The Alberta government is injecting $396 million into the Fort McMurray area over the next three years in response to a new report that looks at how to deal with rapid growth in the oilsands.

The money will go toward health care, waste-water treatment and affordable housing, areas that have been struggling to keep up with demand as Fort McMurray has grown into a hub for oilsands development.

Premier Ed Stelmach announced the new funding Monday after the release of a report by former Alberta deputy environment minister Doug Radke that made 30 recommendations to address growing pains brought on by the oilsands boom.

"Not only will we provide the necessary infrastructure, but also ensure that people that move to Fort McMurray are going to have good clean water, they're going to have housing available," Stelmach said.

At the same time, the premier is adamant that there is no reason to slow down development in the oilsands, saying the government will be able to keep up with the demand for services.

Alberta Liberal Leader Kevin Taft said the money isn't a very productive start.

"This isn't a plan," he said. "This works out to about $130 million a year for the largest industrial zone — one of the largest — on the planet. It's disappointing."

Taft is hoping the government will realize the only way to get a handle on these growth pressures is to slow down industrial development.

The NDP continues to call for the province to go one step further, and put a moratorium on any new projects until places like Fort McMurray can catch up to infrastructure demands.

$200M for clinics, hospital helipad

More than $200 million will be spent over the next three years to build three new health clinics and a helipad for the regional hospital. Another $100 million is earmarked to help build a new sewage treatment facility and to upgrade the water treatment plant.

Finally, more than $50 million has been set aside to improve affordable housing, with the bulk of the money to build 300 housing units.

In the past, municipal leaders in the Fort McMurray area have suggested they need upwards of a $1 billion in new money to help keep up with the demand for services.