Ontario Investing in Critical Infrastructure

Province supporting municipal water projects to help build more housing and spur economic growth

MISSISSAUGA — The Ontario government is investing $200 million over three years to help municipalities repair, rehabilitate and expand critical drinking water, wastewater and stormwater infrastructure. The new funding will support the province’s rapidly growing population, unlock more housing opportunities and spur economic growth.

“We have heard time and time again that municipalities need more options for funding to meet the growing demand for infrastructure in their communities,” said Kinga Surma, Minister of Infrastructure. “We are listening and taking action by launching a new Housing-Enabling Water Systems Fund to build stronger, more prosperous communities. At the same time as the province is moving forward with our own program, we continue to call on the federal government for new federal-provincial infrastructure funding to address significant unmet infrastructure needs.”

Ontario’s new Housing-Enabling Water Systems Fund will support growing communities, helping municipalities build critical water infrastructure that would not otherwise get built and bringing the province one step closer to the government’s goal to build at least 1.5 million homes by 2031.

“We know that to build homes faster, municipalities need to service those homes. That’s why our government has been stepping up, giving our partners the tools that they need to build housing-enabling infrastructure,” said Paul Calandra, Minister of Municipal Affairs and Housing. “Programs like the Housing-Enabling Water Systems Fund are just one of several ways we are working with municipalities to help build more homes.”

As announced in Ontario’s 2023 Fall Economic Statement, the government is also introducing additional measures to help build critical infrastructure faster and smarter. This includes launching the new Ontario Infrastructure Bank and the building of more rental homes by taking steps to remove the full eight per cent provincial portion of the Harmonized Sales Tax (HST).

“Ontario is facing a housing crisis like never before and our government will continue to work with partners at every level of government to get shovels in the ground to build more housing,” said Peter Bethlenfalvy, Minister of Finance. “We will continue building a strong Ontario together through our responsible, targeted approach to get more critical infrastructure built while laying a strong fiscal foundation for future generations.”

The Housing-Enabling Water Systems Fund is part of the Ontario government’s most ambitious capital plan in the province’s history to invest in infrastructure that will support growing communities and ensure that infrastructure is built for today and for generations to come. Eligible municipalities will be able to nominate housing-enabling water and wastewater projects through the Housing-Enabling Water Systems Fund in early 2024.

Quick Facts

  • Much of Ontario’s infrastructure was built in the 1950s and 1960s and requires critical repairs.
  • The Housing‐Enabling Water Systems Fund complements the recently announced Building Faster Fund, a new three‐year $1.2 billion fund that supports municipalities in achieving their housing targets, including housing‐enabling infrastructure and other related costs that support community growth.
  • Ontario is also exploring additional tools to help fund municipal water infrastructure to support housing growth, such as providing improved flexibility for municipalities to access loans under the Infrastructure Ontario Loan Program.
  • To support the future of Ontario, the government is investing over $185 billion over the next 10 years in hospitals, long-term care homes, highways, public transit, and other key public infrastructure.
  • The 2023 Ontario Economic Outlook and Fiscal Review: Building a Strong Ontario Together continues the government’s responsible, targeted approach, providing the flexibility needed to help address ongoing economic uncertainty and build critical infrastructure in growing communities while laying a strong fiscal foundation for future generations.

Additional Resources