Though the impacts of Manitoba’s hydropower go unnoticed by many, they can be devastating in the province’s Northern Indigenous communities where the majority of hydropower comes from.

By flooding rivers to create reservoirs, thousands of square kilometers of land has been submerged. This leads to the release of methane as vegetation decomposes underwater; the loss of unique and valuable wildlife habitat; and more (see above). Reservoirs are used as water storage, meaning the flow of rivers and even lakes is controlled by Manitoba Hydro instead of natural seasonal processes. Fluctuating water levels are pushed to extremes in often failed attempts to maximize water flow and therefore, profitability. Policies such as the Augmented Flow Program, allow for this unnatural water fluctuation causing vast erosion and destabilization of thousands of kilometers of shoreline.

The Understanding Systems series exposes how colonial laws and processes—like the Water Power Act, Manitoba Hydro’s operating mechanisms, and Manitoba’s environmental assessment system—have shaped unequal relationships with land and water. Across all parts, the series shows how these systems marginalize Indigenous communities and stresses the need for transformative, community‑centered, and accountable approaches to protect people, lands, and waterways.

Manitoba’s hydro dams continue to operate under an outdated licensing system that allows the Province to issue endless short-term extensions without proper environmental review or meaningful engagement with Indigenous Peoples. With major hydro licences set to expire in 2026, this is a critical moment to demand a fair, transparent, and accountable process.

Send a letter to the Province of Manitoba calling for hydro licensing reform that respects Indigenous rights, environmental protection, and public accountability.

Completed in 1976, the Churchill River Diversion (CRD) redirects about 75% of the Churchill River’s natural flow, against nature into the Nelson River to boost hydroelectric generation.

CRD is a major part of Manitoba Hydro’s northern system, involving structures like the Notigi Control Structure and the Missi Falls control structure and an artificial channel, called  the South Bay Diversion Channel. A channel blasted out of the Precambrian Shield.

Originally authorized in 1973 through an “Interim License” under the Manitoba Water Power Act, the CRD was meant to undergo a full review before final licensing. That never happened. For 50 years, Hydro has operated under deviations of this Interim License and not the original terms.

But the major problem isn’t just the outdated license—it’s the Augmented Flow Program (AFP). The CRD Final Licence issued in 2021 is the AFP with the mitigation clause intentionally removed. The terms of the Interim Licence have been ignored. A Licence to Destroy!

The Lake Winnipeg Regulation (LWR) is a flow regulation project that increases Lake Winnipeg’s outflow capacity by approximately 50 percent. Manitoba Hydro was granted allowance to control the water level and water flow of Lake Winnipeg, Playgreen Lake, and Kiskittogisu Lake. The main goal of this project is to increase power generation along the Nelson River, and Manitoba Hydro does this by reversing seasonal flows as power demand is highest in winter, but water flows are greatest in spring. It is also said to help reduce flooding and drought.

Infrastructure

Infrastructure for this project consists of the Jenpeg Control Structure, which regulates the outflow of the lake through the west channel of the Nelson River, Kiskitto Inlet Control Station at the outlet of Kiskitto Lake, and Black Duck Control Station north of Kiskitto Lake. As well as four diversion channels which increase the outflow capacity of the Lake Winnipeg: Lake Winnipeg to Playgreen Lake, Playgreen Lake to Kiskittogisu Lake, a by-pass channel at Ominawin Rapids, and later the Ksipachewuk Channel Improvement. 

Project Authorization

Manitoba Hydro’s use of Lake Winnipeg as a natural reservoir for hydroelectric development was authorized in 1966, after financial investigations were carried out by the federal and provincial governments. Further authorization for the project was issued through an Interim License 1970 and a Supplementary Interim License in 1972 under the Manitoba Water Power Act. Following the completion of the Jenpeg Station in 1976, operation of LWR began. In 2021, a final license was issued that expires August 1^st, 2026.

Lack of Assessments

After nearly 50 years of operation, there has been no environmental assessment process carried out in respect to the LWR project, minimal consultations with affected Indigenous communities, and a general disregard for public concern. The combined effects of activities related to the LWR project pose fundamental challenges to the maintenance of a healthy, functioning ecosystem in and around Lake Winnipeg.   

License Renewal

In July 2022, Manitoba Hydro submitted the Renewal Application for an extension of its rights under the final license. This License renewal would extend the commercial use rights for the LWR for up to 50 more years, which would intensify the impacts of this project. 

Impacts of the Lake Winnipeg Regulation

On February 20th in 2026, Norway House Cree Nation held a press conference calling on the Province of Manitoba and Manitoba Hydro to take responsibility for the devastating impacts of the Lake Winnipeg Regulation.

