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City of Terrace Seeks Federal Funding for $32 Million Water Supply Project Near Airport

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The City of Terrace is seeking federal funding to build a $32 million water distribution network at the Skeena Industrial Development Park near the Northwest Terrace-Kitimat Regional Airport. The city and the Kitselas First Nation lack the financial resources for the project, which is essential to attract large-scale developments.

Current water supply is insufficient for even small operations, affecting potential projects, including a hydrogen-powered power plant. The city is facing a legal dispute with Taisheng International regarding a construction deposit and is cautious about spending on water infrastructure. Terrace officials are lobbying for federal funding, and hydrology reports indicate sufficient water sources; however, a permitting process is required.

City of Terrace Seeks Federal Funding for $32 Million Water Supply Project Near Airport
Feb 5, 2026, 7:15 PM

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