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.
Quotes
"This expanded funding for critical water infrastructure will contribute to strengthening the safety and reliability of water services for First Nations communities. The Health and Safety Water Stream is working to ensure the systems that people rely on are dependable and modern, today and into the future."
- Greg Rickford, Minister of Indigenous Relations and First Nations Economic Reconciliation
"Safe and reliable water infrastructure is a key component of economic and community growth in rural communities throughout the province. The additional $700 million dollars in new investments ensures even more rural municipalities and First Nations will benefit from access to critical water and wastewater infrastructure."
- Lisa Thompson, Minister of Rural Affairs
"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."
- Don McIsaac, Mayor, City of Orillia
"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."
- David Evans, Mayor, Township of Tiny
"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."
- Ted Walker, Mayor, Tay Township
"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."
- Doug Rawson, Mayor, Town of Penetanguishene
"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."
- Basil Clarke, Mayor, Township of Ramara
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