Asking the question is more than 99% of people would think to do. I'd probably not worry about it, but see what the exceptions are. In the Calgary case, you can build to the property line if the siding is maintenance free and the interior is fire rated drywall, though I'm not even sure if that is required for a shed.
I'll be rebuilding mine next year close to the fence. I'd like to get as close as possible so will need to take a look then. Will go with vinyl siding, and if I have to put up a sheet of drywall inside for $20, I'll do that too.
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