Funding to support municipalities and First Nations with local water innovation and extreme weather preparedness
Province launches new support for sustainable infrastructure and water quality projects
The Ontario government is investing $1.5 million into a new Local Blue Economy Growth Fund Program aimed at helping municipalities and First Nations across the Great Lakes and St. Lawrence River Basin improve water quality, strengthen climate resilience and support sustainable economic growth.
The funding, announced Thursday in Hamilton by Environment, Conservation and Parks Minister Todd McCarthy, will be administered through the Great Lakes and St. Lawrence River Cities Initiative. The program will provide small grants to Ontario member municipalities and First Nations for projects focused on stormwater management, pollution reduction and innovative environmental infrastructure.
The announcement was made during the Cities Initiative’s 2026 Annual Conference.
“Ontario is proud to support the Cities Initiative to implement local, high-impact projects that will protect vital resources and improve community resilience to extreme weather,” said Minister McCarthy. “This investment empowers municipalities and First Nations to put innovative water solutions in place, safeguarding their communities against major flooding events and ensuring these vital waterways remain healthy for generations to come.”
Program targets water quality and community resilience
The Local Blue Economy Growth Fund Program is designed to help communities implement practical environmental projects that can reduce pollution entering waterways and improve local climate preparedness.
Eligible initiatives include small-scale stormwater management technologies that capture plastics and other harmful pollutants before they enter storm drains, as well as green infrastructure projects such as rain gardens and buffer strips intended to improve water filtration and shoreline protection.
The province said the program is intended to complement larger infrastructure investments already underway while encouraging municipalities and First Nations to develop locally tailored environmental solutions.
Ontario officials framed the investment as part of a broader strategy to strengthen environmental protection while supporting economic development in one of North America’s most important freshwater regions.
Great Lakes region remains critical economic driver
The Great Lakes–St. Lawrence region remains one of the most significant economic corridors in Canada, supporting nearly 40 per cent of the country’s economic activity and approximately half of its manufacturing sector, according to provincial figures.
The freshwater system also represents a critical environmental resource. The Great Lakes contain nearly 20 per cent of the planet’s fresh surface water supply, making long-term water protection a major policy priority for governments and local communities.
From 2018 through 2025, Ontario invested more than $83 million into nearly 680 projects through the Great Lakes Basin Initiative. Those projects included efforts to reduce Lake Erie algal blooms, improve watersheds and beaches in Lake Huron, remediate legacy Areas of Concern and support the province’s broader Great Lakes Strategy.
The government said the new fund continues Ontario’s focus on made-in-Ontario environmental solutions that support sustainable growth while helping communities adapt to increasingly severe weather conditions.
Municipal leaders welcome provincial investment
Local officials and municipal leaders said the funding will provide communities with additional tools to address environmental challenges while supporting economic development tied to the Great Lakes region.
“Hamilton’s waterfront is an economic and environmental asset that our city depends on. This investment gives communities like ours the tools to act locally — improving stormwater management, protecting water quality and building the resilience we need to keep our shorelines healthy for decades to come.”
- Neil Lumsden, MPP for Hamilton East – Stoney Creek
Municipal representatives involved with the Great Lakes and St. Lawrence Cities Initiative also emphasized the role of environmental innovation in supporting Ontario’s growing water technology sector.
“The Local Blue Economy Growth Fund is a meaningful investment in Ontario communities that will help improve water quality while supporting innovation across Ontario’s water technology sector. By making it easier for municipalities and First Nations communities to adopt emerging stormwater and wastewater solutions, this fund demonstrates how economic growth and environmental protection can go hand in hand, delivering real benefits for residents while helping us build a strong Fresh Coast Economic Corridor.”
- Mat Siscoe, Mayor of St. Catharines and Co-Chair, Great Lakes and St. Lawrence Cities Initiative
Focus on long-term sustainability
The investment comes as municipalities across Ontario continue to face mounting infrastructure pressures linked to urban growth, aging water systems and increasingly frequent extreme weather events.
Provincial officials said programs like the Local Blue Economy Growth Fund are intended to help communities address environmental risks earlier through preventative infrastructure and localized innovation.
The government added that supporting local environmental projects can also help strengthen public safety, preserve freshwater resources and position Ontario communities for long-term sustainable growth tied to the Great Lakes economy.