Amherstburg council has agreed to apply to the Housing-Enabling Water Systems Fund for a second time.
The funding helps municipalities repair, rehabilitate and expand critical drinking water, wastewater and stormwater infrastructure with the aim of unlocking more housing opportunities.
The town applied to the province in April, but were informed in August their application was denied.
Amherstburg currently has a large plot called the Southeast Quadrant lands, which is located along the Lowes Side Road and Big Creek area, and is shovel ready for the project. The development would see nearly 1,500 residential units on the land.
The grant provides up to 73 per cent of eligible costs, with the town expected to pay the remaining costs for the project.
The total estimated cost for the project is $13.2 million. The town would be awarded $9.2 million if successful.
The remaining $3.9 million would be funded through the water reserve fund and development charges, some of which would be prepaid through signed agreements with developers.
-With files from AM800's Meagan Delaurier