Canadian adult content right now and of course there isn't a lot of supply," Real productions owner Shaun Donnelly said.

Real Productions says it owns the largest library of Canadian-made pornography at more than 200 titles.

According to the conditions of the licence, Northern Peaks must devote 50 percent of its broadcast time to Canadian productions.

A CRTC spokesperson said yesterday that to the best of his knowledge, it is the highest Canadian content level ever for an adult channel.

Donnelly said he was required to offer as little as 15 percent Canadian content to appease regulators. But because he wants "to legitimately be Canada's adult channel," he started at half Canadian.

Proposed series in the application to the CRTC include one shot entirely on location at a small adult video store in Kamloops, B.C., and one in which "Canada's sexiest thirtysomethings show off their skills in a series that proves Canada is cougar country."

Donnelly produces pornography for a variety of international media in Western Canada. He created "The Boy Nexxt Door" for Playboy TV and "Make Me a Porn Star" for British television.