Ontario Investing in Critical Water Infrastructure to Protect Communities and Support Housing

Funding will support jobs, unlock new housing opportunities and economic growth in 127 communities across the province

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 comes from the province’s Municipal Housing Infrastructure Program (MHIP), which was increased to a total of $4 billion last year to support the province’s goal of getting more shovels in the ground and homes built across Ontario. The funding will flow to recipients through MHIP’s Health and Safety Water Stream (HSWS), which now totals $875 million of the total $4 billion MHIP. Funding will support access to safe drinking water, housing, job creation and protection for communities in the event of 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. “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. Our investments will deliver more homes, modernize aging water systems and lay the foundation for long-term prosperity across Ontario.”

Minister McCarthy made the announcement in Orillia alongside Minister of Emergency Preparedness and Simcoe North MPP Jill Dunlop. Across Simcoe North, the government is investing up to $78.4 million in HSWS funding to support five water system projects, including upgrades to Orillia’s Fittons Road West Sewage Pumping Station, which will help prevent sewage backups and support future growth. Other HSWS projects in Simcoe North include $30 million for Ramara, $29.5 million for Tay Township, $11.5 million for Penetanguishene and $4.16 million for Tiny Township. This funding is in addition to more than $55 million previously provided to Simcoe North municipalities through the Housing-Enabling Water Systems Fund (HEWSF).

“Through the Municipal Housing Infrastructure Program, our government is delivering real investments that help communities grow safely and sustainably. 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 of Simcoe North,” said MPP Dunlop. “These improvements will support local jobs, enable responsible development and ensure families have access to safe, reliable services now and for generations to come. I am proud to be part of a government that identifies and supports important infrastructure needs for so many communities across Ontario.”

Other recipients of the $700 million in additional funding through HSWS will be announced locally in the coming weeks. Investing in local infrastructure is part of the government’s more than $220 billion capital plan to protect Ontario by building more transit, highways, hospitals, schools and housing-enabling infrastructure. This is the most ambitious capital plan in Canadian history.

Quick Facts

• In August 2025, Ontario increased the MHIP to $4 billion to speed up construction of homes and core infrastructure, such as roads and water systems. Since its launch in 2024, the MHIP has made about 800,000 more new homes possible.
• The MHIP is comprised of four funding streams: the Housing-Enabling Water Systems Fund (HEWSF), the Housing-Enabling Core Servicing (HECS) Stream, the Health and Safety Water Stream (HSWS) and the Agriculture and Irrigation Stream.
• In January 2025, Ontario announced an initial investment of $175 million to launch the HSWS.
• The Housing-Enabling Water Infrastructure lending stream under Infrastructure Ontario’s Loan Program is providing up to $1 billion in loans to help municipalities build water infrastructure that supports the construction of more homes.