Provincial funding targets aging systems, housing growth and climate resilience
Municipal projects in St. Catharines, Welland, Fort Erie and Niagara Falls to receive support
THOROLD, Ont. — The Ontario government is investing nearly $44 million to rehabilitate aging water, wastewater and stormwater infrastructure across the Niagara Region, as part of a broader provincial strategy aimed at supporting housing development, protecting public health and strengthening local economies.
The funding, announced Wednesday through the Municipal Housing Infrastructure Program’s Health and Safety Water Stream (MHIP-HSWS), will support critical upgrades in four Niagara municipalities. Provincial officials say the projects are intended to improve access to safe drinking water, modernize aging infrastructure and help communities better withstand extreme weather events.
Ontario Acting Minister of Infrastructure Todd McCarthy said the investment comes at a time when municipalities continue to face economic and infrastructure pressures tied to rapid population growth and housing demand.
“As we continue to navigate economic uncertainty, 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 communities, including those across the Niagara Region, the help they need to deliver more homes, modernize aging water systems and lay the foundation for long-term prosperity.”
Funding distributed across four municipalities
Wastewater, stormwater and drinking water projects among priorities
The Regional Municipality of Niagara will receive the largest portion of the funding, with $24.5 million allocated toward primary treatment upgrades at the Niagara Falls Wastewater Treatment Plant. Provincial officials said the upgrades are expected to improve wastewater management capacity and address long-term operational challenges.
The City of Welland is receiving $10.7 million to renew sanitary, water and storm infrastructure in the Broadway area, while the Town of Fort Erie will receive $4.5 million to replace an aging watermain along Colony Road, Windmill Point Lane and Staniland Park Road.
Meanwhile, the City of St. Catharines has been allocated $3.8 million for the rehabilitation of the Martindale Pond Weir, a project municipal officials say is essential for flood protection and maintaining water levels in the area.
“Investments in core water infrastructure are critical to keeping our communities safe and resilient. The rehabilitation of the Martindale Pond Weir will help protect surrounding areas, maintain water levels in the pond and preserve an important part of the landscape of St. Catharines for years to come. We appreciate the Ontario government’s partnership in supporting infrastructure that strengthens communities across Niagara,” said Mat Siscoe, Mayor of the City of St. Catharines.
Infrastructure investments linked to housing and economic growth
Province says projects will help create jobs and support long-term development
The Ontario government said the Niagara funding forms part of a broader provincial infrastructure strategy tied to housing construction and economic growth. Since 2024, Ontario has invested more than $272.5 million in Niagara Region through programs including MHIP, the Ontario Community Infrastructure Fund and the Building Faster Fund.
Sam Oosterhoff, MPP for Niagara West, described the latest announcement as one of the largest infrastructure commitments in the region’s history.
“By upgrading and expanding critical water infrastructure in Niagara, our government is helping to ensure safe and reliable services across our region, while at the same time creating jobs and driving economic growth,” said Oosterhoff. “This latest investment of nearly $44 million in Niagara is part of $272.5 million in provincial infrastructure investments across our local communities since 2024, representing one of the largest infrastructure commitments in Niagara’s history, supporting families and businesses for the future.”
Municipal leaders across the region said the projects will support future residential development while helping maintain reliable public services.
“On behalf of the City of Welland, I want to thank the provincial government for this significant investment in our community. The $10.7 million in funding for water, sanitary and storm infrastructure renewal in the Broadway area will help us modernize essential systems, support new housing opportunities and ensure our residents continue to have access to safe and reliable services. As Welland continues to grow, partnerships like this are vital to building strong neighbourhoods and supporting the long-term prosperity of our city,” said Frank Campion, Mayor of the City of Welland.
Brian Grant, Acting Niagara Regional Chair, said the investment also strengthens the region’s economic outlook.
“This investment strengthens the foundations of our communities. It means safer, more reliable drinking water for residents, modern infrastructure that can withstand extreme weather and the capacity our municipalities need to grow. But just as importantly, this is an investment in Niagara’s economic future.”
Province expands Municipal Housing Infrastructure Program
Ontario says funding program has supported nearly 800,000 homes since launch
Ontario first launched the MHIP-HSWS in January 2025 with an initial investment of $175 million. The province later added another $700 million in January 2026, bringing the total investment in the stream to $875 million.
In August 2025, the province expanded the broader Municipal Housing Infrastructure Program to $4 billion to accelerate the construction of homes and core infrastructure, including roads and water systems.
According to the province, the MHIP has supported approximately 800,000 new homes since its launch in 2024 while also rehabilitating water and stormwater infrastructure serving roughly 375,000 existing homes.
Local officials said the latest funding announcement reflects the growing need for infrastructure renewal as communities continue to expand.
“We are grateful for the Ontario government’s continued investment in Niagara Falls and the region’s wastewater infrastructure. This funding is critical in extending the life and addressing odour issues at our Stanley Avenue Wastewater Treatment Plant,” said Jim Diodati, Mayor of the City of Niagara Falls.
Fort Erie Mayor Wayne Redekop added that maintaining reliable infrastructure remains essential to the town’s long-term growth strategy.
“The Town of Fort Erie expresses its appreciation to the Ontario government for this important investment. This funding will enable critical upgrades to our local water infrastructure, essential for delivering safe, reliable services today while preparing our community for continued growth tomorrow.”