Ontario Building Critical Infrastructure in Parry Sound-Muskoka
Province’s $12,759,123 investment will help keep workers on the job and promote economic growth
The Ontario government is investing $12,759,123 to help renew and rehabilitate critical infrastructure across Parry Sound-Muskoka. The funding will be delivered through the 2026 Ontario Community Infrastructure Fund (OCIF) as part of the government’s more than $200 billion capital plan to protect Ontario by building key public infrastructure that will strengthen the economy and keep workers on the job in the face of tariffs and economic uncertainty.
“Our government’s unprecedented commitment to funding towns and townships across Parry Sound–Muskoka is about more than dollars and cents—it’s about strengthening our communities, supporting families, and ensuring every resident has the opportunity to thrive,” said MPP Graydon Smith, Parry Sound-Muskoka. “By investing in these municipalities, we’re building a stronger, more vibrant future for the entire region.”
In 2026, Ontario will allocate $400 million in OCIF funding to help 423 small, rural and northern communities address critical infrastructure such as roads, bridges, water and wastewater systems. The minimum grant amount for municipalities will increase to $125,000 from $100,000. Funding allocations are based on a formula that accounts for the different needs and economic conditions of each community. Communities may accumulate funding for up to five years to address larger infrastructure projects.
“Small, rural and northern communities are essential to the growth and prosperity of Ontario,” said Kinga Surma, Minister of Infrastructure. “That is why we’re increasing the Ontario Community Infrastructure Fund’s minimum grant amount to provide predictability and stability for these communities and ensure they have the resources they need to thrive. With our record investments across all infrastructure programs, we’re driving an unprecedented wave of construction—highways, transit, hospitals, schools, and more—to make communities stronger, keep workers on the job, and drive economic growth for generations to come.”
The OCIF provides funding for local infrastructure projects in municipalities with populations under 100,000, rural and northern municipalities, as well as for Local Services Boards that own water or wastewater systems.
· Since 2018, the government provided $2.8 billion through OCIF to support small, rural and northern municipalities.
· Additionally, the province is investing $4 billion in the Municipal Housing Infrastructure Program (MHIP) for core infrastructure projects in growing and developing communities. This investment will help unlock even more homes in addition to the approximately 800,000 that have been unlocked with the previously announced pipeline of projects.
· Most recently, the government announced $50 million to help the District of Muskoka and $14 million to help the Town of Parry Sound build water systems that make new housing possible.
