Friday, October 9, 2026
The City of Lethbridge is seeking $95.6 million from the Alberta government for a $287-million regional water and wastewater expansion program that officials say would support up to 22,000 new homes and open about 4,000 hectares of land in the city’s southeast.
The Community Issues Committee heard the proposal Oct. 6. The business case outlines a three-way partnership between the City, the province and the Government of Canada, and positions the City to pursue matching federal funding through the Canada Housing Infrastructure Fund. A provincial commitment would allow construction to begin in 2027 and be completed by 2030, the City said.
The expansion would increase water treatment capacity to 180 million litres per day and open land for future homes, businesses and jobs, including areas around the Lethbridge Airport that currently have constrained water and wastewater service. The City says existing water and wastewater systems are nearing their capacity limits, and the additional upgrades would be needed to support growth in Lethbridge and nearby communities. Lethbridge supplies about 20 per cent of its treated water to neighbouring municipalities.
On May 26, 2026, City Council approved $285 million for an accelerated expansion of the Wastewater Treatment Plant.
The City said it is ready to fund one-third of the program cost, including $10 million from its Local Government Fiscal Framework allocation and a rate-funded payment approach.
“To support growth across southern Alberta, we need the infrastructure to make it possible,” Mayor Blaine Hyggen said. “The City is ready to fund one-third of the upgrades. This proposal would help secure funding partnerships while helping manage costs for residents.”
City Manager Lloyd Brierley described the project as a generational investment.
“This project represents a generational infrastructure investment to support regional prosperity for decades to come,” Brierley said. “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 business case projects the program would 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. A longer-term scenario would raise capacity to 250 million litres per day, with nearly $9 billion in provincial GDP, $6.3 billion in labour income, more than $600 million in government revenues and approximately 99,000 person-years of employment over 15 years.
An independent 2025 study found a new greenfield regional water treatment plant would cost about 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,” said 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.
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