The federal and Alberta governments have signed an agreement to allow municipalities across the province to access hundreds of millions of dollars to invest in water and infrastructure and spur new housing developments.

Prime Minister Mark Carney stood alongside Alberta premier Danielle Smith Wednesday in Red Deer to announce the Canada-Alberta Housing Infrastructure Fund Agreement.

The agreement will allow Alberta municipalities to access a $510 million slice of the Canada Housing Infrastructure Fund (CHIF) over eight years. The fund is for housing-enabling water and wastewater infrastructure projects.