Canada and Nova Scotia partner with the Municipality of Chester to invest in wastewater infrastructure that will support more housing

CHESTER, NS, March 19, 2026 /CNW/ - The Government of Canada is using every tool at its disposal, leveraging technology, innovation and partnerships, to build homes at scale.

To that end, MP Jessica Fancy, Minister John A. MacDonald, and Warden Allen Webber announced a federal investment of $7 million, a provincial contribution of more than $5.8 million, and a municipal investment of more than $4.6 million through the Canada Housing Infrastructure Fund (CHIF) to improve the wastewater infrastructure needed to support the construction of more homes, faster.

Funding will support the construction of a new wastewater treatment plant in Chester Basin, along with upgraded collection, transmission, and outfall systems to replacing the current infrastructure, which is at capacity and nearing the end of its life. The new and expanded plant will service 107 existing dwellings and will be built with the capacity to support up to 652 housing units in the future, helping to alleviate a housing shortage in the region. The investment will also address the current plant's vulnerability to recurring coastal flooding.

This project supports future residential growth and is part of the Governments of Canada and Nova Scotia's funding agreement that is paving the way for the construction of more homes to support a growing population. 

These types of important infrastructure projects support the Government of Canada's goal to address the housing crisis, and complement the work of Build Canada Homes, the federal agency that will build affordable homes, support builders with financing, and encourage better building methods.

Together, we will make housing more affordable by unleashing the power of public-private cooperation, catalysing a modern housing industry, and creating new careers in the skilled trades.

Quotes

"Essential infrastructure projects like the wastewater system expansion in Chester Basin are foundational to building more homes for Canadians. With the launch of Build Canada Homes, our government will continue to work with provincial and municipal partners while we drive innovation in the homebuilding industry to build more affordable homes, faster."

Jessica Fancy, Member of Parliament for South Shore–St. Margarets

"This investment will modernize the wastewater system in Chester Basin, unlock new housing and enhance the system's resilience to storms and flooding. By leveraging opportunities and making strategic investments like this, we're helping municipalities deliver essential projects that strengthen communities, benefit current residents and drive growth."

The Honourable John A. MacDonald, Nova Scotia Minister of Municipal Affairs

"We are extremely pleased with the support of our federal and provincial partners. Our shared investment will secure infrastructure stability for our residents and small businesses well into the future. With the advancement of this important project, we are honouring our commitment to environmental stewardship and the cultivation of our communities."

Allen Webber, Warden of the Municipality of the District of Chester

Quick facts

• The federal government is investing $7 million in this project through the Canada Housing Infrastructure Fund (CHIF)'s provincial and territorial agreement stream, while the Government of Nova Scotia is contributing a total of $5,832,750 and the Municipality of Chester is contributing $4,667,250.
• Part of Budget 2024, CHIF is investing up to $6 billion for the construction and upgrading of core public infrastructure that will enable housing growth and densification in communities across Canada. 
• CHIF is designed to help communities build the infrastructure necessary to support more homes and increase housing density. The funding can be used for projects that improve drinking water, wastewater, and stormwater systems, as well as initiatives that preserve existing capacity, enhance system reliability, or implement waste diversion measures to reduce landfill use.
• A share of CHIF funding is allocated to support long-term provincial and territorial priorities. Provinces and territories must finalize an agreement with the Government of Canada and commit to key housing-enabling conditions to receive funding. Funding for those provinces and territories that do not conclude an agreement will be transferred to the direct delivery stream of CHIF. 
• Funding through the direct delivery stream of CHIF is supporting important infrastructure projects in municipalities and Indigenous communities. The intake for this stream is now closed.
• Build Canada Homes was launched on September 14, 2025 and is focusing on increasing the supply of affordable housing. Alongside this effort, Canada Mortgage and Housing Corporation (CMHC) will continue to deliver on its mandate to contribute to the well-being of Canada's housing system through existing programs such as the Apartment Construction Loan Program and Mortgage Loan Insurance products. 
• Federal funding is conditional on fulfilling all requirements related to consultation with Indigenous groups and environmental assessment obligations.

Associated Links

Canada Housing Infrastructure Fund
Build Canada Homes

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SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Renée LeBlanc Proctor, Senior Communications Advisor and Press Secretary, Office of the Minister of Housing, Infrastructure and Communities, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]; Heather Fairbairn, Province of Nova Scotia, Municipal Affairs, 902-717-2151, [email protected]; Jennifer Webber, Communications Officer and Outreach Coordinator, Municipality of Chester, 902-275-4107, [email protected]