The Town of North Rustico has been awarded the Excellence in Water Stewardship Award by the Council of the Federation, which is comprised of Canada's provincial and territorial leaders.
The town is building a $2.7-million, state-of-the-art sewage treatment facility that is slated to begin operations in two months.
The old plant is at capacity and forced the town to stop allowing new building permits.
Tidal surges often flood the area, shutting down the oyster fishery and the treatment plant.
"Certainly the governments concern is tidal surges are going to get worse, not better. Ammonia is a very serious problem. This deals with that very efficiently," said Les Standen, chairman of the North Rustico Sewer and Water Utility Corporation.
"We met with the shell fishery and the department of fisheries, and it was nice to assure them that not only are we are meeting right now the guidelines, but we're going to surpass that. That helps to assure them that their fishery will stay healthy as well."
The new facility, located west of North Rustico, is paid for by three levels of government.
Standen does not expect sewer rates will be increased once the new plant comes on line.