Investment Aims to Unlock Housing, Support Jobs and Strengthen Local Economies
KENILWORTH, Ont. — The Ontario government has announced nearly $29 million in funding to expand and rehabilitate water infrastructure across Perth and Wellington counties, a move aimed at supporting housing development, protecting existing homes and driving economic growth in Southwestern Ontario.
The funding, delivered through the Municipal Housing Infrastructure Program’s Health and Safety Water Stream (MHIP-HSWS), is part of a broader $875 million provincial commitment to water-related infrastructure. Officials say the investment will benefit more than 5,500 homes while enabling future residential development and maintaining employment in the construction sector.
“Across Ontario, our government is investing in our $223 billion plan to build so we can protect Ontario, keep workers on the job and connect families to the world-class services they rely on,” said Doug Ford. “Today’s investment will protect homeowners and support the construction of new homes across Perth and Wellington counties. We will continue to work with our municipal partners to build for the future and keep the dream of homeownership alive in Ontario.”
Funding Breakdown Across Municipalities
The majority of the funding will be directed to large-scale wastewater and water system upgrades in several municipalities.
The Township of Wellington North will receive $26.1 million to expand the Arthur Wastewater Treatment Plant, upgrade the associated forcemain and replace and expand the Drayton Sewage Pumping Station in Mapleton. The project is expected to ensure long-term service sustainability for approximately 2,330 existing homes.
The Municipality of West Perth has been allocated $2.05 million to support upgrades to the Herbert Street Sewage Pumping Station, helping maintain service reliability for roughly 2,378 homes.
Meanwhile, the Township of Perth East will receive $675,250 to fund the Milverton Well Replacement and Reservoir Rehabilitation project, improving water security for about 850 homes.
Economic Context and Provincial Strategy
The infrastructure funding comes as Ontario continues to position public investment as a buffer against economic uncertainty, including ongoing trade pressures with the United States.
“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. “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.”
The province first launched the MHIP-HSWS in January 2025 with an initial $175 million commitment. An additional $700 million announced in January 2026 has brought total program funding to $875 million.
Local Leaders Highlight Growth Opportunities
Local officials say the funding will address long-standing infrastructure constraints that have limited housing and economic expansion in their communities.
“Our government is making significant, long-term investments in rural infrastructure, including right here in Perth-Wellington,” said Matthew Rae. “This nearly $29 million commitment will strengthen water systems, improve community assets and unlock new housing opportunities across Wellington and Perth Counties, which will support economic growth and ensure we are protecting our communities for the next generation.”
Municipal leaders echoed the importance of the investment in enabling growth and improving essential services.
“Safe and reliable water infrastructure is a key component of economic and community growth in rural Ontario. Investments like this demonstrate our government’s commitment to enabling opportunities for rural families, businesses and communities to thrive.”
- Lisa Thompson
“The Township of Wellington North is grateful for the province’s support for the Arthur Wastewater Treatment Plant project. This funding is a major step forward in helping us unlock the capacity we need to support responsible growth in Arthur, while also strengthening the infrastructure that helps our neighbouring communities and the surrounding region grow and prosper. It’s also a great example that when all levels of government work together, we can deliver the essential infrastructure our residents need and our economy depends on.”
- Andy Lennox
“This announcement is great news for our current and future ratepayers. The Township of Mapleton has been limited in growth for two decades because of wastewater restrictions. In 2025 we formed a Municipal Service Corporation and embarked on a $42 million expansion of our water and wastewater systems to unleash our housing growth potential. This funding from the province’s Health and Safety Water Stream will have a significant positive impact in our community. We are extremely thankful for the collaboration we have had with the provincial government.”
- Gregg Davidson
“The Municipality of West Perth is grateful for the Ontario government’s support through more than $2 million in funding for the Herbert Street Sewage Pumping Station Mechanical Rehabilitation project. This much-needed investment will strengthen critical infrastructure and help ensure the continued delivery of reliable wastewater services for our community. It represents a significant step toward ensuring the long-term viability of essential services that support both our current residents and future growth.”
- Walter McKenzie
“The province’s financial support through the Municipal Housing Infrastructure Program will allow the Township to proceed with the Milverton Well Replacement and Reservoir Rehabilitation Project. We remain grateful for the continued support from the provincial government and MPP Matthew Rae.”
- Rhonda Ehgoetz
Long-Term Infrastructure Commitment
Since 2024, Ontario has invested nearly $150 million in Perth and Wellington counties through the MHIP and the Ontario Community Infrastructure Fund, marking one of the largest infrastructure funding commitments in the region’s history.
Province-wide, the MHIP program has been expanded to $4 billion as of August 2025, with the goal of accelerating home construction and upgrading essential infrastructure such as roads and water systems. According to provincial figures, the program has enabled the potential construction of approximately 800,000 new homes while helping protect about 375,000 existing homes.
The latest funding announcement underscores the province’s ongoing strategy to align infrastructure investment with housing supply targets and regional economic development, particularly in rural and smaller urban communities.