A major infrastructure push by the Government of Ontario is set to reshape rural communities in Perth County and Wellington County, with nearly $29 million earmarked to upgrade critical water systems unlocking housing growth, protecting thousands of homes, and fueling economic expansion.
The funding, part of the province’s $875 million Municipal Housing Infrastructure Program’s Health and Safety Water Stream (MHIP-HSWS), will support more than 5,500 homes while paving the way for new residential development across Southwestern Ontario.
“Across Ontario, our government is investing in our $223 billion plan to build so we can protect Ontario, keep workers on the job and connect families to the world-class services they rely on,” said Premier Doug Ford. “Today’s investment will protect homeowners and support the construction of new homes across Perth and Wellington counties. We will continue to work with our municipal partners to build for the future and keep the dream of homeownership alive in Ontario.”
The investment targets three key municipalities, addressing long-standing infrastructure gaps:
- Township of Wellington North will receive over $26 million to expand the Arthur Wastewater Treatment Plant and upgrade pumping infrastructure—ensuring long-term service for 2,330 homes.
- Municipality of West Perth is allocated just over $2 million to rehabilitate the Herbert Street Sewage Pumping Station, sustaining services for nearly 2,400 homes.
- Township of Perth East will receive $675,250 to replace the Milverton well and rehabilitate its reservoir, improving water security for 850 homes.
The province says these upgrades are essential to removing growth barriers and enabling new housing construction in communities that have faced capacity limits for years.
The announcement comes amid broader economic concerns, including global uncertainty and trade pressures.
“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 Acting Infrastructure Minister Todd McCarthy. “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.”
Municipal leaders say the funding could mark a turning point for communities long constrained by aging or limited infrastructure.
“Safe and reliable water infrastructure is a key component of economic and community growth in rural Ontario,” said Lisa Thompson. “Investments like this demonstrate our government’s commitment to enabling opportunities for rural families, businesses and communities to thrive.”
In Wellington North, Mayor Andy Lennox called the funding “a major step forward,” adding it will “unlock the capacity we need to support responsible growth in Arthur.”
Meanwhile, Mapleton Mayor Gregg Davidson highlighted decades of stalled development:
“This announcement is great news for our current and future ratepayers. The Township of Mapleton has been limited in growth for two decades because of wastewater restrictions.”
Other local leaders echoed similar sentiments. West Perth Mayor Walter McKenzie said the funding will “help ensure the continued delivery of reliable wastewater services,” while Perth East Mayor Rhonda Ehgoetz noted it allows the township to move forward with long-needed upgrades.
The $29 million investment is part of a rapidly expanding provincial infrastructure plan. Since 2024, nearly $150 million has already been directed to Perth and Wellington counties through MHIP and the Ontario Community Infrastructure Fund—one of the largest commitments in the region’s history.
Provincewide, the program has been scaled up to $4 billion, with officials estimating it has already made approximately 800,000 new homes possible while protecting about 375,000 existing homes.
Local MPP Matthew Rae said the latest funding signals long-term commitment:
“This nearly $29 million commitment will strengthen water systems, improve community assets and unlock new housing opportunities… ensuring we are protecting our communities for the next generation.”
With housing demand rising and infrastructure often lagging behind, Ontario’s latest investment aims to bridge that gap turning pipes, pumps and treatment plants into catalysts for growth, jobs and long-term community stability.
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