Stay informed with the LNN Daily Newsletter
(Image Credit: City of Lethbridge)
City of Lethbridge

City of Lethbridge Council receives funding proposal for water & wastewater expansion project

Oct 6, 2026 | 3:58 PM

The City of Lethbridge is considering a proposal to support an innovative Regional Water & Wastewater expansion project.

On Tuesday, Oct. 6, Lethbridge City Council was presented a business case for the $287 million expansion program that would aid regional growth by supporting up to 22,000 new homes, creating up to 44,000 jobs across Alberta, and opening approximately 4,000 hectares of land for future homes.

The business case includes a request of $95.6 million from the Government of Alberta that would form part of a three-way partnership between the provinces, the city and Government of Canada.

The partnership would help the city pursue matching federal funding through the Canada Housing Infrastructure Fund.

“To support growth across southern Alberta, we need the infrastructure to make it possible,” says Mayor Blaine Hyggen. “The city is ready to fund one-third of the upgrades. This proposal would help secure funding partnerships while helping manage costs for residents.”

The expansion would increase water treatment capacity to 180 million litres per day, contribute nearly $4.6 billion to Alberta’s GDP, generate $2.8 billion in labour income, and produce more than $296 million in government revenues by 2042.

The city would be able to cover its one-third of the project cost with $10 million from the local government fiscal framework allocation and a rate-funded payment approach.

“This project represents a generational infrastructure investment to support regional prosperity for decades to come,” says City Manager Lloyd Brierley. “We know water is life. Just like plants and animals need water to grow, so does our city and our region. That’s why this project is so critical to our future and to the opportunities we want to create for future generations.”

The Community Issues Committee has directed Administration to submit a formal funding request from the provincial government.

If approved by council and supported by the provincial and federal government, the project would begin construction in 2027 and be completed by 2030.