Farkas outlines potential business relief after Calgary water-main break

Several business owners affected by the water-main break on 16 Avenue N.W. say they desperately need compensation from the city.

Calgary Mayor Jeromy Farkas says city council is examining changes to how major infrastructure projects are planned, including setting aside money within future capital budgets to help businesses disrupted when projects run over schedule.

In the wake of the water-main break on Dec. 30, 2025, Farkas said businesses should not be left absorbing losses caused by city-led construction delays or infrastructure failures.

“We have to look at all options on the table as a council in terms of better supporting our businesses,” Farkas said.

• The information you need to know, sent directly to you: Download the CTV News App

“If the city wasn’t able to follow through on certain timelines, if the city wasn’t able to deliver on certain timelines, it didn’t make sense for local businesses to be left picking up the tab.”

The rupture of a major feeder main near 16 Avenue triggered road closures, water restrictions and boil-water advisories across parts of the city, disproportionately affecting communities such as Montgomery and Bowness.

The break came during the busy holiday period and followed a similar feeder-main failure earlier last year, compounding losses for businesses still recovering from earlier disruptions.

Under Farkas’s proposal, a portion of future capital infrastructure projects would include funding earmarked specifically for business continuity — money that could be accessed when delays or failures significantly affect nearby businesses.

While no compensation program has been finalized, Farkas says council wants to move beyond symbolic support.

“I know for all of us as a council, we want to give much more than just moral support,” he said.

City data shows Calgary’s water system remains under strain.

According to the city’s potable water demand dashboard, water use stood at approximately 514 million litres per day as of 11 a.m. on Jan. 6, well above the target of staying below 485 million litres per day to allow reserves to recover.

A night of chaos and an abrupt shutdown

For Saud Abbasi, the water-main break was not just a business disruption, it was a dangerous emergency he encountered while working.

Abbasi, owner of Pizza Bae on Bowness Road N.W., said he was delivering pizzas the evening of Dec. 30 when floodwaters surged beneath a bridge near 16 Avenue, trapping vehicles and families in freezing conditions.

“I decided to put myself in there and try to assist as many kids, as many families as I can,” Abbasi said.

Before first responders arrived, Abbasi said he helped families with children get through the fast-moving water to safety, sometimes carrying people across flooded sections of roadway.

“It was shivering cold water that was coming with very high speed,” he said.

Abbasi’s vehicle was flooded, though it was later removed after the area was secured.

The following morning, he said he was told the water supply at his restaurant was contaminated and unsafe for use without boiling — something his business could not accommodate.

“I cannot shut my business on the busiest day of my pizza business,” Abbasi said. “I’m just new. It’s my baby business.”

The closure forced Abbasi to miss New Year’s Eve, typically one of the busiest days of the year for pizza restaurants. He estimated the loss at roughly $7,000 in sales — money he said would normally help cover staff wages and operating costs during slower months.

Ongoing road closures and reduced access have continued to deter customers, he added.

“We are seeing a decline in business,” Abbasi said. “Business is going down.”

Businesses warn losses may be unsustainable

For some businesses, the latest break reopened wounds that never fully healed from the first feeder-main failure.

Puneet Kaushik, owner of Nirvana Canna and Montgomery Vapes, says he was at his store the night the pipe burst and immediately feared the impact on New Year’s Eve — the second-busiest retail day of the year.

“It was one of the lowest New Year’s Eves I’ve ever had since 2019,” Kaushik said.

Kaushik says the first break permanently changed customer habits, costing him about 35 per cent of his customer base even after repairs were completed.

During the earlier disruption, he says monthly sales dropped by as much as 80 per cent compared with the previous year.

“When it happened the second time, I’m honestly very worried,” he said. “Once a customer decides that they want to shop somewhere else, they don’t come back.”

Kaushik said the financial strain is becoming unsustainable, particularly with high commercial rents along 16 Avenue and limited access to the area.

“Without compensation, I know for a fact that I won’t last till the summer,” he said.

He added business interruption insurance offered no relief, saying insurers denied claims because stores technically remained accessible, even when customer traffic collapsed.

“I didn’t even bother going through insurance this time because I know the answer,” Kaushik said.

Nearby, Canine Cuts owner Christena Callaghan says she was shocked to learn of the latest break, especially given how close it was to the previous failure.

“I was completely shocked to hear that this had happened, like not even a block and a half away from the first one,” she said.

While her grooming business has not yet lost water service, Callaghan said uncertainty around future shutdowns is concerning for an operation that depends entirely on water.

“I don’t know how we would even begin to work around stuff like that,” she said.

Callaghan said compensation would be important for businesses facing prolonged construction, traffic detours and potential intermittent water reductions.

“I think there should be a compensation package, absolutely,” she said. “This is their problem that was overlooked for years.”

She also stressed the importance of accountability as an independent review into the city’s water infrastructure is released.

“The accountability has to be somewhere,” Callaghan said.

City urges patience as questions remain unanswered

Farkas says city council is set to receive the final report from an independent panel examining what went wrong with Calgary’s water infrastructure and how governance and oversight should change moving forward.

“These are many experts with decades of experience,” he said, adding the report is expected to outline why the failures occurred and what steps are needed to prevent future breaks.

Farkas said transparency will be critical as council reviews the findings.

“The good, the bad and the ugly,” he said. “Calgarians deserve to know what went wrong with our essential water infrastructure.”

While the mayor has spoken about setting aside funds within future capital projects, he said he is not yet able to provide details on how compensation would work, including timelines or eligibility.

“I’m not at a point to be able to go into detail about that,” he said.

In the meantime, Farkas said councillors have been visiting affected neighbourhoods, encouraging residents to support local businesses.

“That’s our strong push at this time,” he said.

City officials continue urging Calgarians to reduce water use as demand remains above sustainable levels. High consumption places pressure on treatment plants, underground storage and the city’s ability to maintain water pressure for emergencies such as firefighting.

“We are entering loss of life territory where if we continue on our current trends, we will not have the water pressure needed to maintain our fire hydrants,” Farkas said.

However, as Calgary works through repairs and prepares for potential future disruptions, business owners say their survival depends on clear answers and concrete support, much sooner rather than later.

“I’m worried there’s no way that I can stay open,” Kaushik said.