The federal government has announced it will fund half the cost of Steinbach's supplemental water supply system project.

The project will cost about $10 million. The federal government Tuesday promised to contribute $5 million, while the province will chip in $625,000. Steinbach city council has already given final approval to a bylaw to borrow up to $5.4 million.

"We have a lot of the planning already in place," says Mayor Chris Goertzen. "And so we look forward to putting this to tender early in 2018 so that we can make this project happen."

It is expected to be the city's most expensive capital project ever. The plant and reservoir will be built near the intersection of Park Road and Keating Road.

"A secondary water supply will not only improve the water quality throughout much of the city, it will also create opportunities for us to grow the city, especially towards the northwest quadrant," he adds.

The Steinbach project is one of 11 announced Tuesday in Manitoba under the Clean Water and Wastewater Fund (CWWF). This fund supports projects that provide communities with more reliable water and wastewater systems. These 11 projects are in addition to 47 projects previously announced under CWWF.

(Architectural rendering of new water treatment plant)

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Steinbach Preparing For Largest-Ever Capital Project