First Nations and the government of Canada have reached an $8 billion agreement on drinking water warnings.

In two nationwide class-action lawsuits filed against the federal government by First Nations living under drinking water advisories, a potential settlement deal worth approximately $8 billion has been negotiated. The deal, which is still pending court approval, would provide $1.5 billion in compensation to those who have been denied access to safe drinking water and would reform Canada's First Nations drinking water legislation.

Around 142,000 people from 258 First Nations, as well as 120 First Nations, might be reimbursed. Depending on the final agreement's terms, additional persons may be eligible for compensation. Individual compensation will be assessed depending on how remote their villages are, how long they were subjected to a drinking water warning, and whether they had any adverse health effects as a result.

The plan also calls on the federal government to reaffirm its commitment to removing all long-term drinking water advisories on reserves. At a press conference today, Indigenous Services Minister Marc Miller announced the deal. Curve Lake First Nation Chief Emily Whetung, Tataskweyak Cree Nation Chief Doreen Spence, and Neskantaga First Nation Chief Wayne Moonias accompanied him.

If Ottawa fails to meet its promises under the settlement agreement, the provisions say that First Nations will be entitled to move to a new alternative dispute process with stringent timeframes that have yet to be established. The proposal would see the federal government commit at least $6 billion in previously announced funding to provide reliable access to safe drinking water on reserves, establish a First Nations Advisory Committee on Safe Drinking Water, assist First Nations in developing their own drinking water bylaws, and initiatives, and make Ottawa responsible for private water systems such as wells.

In addition, the proposal would establish a new $400 million First Nation Economic and Cultural Restoration Fund. Miller said in December that the Liberal government will be unable to fulfill its goal of removing all long-term drinking water advisories from reservations by the end of March 2021. According to Indigenous Services Canada, there are now 51 long-term drinking water advisories in 32 First Nations.

According to the main lawyer in the two lawsuits, the deal is the result of months of talks with the government.

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