District approves agreement with province for Water Stream grant

The grant will ensure constant power for water and waste water systems, and the safety of the Districts water supply

District of Muskoka council approved an agreement with the provincial government for a Health and Safety Water Stream grant, in the February 17, 2026, meeting.

According to the staff report, the District owns and operates a wide range of water and wastewater systems that are essential to public health, environmental protection, fire safety and the preservation of existing housing. Many of these facilities rely on continuous electrical power to operate treatment processes, pumping stations and monitoring systems.

Recent years have seen an increase in severe weather events and prolonged power outages across Muskoka, exposing vulnerabilities in aging standby power infrastructure and, in some cases, the lack of permanent backup power at key facilities.

During past outages, District staff were required to deploy portable generators under hazardous conditions to maintain essential services. The report notes several documented incidents involving generator failure, near overflows and service disruptions.

Following severe weather events in 2024 and 2025, the District retained a consultant to review emergency response measures. That review was presented to a joint meeting of Community and Planning Services and Health Services in October 2025 and included a recommendation to develop a comprehensive standby power plan for District facilities. The current project aligns with that recommendation.

To help fund the work, the District applied to the province's Municipal Housing Infrastructure Program – Health and Safety Water Stream. The application proposed a District-wide approach to upgrading backup power at critical water and wastewater facilities.

Staff reported that the District's application was successful, with funding covering up to 73 per cent of eligible project costs, to a maximum of $8.29 million. Access to the funding is conditional on the District completing the projects by March 31, 2029.

Staff advised that the funding will help “improve resiliency and back up plan and power availability.”

The funding supports a coordinated program of generator installations, generator replacements and targeted wet well upgrades across the District's water and wastewater infrastructure.

The grant will strengthen backup power and resiliency at critical water and wastewater facilities once the agreement is finalized.

District Chair, Jeff Lehman, described the project services as “remarkable.” He said, “We’ve all experienced the challenges with power in the last few years… This is something that does protect growth and the environment.”

He expressed gratitude for the grant. He said, “It’s a very significant investment of the province of Ontario.”