r and dispose of wastewater. Additionally, climate change, which is being experienced most acutely in Northern Canada, is having direct impacts on infrastructure in the North. Melting permafrost, erosion, and the unpredictability of the ice-road season are creating increased demands for investment in new and innovative infrastructure in order to adapt. At the same time, the unpredictability of climate change is making it difficult to identify when and where these investments need to take place. Heightened concerns about flooding and drought as a result of climate change are also affecting investment needs in water system infrastructure. For example, Infrastructure Canada recently committed CAD 120 million to expanding the Winnipeg Red River Floodway, which has saved the city from flooding over 20 times since it opened in 1968, but which in recent floods has been filled almost beyond capacity. There is also growing interest in developing innovative regional water distribution systems for rural and agricultural communities. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE In 2001, Canadians used 335 1/c/d, and at least half of this amount is "unnecessary and wasteful" (Environment Canada, 2005). Canada's per capita consumption is 65% above the OECD average; only the United States has a higher per capita consumption. As the 1987 Federal Water Policy observed, water is the most undervalued and neglected of Canada's natural resources. Municipal water use accounts for some 12% of all water withdrawals, slightly less than manufacturing at 14%. Although manufacturing has reduced overall gross water use through recycling, consumption rates have gone up as the economy has grown. In addition, at least 40% of discharges are untreated. Although much of the water infrastructure was built in the first half of the 20th century, the development of the country is reflected in the diversity 