Alberta and Ottawa sign deal to fund water, wastewater infrastructure for housing

The federal and Alberta governments have signed an agreement to accelerate homebuilding in the province by funding water and wastewater infrastructure.

The agreement, announced by Prime Minister Mark Carney and Premier Danielle Smith in Red Deer, allows Alberta municipalities to access more than $510 million in federal funding over eight years.

The province is to contribute at least one-third of eligible project costs with up to $428 million of funding.

Under the agreement, Alberta is to maintain the lead role in identifying and prioritizing projects with the federal Canadian Housing Infrastructure Fund for regional needs.

The province says growth in Alberta over the last five years has affected demand for affordable and market housing with more than 600,000 more residents.

Smith says the population growth has strained public services and infrastructure all over the province.

“It has highlighted an acute need to build more and build faster,” she said Wednesday at a news conference with Carney.

“Builders can only build when the infrastructure is there to support new communities. A whole lot of work has to happen in the background, and literally under the ground, before the first shovel ever breaks the surface.”

Carney said Canada hasn’t built enough homes in decades, resulting in many paying more than half their income on housing.

“Strong communities start right here, they start with housing,” he said. 

“A home needs more than four walls, a roof, stone glazing and stone top. It also needs clean drinking water and a reliable sewage system.”

Carney noted that a new wastewater pipeline in Airdrie, Alta., outside Calgary, is to unlock the construction of 45,000 new homes. 

“We need that because Canadians and Albertans can’t afford the delays,” he said.

This report by The Canadian Press was first published July 29, 2026.

By Bill Graveland | Copyright 2026, The Canadian Press. All rights reserved.