Powering the next wave of growth and opportunity across southern Alberta

Reliable water and wastewater infrastructure is critical to supporting the next wave of housing, jobs and economic development in southern Alberta.

On Tuesday, the Community Issues Committee heard a proposal for advancing an innovative regional water & wastewater expansion project that could help unlock the next phase of transformative regional growth by:

• Supporting up to 22,000 new homes
• Creating more than 44,000 jobs across Alberta
• Opening approximately 4,000 hectares of land in southeast Lethbridge for future homes, businesses and jobs, including areas around the Lethbridge Airport that currently have constrained water and wastewater services

Lethbridge City Council was presented a business case for a $287 million regional water and wastewater expansion program. The business case includes a funding request of $95.6 million from the Government of Alberta. The funding would form part of a three-way partnership between the City, Province and Government of Canada. The proposal would also help the City pursue matching federal funding through the Canada Housing Infrastructure Fund (CHIF). A provincial commitment would allow this region-shaping project to begin construction in 2027 and be completed by 2030.

If approved by Council, and supported by provincial and federal funding partners, the expansion would increase water treatment capacity to 180 million litres per day. It could also:

• Contribute nearly $4.6 billion in Alberta’s GDP
• Generate $2.8 billion in labour income
• Produce more than $296 million in government revenues by 2042

These outcomes align with provincial priorities to increase housing supply, improve affordability and grow Alberta’s economy.

The project also unlocks wastewater conveyance and allows for development in areas currently restrained by a lack of capacity.

The business case shows existing water and wastewater systems are nearing their capacity limits. On May 26, 2026, City Council approved $285 million for an accelerated expansion of the Wastewater Treatment Plant. This additional $287 million of upgrades will be needed to support growth in Lethbridge and nearby communities. Lethbridge also supplies about 20 per cent of its treated water to neighbouring municipalities.

"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 City stands ready to fund its one-third program cost. This includes $10 million from its 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 proposed expansion program combines projects already identified in the City's Capital plans with new infrastructure investments. Together, these projects would increase regional capacity and support future growth across southern Alberta.

Longer term, analysis included in the business case suggests a broader Lethbridge plant expansion could eventually increase water treatment capacity to 250 million litres per day for the region. In the next 15 years, that scenario could generate:

• Nearly $9 billion in provincial GDP
• More than $600 million in government revenues
• $6.3 billion in labour income
• Approximately 99,000 person-years of employment

The business case identifies expansion of the Lethbridge system as the most cost-effective path forward. An independent 2025 study found that building a new greenfield regional water treatment plant would cost approximately 25 per cent more per cubic metre while providing 40 per cent less capacity than expanding the City's existing infrastructure.

"Expanding Lethbridge’s existing water treatment facilities is the most affordable way to meet future regional demand," says Joel Sanchez, Director of Infrastructure Services. "This proposal provides a practical path to adding capacity and supporting future homes, businesses and industry across the region."

The Committee directed Administration to submit a formal funding request to the Provincial government.

For Public Inquiries:
Call or chat with 311 | Monday to Friday, 8 a.m. to 4:30 p.m.