Water treatment capacity impeding economic development in southern Alberta

EDMONTON — A year-long study funded by the Alberta Land Institute and led by researchers out of the University of Alberta and University of Lethbridge found a lack of water treatment capacity in the region is an issue for development of the food processing sector.

The study involved interviews with elected officials and economic development agency directors representing all municipalities in the St. Mary River Irrigation District (SMRID).

Development of the food processing sector is a priority within the region. Since food processing activity uses large amounts of potable water, water needs to be both available and treated.

“Lack of water treatment capacity is well-known in this region, so this finding was not a surprise”, says Lorraine Nicol, senior research associate in the Department of Economics, University of Lethbridge, and lead researcher on the project.

Municipalities are currently studying and taking steps to increase water treatment capacity. But changes will take time.

“What this study underscores is how harmful the lack of water treatment capacity is having on economic development in the region right now.”

Nicol says that water treatment as a constraint was repeatedly stressed by interview subjects.

“This was a consistent finding across the region,” says Nicol.

Although a freeze on new water license allocations in the region has existed since 2006, interview revealed that water availability is not an issue.

“There are ways to redistribute water, and these are working,” says Nicol.

Irrigation Districts, like the SMRID, have amended water licenses for ‘other purpose uses.’

“This is critical for providing water for non-irrigation purposes, like food processing” says Nicol. “This finding was very positive in that the SMRID is viewed as a trusted water supplier and partner in economic development,” she says.

Nicol has studied water and agriculture in southern Alberta for more than 20 years.

The Study

The research led by University of Alberta Agricultural Economist Sven Anders, and also co-authored by Christopher Nicol, Professor of Economics, University of Lethbridge, investigated whether water availability constitutes a widespread constraint on economic development in southern Alberta.

Three sub-basins of the South Saskatchewan River Basin have been closed to new water license allocations since 2006. Irrigation Districts hold the majority of licensed surface water volumes in southern Alberta.

To address water availability, water redistribution mechanisms have been put in place including a water license transfer system and the ability for irrigation districts to amend water licenses for “other purpose uses” (OPU), to allow for licensed water to be provided for non-irrigation purposes.

According to Nicol, additional OPU-designated water by the SMRID is available, over and above what is currently being utilized. This is important for development of “Canada’s Premiere Food Corridor” initiative which is a collaborative network of municipalities focused on increased food processing activity in the region.

The paper is published in the journal WIT Transactions on Ecology and Environment, and was presented at the Environmental and Economic Impact on Sustainable Development 2026 Conference held in Bristol, England, June 9-11.

About the Alberta Land Institute (ALI)

Based out of the University of Alberta’s north campus in Edmonton Alberta, the Alberta Land Institute is an independent research institute that funds and conducts land-use related research in order to provide tools for land users and policy makers to balance all the competing interests for Alberta's land base. In just over ten years of operation, the institute has worked with policy makers, organizations, non-profit agencies and more, and has contributed more than $2 million dollars in funding for high quality, peer reviewed research.

ALI’s goal is to connect research and policy for better land management of Alberta’s changing landscape.

For more information or to schedule an interview, please contact:

albertalandinstitute@ualberta.ca