The Rural and Northern Communities Infrastructure Stream is a component of federal infrastructure funding specifically designed for communities with populations under 100,000, and all communities in the territories regardless of size. The stream recognizes that smaller, rural, and northern communities face unique infrastructure challenges including higher construction costs, limited tax bases, aging infrastructure, and greater distances. Federal cost-sharing under this stream is often more generous than for larger centres, with the federal government covering up to 60% of costs (75% in territories). Eligible projects include water and wastewater systems, roads, broadband, energy systems, and community facilities essential to quality of life in smaller communities.