Ontario invests in water projects to support new housing locally

Simcoe North MPP Jill Dunlop (C) announces the province is investing millions in the region to build more homes on Tues., Aug. 26, 2025.

The Ontario government is injecting millions of dollars into water systems to help support new housing developments in Simcoe County.

The Township of Severn is receiving more than $7.8 million to help build about 3,000 new homes, while the Town of Penetanguishene will receive nearly $676,000 to support roughly 1,000 new homes.

In Severn, the funding will be used to upgrade the Westshore Wastewater Treatment Plant. In Penetanguishene, the money will be put toward rehabilitating the Fox and Waterfront sanitary sewers.

Both projects will help to increase capacity, strengthen infrastructure and open the door to future development.

Simcoe North MPP Jill Dunlop said the investments would "support vital water infrastructure upgrades, helping both communities accommodate future housing growth and meet the needs of residents for years to come."

Penetanguishene Mayor Doug Rawson called the project “a significant step forward in ensuring the long-term sustainability and resilience of our infrastructure." While Severn Township Mayor Mike Burkett said the funding was “essential for our long-term growth."

The money comes from the province’s Housing-Enabling Water Systems Fund, part of the Municipal Housing Infrastructure Program. The fund aims to help municipalities improve core services like water and wastewater systems so communities can handle new housing growth.