The federal and Alberta governments have signed an agreement that will provide more than $510 million over the next eight years for municipal water infrastructure projects aimed at accelerating housing construction across the province.
The funding will be delivered through the Canada Housing Infrastructure Fund (CHIF) and support drinking water, wastewater, stormwater and solid waste projects that enable new residential development.
The agreement comes as Alberta works toward its goal of adding 25,000 affordable homes by 2031 amid continued population growth and increasing pressure on municipal infrastructure.
Under the agreement, Alberta will contribute at least one-third of eligible project costs for municipally led projects. At least $100 million in funding will be directed to projects in rural and Indigenous communities, representing approximately 20% of the total allocation.
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The announcement follows rapid population growth in Alberta, where the province has added more than 600,000 residents over the past five years. Provincial officials said the increase has placed significant pressure on housing supply, public services and municipal infrastructure, highlighting the need to expand essential servicing to support continued residential development.
“Alberta is growing faster than almost anywhere in the country, and communities need the infrastructure to keep pace,” said Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada. “Our government knows that by investing in essential systems like drinking water, wastewater, stormwater, and solid waste infrastructure, this agreement will help communities across Alberta unlock new housing opportunities, support growing populations, and build the foundations needed for long-term prosperity.”
According to the federal government, many municipalities are facing aging or capacity-constrained water and wastewater systems that have become barriers to new housing development. The investments are intended to expand or upgrade critical infrastructure needed to accommodate population growth and new residential construction.
The Alberta government said it negotiated an agreement that aligns with existing provincial water infrastructure programs while maintaining provincial authority over project selection. Alberta will retain responsibility for identifying and prioritizing projects based on regional needs and growth pressures.
The province will submit projects representing at least $25 million in federal funding for approval by November 30, 2026, with all remaining projects to be submitted by March 31, 2030.
