Ontario Invests $700 Million in Water Infrastructure Upgrades

The Ontario government is investing an additional $700 million to help 127 municipalities and First Nations communities upgrade and expand aging water infrastructure across the province. This funding comes from the Municipal Housing Infrastructure Program (MHIP), which was increased to $4 billion last year to accelerate home construction and support community development. The new investment will be delivered through MHIP’s Health and Safety Water Stream (HSWS), which now totals $875 million, and is designed to ensure access to safe drinking water, protect communities from extreme weather, and support housing and job creation. Acting Minister of Infrastructure Todd McCarthy highlighted that the investment strengthens communities, drives economic growth, and modernizes water systems. The announcement was made in Orillia alongside Minister of Emergency Preparedness and Simcoe North MPP Jill Dunlop. Across Simcoe North, up to $78.4 million in HSWS funding will support five water system projects, including upgrades to Orillia’s Fittons Road West Sewage Pumping Station, which will prevent sewage backups and support future growth. Additional funding will support projects in Ramara, Tay Township, Penetanguishene, and Tiny Township. The Health and Safety Water Stream aims to strengthen critical water and wastewater infrastructure, protect public health, and enable responsible community development. The funding also supports local job creation and ensures families have access to safe and reliable services. Ontario’s government emphasizes that these investments are crucial for enabling sustainable growth and long-term prosperity. Other recipients of the $700 million investment through HSWS will be announced in the coming weeks. This funding forms part of Ontario’s broader capital plan, which exceeds $220 billion and includes investments in transit, highways, hospitals, schools, and housing-enabling infrastructure—the most ambitious capital plan in Canadian history. Since its inception, MHIP has supported approximately 800,000 new homes and includes four funding streams: the Housing-Enabling Water Systems Fund, the Housing-Enabling Core Servicing Stream, the Health and Safety Water Stream, and the Agriculture and Irrigation Stream. Ontario’s investment strategy also includes the Housing-Enabling Water Infrastructure lending stream under Infrastructure Ontario, which provides up to $1 billion in loans for municipal water infrastructure projects. Government and municipal leaders emphasized the importance of this funding for public health, community growth, and housing development. They highlighted that safe, reliable water infrastructure supports economic growth, strengthens climate resilience, safeguards natural resources, and ensures sustainable development for current and future residents across Ontario.