Prime Minister Justin Trudeau announced the funding at a virtual press conference.
He says the money will be used to create a new water reservoir and water distribution system.
The city’s some 8,000 residents couldn’t drink their tap water for 60 days last fall after it was found to be contaminated with fuel.
The treatment plant has been off-line since January, when fuel was found in the water again.
The city had previously asked Ottawa for $180 million to fix its aging water infrastructure.
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