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City facing $20.4-M budget shortfall but finance chairman ‘not pressing the panic button yet’
3 minute read Preview Monday, Jun. 8, 2026Fifty years ago this June, Manitoba Hydro destroyed one of the province’s finest lakes, its fourth-largest, when it began operating a newly constructed control structure at Missi Falls, the outlet where Southern Indian Lake flows into the lower Churchill River.
This raised the water level of the lake, creating a reservoir and diverting the flow southward via the Rat and Burntwood River systems to increase power output at its hydroelectric generating stations along the Nelson River.
More than 3,500 km of shorelines on the lake alone were permanently inundated, and along with its adjacent waterways, an area of 840 square kilometres was flooded. The entire Indigenous community of South Indian Lake had to be moved to higher ground to avoid the flooding, and the island community of Nelson House was irreparably harmed.
The Churchill River diversion project had a disastrous effect on the natural environment and the Indigenous people whose subsistence and way of life depended on the lake.