Ontario investing $700M to upgrade, expand water systems

Key Takeaways:

• The Ontario government is investing an additional $700 million to upgrade and expand aging water and wastewater infrastructure for 127 municipalities and First Nations through the Health and Safety Water Stream of the Municipal Housing Infrastructure Program.
• The funding is intended to improve access to safe drinking water, support housing development, create jobs, and help communities better withstand extreme weather events while enabling growth.
• Significant regional investments include up to $78.4 million in Simcoe North for multiple water system projects, and the funding is part of a broader $220 billion provincial capital plan that the government says has already enabled about 800,000 new homes.

The Whole Story:

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. The funding flows through the Health and Safety Water Stream (HSWS), a component of the province’s $4 billion Municipal Housing Infrastructure Program (MHIP).

The HSWS now totals $875 million of the total MHIP allocation. The investment will support access to safe drinking water, housing development, job creation and protection for communities against extreme weather events.

“As we continue to navigate economic uncertainty and unwarranted U.S. tariffs, our government is protecting Ontario by investing in critical infrastructure that drives growth, creates jobs and strengthens communities,” said Todd McCarthy, Acting Minister of Infrastructure, in a news release. “Through our historic $4 billion Municipal Housing Infrastructure Program, we are giving municipalities and First Nations the tools they need to get shovels in the ground and build stronger communities.”

The announcement was made in Orillia alongside Jill Dunlop, Minister of Emergency Preparedness and Simcoe North MPP.

In the Simcoe North region, the government is investing up to $78.4 million in HSWS funding to support five water system projects. These include upgrades to Orillia’s Fittons Road West Sewage Pumping Station, designed to prevent sewage backups and support future growth; $30 million for Ramara; $29.5 million for Tay Township; $11.5 million for Penetanguishene; and $4.16 million for Tiny Township. This funding supplements more than $55 million previously provided to Simcoe North municipalities through the Housing-Enabling Water Systems Fund.

“This increased funding, especially through the Health and Safety Water Stream, will strengthen critical water and wastewater infrastructure, protect public health and support housing in these communities,” said Dunlop in the release. “These improvements will support local jobs, enable responsible development and ensure families have access to safe, reliable services now and for generations to come.”

Additional recipients of the $700 million will be announced locally in the coming weeks.

The investment is part of the government’s $220 billion capital plan to build more transit, highways, hospitals, schools and housing-enabling infrastructure. Since its launch in 2024, the MHIP has enabled about 800,000 additional new homes, the government said.