The Ontario government has announced details of a new fund intended to help municipalities repair, rehabilitate and expand critical drinking water, wastewater and stormwater infrastructure.

The province says the $200-million Housing-Enabling Water Systems Fund will help municipalities build critical water infrastructure that would not otherwise get built and bring the province one step closer to meeting its goal building at least 1.5 million homes by 2031.

“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 Infrastructure Minister Kinga Surma. “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.”

In last week’s 2023 Fall Economic Statement, the government introduced additional measures to help build critical infrastructure faster. This includes launching the Ontario Infrastructure Bank and removing the full eight per cent provincial portion of the Harmonized Sales Tax in an effort to encourage the construction of new rental housing units.

The Housing‐Enabling Water Systems Fund also 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.

Eligible municipalities will be able to nominate housing-enabling water and wastewater projects through the Housing-Enabling Water Systems Fund early next year.

"Water, sewer and stormwater infrastructure are the most critical infrastructure assets necessary in the residential construction process,” said Patrick McManus, executive director of the Ontario Sewer and Watermain Construction Association. “This is the first step in building new residential developments. Without these assets being built, homes can’t get built."

The province says it is 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.