The City of Steinbach has received preliminary word on its application for a $10 million dollar infrastructure grant to help develop a second water source for the city. Mayor Chris Goertzen says they have been notified they will get $2.5 million dollars for now.

"We asked for $10 million and presently we received funding for the initial $2.5 million. We're very pleased to have that funding but obviously this is a first step in a multi-phase process. We're waiting for clarification on this"

Goertzen says this initial funding is based on 50 percent of the money coming from the federal government, 25 percent from the provincial government and 25 percent from the city.

"We're very pleased with the federal and provincial government coming up with 75% of the initial $2.5 million and we look forward to continuing that program for the rest of that project."

The city is developing a second water source and treatment plant near the corner of Park Road and Keating Road to accommodate future growth.