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Prime Minister Mark Carney greets construction workers following a news conference in Red Deer, Alta. on July 29, 2026. (Image Credit: rdnewsNOW/Josh Hall)
By Bill Graveland, The Canadian Press
announcement made in red deer

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

Jul 29, 2026 | 10:09 AM

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.

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rdnewsNOW/Pattison Media — Alberta Municipalities (ABMunis) reacted to the announcement Wednesday, calling it ‘welcome news’ for communities.

ABMunis noted it has been advocating to both the federal and provincial governments for this ‘desperately-needed’ funding.

But they also say details matter.

“We still need to understand the specifics of how funds will flow, what conditions are attached to the funding, how projects will be prioritized, and the exact timelines for funding proposals,” the organization says.

“We will be taking time to connect with our colleagues at the Government of Canada and the Government of Alberta to better understand how they came to this agreement and ascertain whether this announcement means net new provincial funding or not. We look forward to being consulted on the application and reporting processes so that our municipal members of all sizes can gain access to these much-needed funds as soon as possible.”

ABMunis added that basic infrastructure needs must be funded and built before new housing divisions can be built.

“This means municipalities must pay for infrastructure before they see any returns on their investments,” officials say.

“In turn, this means increased pressure on existing homeowners who pay property taxes and developers who pay offsite levies since these are the primary revenue sources of local governments.”

They are reserving further comment until more questions are answered, they added.

by Bill Graveland, The Canadian Press