Ontario Allocates $120 Million for Rural Municipal Wastewater and Flood Infrastructure

ORILLIA, ON — Minister of Infrastructure Kinga Surma announced the release of $120 million in provincial capital grants through the Municipal Housing Infrastructure Program (MHIP), delivering direct funding to 28 rural and small-town municipalities across Southwestern and Eastern Ontario.

Unlocking 35,000 New Housing Units by Expanding Wastewater Capacity

The funding packages provide up to $5 million per municipality to expand sewage treatment plant aeration tanks, replace aging sanitary sewer trunks, and construct automated stormwater retention facilities in growing towns including Orillia, Brockville, Collingwood, and Stratford. Provincial infrastructure data indicates that existing wastewater capacity bottlenecks had previously blocked municipal councils from issuing building permits for over 35,000 approved housing units.

Minister Surma stated that building more homes starts with the vital pipes in the ground, affirming that provincial infrastructure grants empower small towns to grow without burdening local municipal property taxpayers.

Municipal Mayors and Homebuilders Support

Eastern Ontario Wardens' Caucus (EOWC) and Western Ontario Wardens' Caucus (WOWC) praised the grant awards for removing the primary bottleneck to rural housing growth.

Ontario Home Builders' Association (OHBA) commended the immediate release of municipal sewer capacity for shovel-ready subdivisions.

Construction Rollout Schedule

Municipal sewer excavation and wastewater treatment plant upgrades will commence in October 2026.