Carmichael Road Watermain Replacement Project

The Regional District of Nanaimo (RDN) is proposing to replace the watermain on Carmichael Road to help protect safe, reliable water service in the Nanoose Bay Peninsula Water Service Area. This page provides key facts about the proposed project, estimated cost, the approval process, and how to stay informed.

Project at a Glance

• Project Name: Carmichael Road Watermain Replacement
• Location: Carmichael Road, Nanoose Bay
• Purpose: Replace a watermain that has failed twice
• Estimated cost: $1,753,924
• Proposed funding: Municipal Finance Authority of British Columbia (MFA) borrowing over 10 years, subject to elector approval
• Vote date: October 17, 2026

Background and Project Need

The Carmichael Road watermain is part of the drinking water system that serves the Nanoose Bay Peninsula Water Service Area. This watermain has experienced two major failures, in 2019 and 2025, both of which caused significant road damage and emergency repair costs. Based on these repeated pipe failures, the RDN is proposing to replace the entire length of watermain on Carmichael Road as a long-term solution.

What Is Proposed

Temporary pavement patches were made during emergency repairs. The proposed project on Carmichael Road is to replace all of the watermain pipes and related utilities between Collingwood Drive and Cambridge Place, and to fully restore the curb, sidewalk, road base and pavement.

Proposed Project Location

Why This Project is Essential

• A long-term solution is required to mitigate the risk of further pipe breaks in this area.
• Public health is at risk from water system contamination each time there is a watermain break.
• Replacing the entire watermain will help avoid repeated road damage and additional repair costs.
• Asphalt heaving and erosion of the road base and adjacent sidewalk base materials were not fully addressed during emergency repairs.
• The RDN is liable for damage claims from this known watermain corridor.
• Correspondence has been received from the Ministry of Transportation and Transit indicating that the repeated pipe breaks on Carmichael Road pose a significant risk to the response times for Emergency Services vehicles (police, fire, ambulance).
• Island Health could mandate the replacement of the Carmichael Road watermain under the terms of their Operating Permit.
• Without borrowing funds from the MFA, property owners would face a significant increase in parcel taxes in the short-term in order to build up the reserve fund required to complete this watermain replacement within 5 to 10 years’ time.

Project Cost

The estimated watermain replacement project budget is $1,753,924. Based on the current MFA lending rate and a 10-year repayment period, the estimated cost would be approximately $86 per year per property, or about $681 as a one-time payment option. Final costs will depend on the borrowing rate and actual construction costs, but the borrowing amount would not exceed the amount approved by electors.

How Funding Would Work

Elector approval is required before the RDN can borrow funds for this project. A referendum is planned to be held with the general local election on October 17, 2026. Eligible electors in the Nanoose Bay Peninsula Water Service Area will be asked whether they support authorizing the RDN to borrow up to $1,753,924 and repay that amount over 10 years through taxation.

Community Information Session / Get Involved

Residents are invited to attend a community information session to learn more about the proposed project, ask questions and share feedback.

• Tentative Date: Monday, September 14, 2026
• Time: 5 to 7 p.m.
• Location: Nanoose Place, 2931 Northwest Bay Road, Nanoose Bay, B.C.

Stay Informed

• Check this page regularly for project updates, key dates and What's New as the project moves forward.
• Browse the document library to review reports, notices, letters, maps, photos and other background materials related to the proposed watermain replacement.
• Subscribe for email updates by clicking on "Stay Informed" if you would like to be notified when new information is posted or important milestones are reached.
• Review the FAQs for quick answers to common questions about watermain condition, project options, financing and the referendum process.
• If you have a question that is not covered here, please ask in the Question & Answers section. RDN staff will do their best to provide helpful information and share answers that may be useful to other residents as well.