Today, MPP Graydon Smith announced the Ontario government is investing up to $26,315,406 to build, upgrade, and rehabilitate water infrastructure in Shawanaga First Nation, the District of Muskoka, the Town of Parry Sound, and the Village of South River.
The funding comes from the province’s Municipal Housing Infrastructure Program – Health and Safety Water Stream (MHIP-HSWS), which has increased by $700 million for a total of $875 million to support access to safe drinking water, housing, job creation, and protection for communities during extreme weather events.
“Our government is helping municipalities fund critical infrastructure projects that improve quality of life and strengthen access to safe, reliable drinking water and housing,” said Graydon Smith, MPP for Parry Sound–Muskoka. “We are committed to supporting small towns and rural communities by investing in the essential infrastructure they need today and for the future.”
The MHIP-HSWS funding of $9,342,801 will be used in Shawanaga First Nation for its Drinking Water Distribution Rehabilitation project.
The MHIP-HSWS funding of $8,285,605 will be used in the District of Muskoka to support backup power for water and wastewater resiliency.
“District Council welcomes this major investment into dozens of critical upgrades to water infrastructure in Muskoka,” said District Chair of Muskoka Jeff Lehman. “Backup power upgrades for essential infrastructure are only becoming more important, especially as Muskoka faces more and more severe weather events. Further, the seven wet well upgrades will help support housing development and better manage frequent storm events.”
The MHIP-HSWS funding of $7,163,125 will be used in the Town of Parry Sound for upgrades and rehabilitation at the Parry Sound Sewage Treatment Plant.
“Council was excited to hear the Town of Parry Sound will be receiving a $7.2 million grant from the province,” said Mayor McGarvey. “This grant will enable much-needed upgrades and rehabilitation of the Town’s Sewage Treatment Plant to proceed.”
The MHIP-HSWS funding of $1,523,875 will be used in the Village of South River for upgrades to its water treatment plant.
“We are very appreciative that the Village of South River has secured $1.5 million from the Municipal Housing Infrastructure Program: Health and Safety Water Stream to upgrade our Water Treatment Plant. These vital pump upgrades and new centrifuge will boost efficiency, slash sludge management costs, and continue to deliver clean, affordable, safe drinking water for our residents today and future residents as we grow,” said Mayor of South River Jim Coleman. “Thank you MPP Graydon Smith and the Municipal Housing Infrastructure Program—it’s a game-changer for environmental stewardship and sustainable infrastructure in our special community.”
This funding is part of a historic investment of $4 billion in the Municipal Housing Infrastructure Program (MHIP), included in Ontario’s $220 billion capital plan, the most ambitious in the province’s history, to build transit, highways, hospitals, schools, and water infrastructure that enables new housing.
“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.”
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.
ADDITIONAL RESOURCES
- Ontario Investing $1.6 Billion in Municipal Housing Infrastructure Program
- Ontario Getting Homes and Infrastructure Built Faster and Smarter
- Municipal Housing Infrastructure Program
- Health and Safety Water Stream
Don’t miss out on Doppler!
Sign up here to receive our email digest with links to our most recent stories.
Local news in your inbox so you don’t miss anything!
Click here to support local news
Too bad the government could not let us use the free public health system to handle our required water tests, but no, that can’t happen. Although they are free to private citizens, in any quantity, any business has to figure out how to find a private lab, pay their fees and also find a way to ship water samples to that lab. No small issue as the closest lab is in Barrie, they only have courier service pickup during a 1 hour window early on the first Wed. of each month. Miss that and your up the water pipe with no bottle!
And to boot, it costs $40 for each test, again no small issue.
It all seems so totally pointless and unfair considering that business pay more tax than private people but they get “no service” at all out of the government system. Sadly, typical of government in Ontario. All talk, all cost, nothing much useful and I have not even gone into the costs for “mandated” but unsupported training requirements. whole system seems built to fail or at least be the most costly way to do small water supply quality control.