Red Deer County has worked out a deal to ensure the fast-growing Gasoline Alley area has adequate water supplies.
Amendments to a water agreement with the City of Red Deer will provide up to 693,000 cubic metres of water annually — just over double its 2014 projected usage — to county residential, commercial and industrial ratepayers.
The deal ensures long-term growth for the county won’t be limited by water issues.
A 20-year agreement was signed by the county and city in 2004 to supply water to Gasoline Alley. It provided about 225,000 cubic metres last year.
However, businesses in the Clearview and McKenzie industrial areas were not included in that agreement. Those businesses were fed by wells.
Industrial growth in those areas is now putting a strain on available water supplies, so the county went to the city to negotiate for more water.
Beginning next year, the county plans to take its wells offline and rely entirely on city supply.
The change will immediately boost the amount the city supplies to the Gasoline Alley area to 340,000 cubic metres, generating about $136,000 in additional revenue to the city through charges to customers.