Funding targets upgrades in 127 municipalities and First Nations communities

ORILLIA — The Ontario government says it is committing an additional $700 million to help 127 municipalities and First Nations communities repair, upgrade, and expand aging water and wastewater infrastructure—work the province says will improve access to safe drinking water while also helping unlock new housing and support local jobs.

The funding will flow through the Municipal Housing Infrastructure Program (MHIP), specifically its Health and Safety Water Stream (HSWS). Ontario increased MHIP to a $4 billion total last year, positioning water and core servicing as a key step in accelerating housing construction across the province.

New water stream funding now totals $875 million

Ontario says the Health and Safety Water Stream now totals $875 million within the broader MHIP envelope. The province says the investments are intended to strengthen systems that protect public health and help communities respond to extreme weather and other disruptions.

Acting Infrastructure Minister Todd McCarthy said the funding is aimed at modernizing critical systems while supporting growth and employment across Ontario.

Announcement made in Orillia with Simcoe North project highlights

McCarthy made the announcement in Orillia alongside Jill Dunlop, MPP for Simcoe North and Minister of Emergency Preparedness.

In Simcoe North, Ontario says it is investing up to $78.4 million through HSWS for five projects, including upgrades to Orillia’s Fittons Road West Sewage Pumping Station, intended to help prevent sewage backups and support future growth. The province also cited projects with allocations of $30 million (Ramara), $29.5 million (Tay Township), $11.5 million (Penetanguishene), and $4.16 million (Tiny Township).

More communities to be announced in the coming weeks

Ontario says additional HSWS recipients from the new $700 million will be announced locally over the coming weeks.

The province frames the spending as part of its broader capital plan—valued at more than $220 billion—covering transportation, health care, schools, and housing-enabling infrastructure.

Why it matters for Northwestern Ontario

While the announcement was made in Orillia, the funding is provincewide—and the province says First Nations communities are included among recipients. For Northwestern Ontario, water and wastewater capacity is often a make-or-break factor for new housing, industrial expansion, and resilience during extreme weather events, particularly in smaller municipalities and remote communities.

Summary: Ontario adds $700M for water, wastewater upgrades to support housing in 127 communities.