Waterfront East LRT project, aimed at connecting downtown with growing waterfront communities.
A three-way agreement between the City of Toronto, the Province of Ontario, and the federal government will see each contribute $1 billion toward the project, bringing total funding to $3 billion.
Mayor Olivia Chow welcomed the deal, saying the new line will help unlock development in the Port Lands area, including new housing, parks, and business opportunities.
The planned route will run south from Union Station to the waterfront, then east along Queens Quay and Cherry Street, eventually reaching Villiers Island — a rapidly developing area. It will also connect with existing streetcar routes near the Distillery District.
Ontario Transportation Minister Prabmeet Sarkaria confirmed that while the province is contributing funding, it will not cover any potential cost overruns, leaving the City of Toronto responsible for managing additional expenses.
Once completed, the Waterfront East LRT is expected to serve more than 150,000 residents and generate around 50,000 daily trips, significantly improving transit access in one of the city’s fastest-growing regions.