The Watson Lake lagoon is one step closer to getting its much-needed upgrades after a funding announcement earlier this month.

Cam Lockwood, the town’s chief administrative officer, said the funding will play a small part in the bigger picture.

“It’s sort of an incremental progress as to where we’re at,” he said, adding it’s a part of the overall planned upgrades to the site.

The territorial and federal governments teamed up to announce an investment totalling just over $2.3 million, with Ottawa pitching in just over $1.7 million and the territory providing more than $580,000.

It falls under the Clean Water and Wastewater Fund, a federal program that carries with it a $2-billion price-tag.

It’s aimed at providing short-term assistance to projects that promote the rehabilitation of water treatment and storm water treatment systems, among other things.

The territorial government said it intended to move the lagoon project forward during the first five years of the New Building Canada Funds, which was announced alongside the country’s Economic Action Plan in 2013.

The Yukon Infrastructure Plan, released in 2015, listed the wastewater lagoon and sludge drying bed in Watson Lake as a possible project

The town’s mayor, Justin Brown, said the investment would “allow our community to gain greatly needed capacity in our waste water treatment facility” in a release.

While some of the funding could be used toward purchasing and installing cover material and fencing around the site, the CAO said most if not all of the money would go toward securing contracts through the government’s infrastructure branch.

The tender for those should be out soon, he continued, noting that the site is still undergoing site assessment.

Preliminary work like fencing and preparation for drying beds is set to be wrapped up this year, while he expects the main construction work to begin next year.

Lockwood added he is happy with the announcement, saying it comes just in time for summer as tourists begin to flock to the town.

Yukon MP Larry Bagnell said the infrastructure project “is a good example of the federal and territorial governments working together to ensure that residents have access to modern and reliable wastewater services.

“Investments like the one announced in the Town of Watson Lake help ensure that northern communities remain strong and provide a high quality of life, while also contributing to cleaner waterways and a healthier environment,” said Bagnell.

He was speaking on behalf of Amarjeet Sohi, the federal minister of Infrastructure and Communities.

Community Services Minister John Streicker said the territorial government “is committed to the betterment of Yukoners’ lives through community- based infrastructure improvements such as this one.

“Watson Lake’s new sewage lagoon is the latest addition to the wastewater infrastructure we are modernizing as we fulfill our commitment to Yukoners, ensuring we all have access to vibrant, healthy, safe communities throughout the territory.”