St. Stephen is receiving financial support from the provincial and federal governments for wastewater infrastructure upgrades.

On Monday, the two levels of government announced a combined investment of $2.5 million toward the $3.46-million project.

The money will support work to separate combined sewers and upgrade underground infrastructure on two streets.

Officials said that includes a section of School Street between Queen and Main streets, and a 425-metre section of Union Street.

St. Stephen Mayor Allan MacEachern said the funding will help the municipality address its infrastructure deficit.

“Our community will not only appreciate the newly paved streets, but they will also benefit from the improved and updated water, sewer and stormwater lines underground being more dependable and efficient,” MacEachern said in a news release.

“This will decrease costly repairs and avoid the wasted energy used to treat and pump stormwater at the treatment facility.”

The federal government is contributing nearly $1.4 million while the province is chipping in more than $1.1 million. The remaining $922,000 will be covered by the Municipal District of St. Stephen.