The province is investing $3,720,537.12 to help the construction of new homes in Hanover and Owen Sound.
The funding is being put forward from the first round of the Housing-Enabling Water Systems Fund.
MPP for Bruce-Grey-Owen Sound Rick Byers says the finding will help develop, repair, rehabilitate and expand drinking water, wastewater and stormwater infrastructure.
Hanover with receive $1,961,875 for the Re-rating of the Wastewater Treatment Plant.
Owen Sound will see $1,758,662.12 for 32nd Street East at East Bayshore Road for Watermain Improvements.