ORILLIA, Ont. — The Ontario government is investing an additional $700 million to upgrade and expand aging water and wastewater infrastructure in 127 municipalities and First Nations communities, a move it says will support housing construction, job creation and community resilience across the province.
The funding will be delivered through the Municipal Housing Infrastructure Program (MHIP), a provincial initiative designed to help communities build core infrastructure needed to enable new housing. Ontario increased MHIP to a total of $4 billion last year, with the Health and Safety Water Stream (HSWS) now accounting for $875 million of the overall program.
The province said the new investment will help improve access to safe drinking water, reduce risks tied to extreme weather, and support economic growth by addressing infrastructure constraints that can delay development.
“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.”
McCarthy made the announcement in Orillia alongside Minister of Emergency Preparedness and Simcoe North MPP Jill Dunlop, with the province highlighting projects in the Simcoe North region as early examples of the expanded HSWS funding.
Across Simcoe North, Ontario is investing up to $78.4 million to support five water system projects, including upgrades to Orillia’s Fittons Road West Sewage Pumping Station. The province said the work is intended to help prevent sewage backups and support future growth.
Other HSWS investments in the riding include $30 million for Ramara, $29.5 million for Tay Township, $11.5 million for Penetanguishene and $4.16 million for Tiny Township. The government said those allocations are in addition to more than $55 million previously provided to Simcoe North municipalities through the Housing-Enabling Water Systems Fund (HEWSF), another stream within MHIP.
“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.”
Municipal leaders in the region welcomed the funding, framing the upgrades as both a public health priority and a practical step toward supporting long-term development.
“We sincerely thank the Province of Ontario for their continued support through the Health and Safety Water Stream. This investment is more than infrastructure, it is about improving the daily lives of our residents. By working together with the province, we can ensure safe, reliable water systems that protect public health and strengthen our community for generations to come,” said Don McIsaac, Mayor, City of Orillia.
In Tiny Township, officials said the funding will help replace a key piece of drinking water infrastructure.
“The Township of Tiny is very grateful to the Ontario government for awarding $4.5 million in funding through MHIP’s Health and Safety Water Stream. This funding enables the replacement of a major watermain in the Lafontaine drinking water system, part of a complex series of 16 drinking water systems in the Township. This opportunity helps ease the financial burden of essential infrastructure upgrades for a rural municipality like Tiny, while continuing to protect the delivery of clean, safe drinking water for our community,” said David Evans, Mayor, Township of Tiny.
Tay Township’s mayor said the investment is tied directly to easing capacity pressures that have stalled development.
“This is incredible news for Tay Township. We are extremely grateful to the Province of Ontario for this timely investment through the Health and Safety Water Stream fund. This funding supports the much-needed expansion of the Victoria Harbour Wastewater Treatment Plant. It is a critical step in addressing current capacity limits and unlocking new housing opportunities. With the plant operating over capacity and development on hold, this investment brings us closer to lifting the freeze that is currently affecting more than 1,500 housing units. We look forward to moving ahead in a way that benefits our current residents and welcomes future families to Tay Township,” said Ted Walker, Mayor, Tay Township.
In Penetanguishene, the funding will support the Robert Street West Well Treatment Facility project, aimed at expanding water supply capacity and improving system reliability, according to local officials.
“On behalf of the Town of Penetanguishene, I would like to thank the Ontario government for their investment through the Health and Safety Water Stream. I would also like to thank MPP Jill Dunlop for her continued support and advocacy in securing vital funding for our communities. These investments are essential, they ensure communities across the province have access to safe drinking water, reliable wastewater and stormwater systems and responsible water management. This funding supports Penetanguishene’s Robert Street West Well Treatment Facility project, expanding our water supply capacity to support future growth, establishing a secondary source of safe drinking water for our residents and adding a new reservoir to help stabilize the distribution system during peak demand,” said Doug Rawson, Mayor, Town of Penetanguishene.
Ramara Mayor Basil Clarke said the investment will help advance upgrades tied to public health and environmental protection.
“On behalf of the Township of Ramara, I would like to express my deep appreciation and gratitude to Premier Ford, Minister McCarthy and MPP Jill Dunlop for their leadership and support. This incredible investment represents a significant milestone for our community. The funding will allow us to move forward with critical water and wastewater upgrades that protect public health, strengthen climate resilience, safeguard Lake Simcoe and ensure Ramara has the safe, reliable infrastructure needed to support housing stability and long-term growth,” he said.
Ontario said other recipients of the $700 million in additional HSWS funding will be announced locally in the coming weeks. The province also positioned the investment as part of its broader capital plan, which totals more than $220 billion and includes spending on transit, highways, hospitals, schools and housing-enabling infrastructure.
The MHIP includes four funding streams: the Housing-Enabling Water Systems Fund, the Housing-Enabling Core Servicing Stream, the Health and Safety Water Stream, and the Agriculture and Irrigation Stream. Since launching in 2024, the province said MHIP has made about 800,000 more new homes possible, while Infrastructure Ontario’s lending program is also providing up to $1 billion in loans to help municipalities build water infrastructure tied to housing growth.