Decades of environmental damages from the Lake Winnipeg Regulation system have reshaped Playgreen Lake. Now, backed by new scientific studies, Norway House Cree Nation has filed a lawsuitagainst Manitoba Hydro, the Province of Manitoba, and the federal government. The lawsuit challenges the Lake Winnipeg Regulation system built in the 1970s, including the 2-Mile and 8-Mile channels that direct water north to hydroelectric dams.

Chief Larson Anderson, Norway House Cree Nation is speaking at the Norway House Cree Nation’s Press Conference. (The Environmental Conservation Lab, February 20, 2026)

Norway House Cree Nation hired DHI Water & Environment, Inc. to study the impacts of the Lake Winnipeg Regualtion system in Playgreen Lake. The key findings from DHI’s study include: i) 2-Mile Channel is the main problem; ii) Playgreen Lake functions like a sediment trap; iii) Climate change acts like a cumulative stressor that could increase sediment inputs; iv) Infrastructure-based interventions offer only limited reductions of sediment desposition

Learn More about the Impacts of LWR on Playgreen Lake

Since 1986, Manitoba Hydro has operated under the Augmented Flow Program (AFP)—an annual deviation from the terms of the original 1973 Interim License for the CRD.

It began in 1978, when Manitoba Hydro requested permission to test expanded water level operations. By 1986, these tests were formalized into the AFP, quietly replacing the original license terms without any consultation or consent.

Each year since then, the province has legitimized Hydro’s expanded operations through brief letters of authorization—often just a few sentences long with a rubber stamp. These approvals allow Hydro to:

• Draw down South Indian Lake by 4.5 feet annually (instead of the 2-foot limit in the Interim License)
• Flood the lake an extra half foot above original limits

The consequences have been devastating:

• Over 800 square km of boreal land permanently flooded
• 3800 km of shoreline destabilized, with severe erosion
• Critical fish habitat destroyed, preventing natural migration routes
• Collapse of Culturally and Economically significant fish populations, including Lake Whitefish and Lake Sturgeon
• Long-term impacts to Indigenous livelihoods, culture, and land-based practices

Communities like O-Pipon-Na-Piwin Cree Nation and Tataskweyak Cree Nation have been hit hard. South Indian Lake was forcibly relocated in the 1970s, and the homes provided were unfit for the northern climate. Community members report deep cultural loss, disruption of traditional livelihoods, and intergenerational trauma.

There has never been a public hearing, scientific assessment, or community consultation about the AFP. Civil servants in Winnipeg approve these changes without ever visiting the impacted communities.

Watch Manitoba Hydro Is Water Drunk to learn more.

The video features interviews with Les Dysart who shares his frustration and anger with Manitoba Hydro’s lack of communication and consultation with them. He accuses Manitoba Hydro of being “water drunk” and “greedy”, ignoring their concerns and rights for over 40 years.

The video features interviews with Les Dysart who shares his frustration and anger with Manitoba Hydro’s lack of communication and consultation with them. He accuses Manitoba Hydro of being “water drunk” and “greedy”, ignoring their concerns and rights for over 40 years.

Manitoba Hydro’s Interim License was supposed to trigger a formal review process. It didn’t. Instead, Hydro has expanded its operations under the same outdated license for half a century—without updating any legal, environmental, or community oversight frameworks.

The AFP, now essential to Hydro’s operations, has never undergone environmental or financial scrutiny. Every year, the government rubber-stamps it without public notice or transparency.

Indigenous communities—those most impacted—were never consulted. Their treaty rights and jurisdiction over lands and waters have been routinely ignored.

What Does This Mean?

For nearly 50 years, Manitoba Hydro has been allowed to operate a massive hydroengineering project outside of legal and scientific oversight. The province’s refusal to conduct proper licensing and environmental reviews has made it nearly impossible to hold Hydro accountable.

Meanwhile, Indigenous nations are left out of decision-making and forced to live with the consequences—ecological destruction, economic collapse, and cultural loss.

Watch Augmented Flow: License to Destroy to learn more.

Boating around South Indian Lake with his dad and son, Les Dysart points out the ravaged shoreline. Waterlogged debris lurks dangerously just below the surface. The lake is treacherous for the O-Pipon- Na-Piwin Cree nation (South Indian Lake) who were once one of the wealthiest lake fisheries in North America. Elders and community members describe the turbulent engineered flooding that has shut down the fishing industry, drowned their homes, washed away historical and sacred sites and forced relocation.

Meanwhile, Indigenous nations are left out of decision-making and forced to live with the consequences—ecological destruction, economic collapse, and cultural loss. Community members share their stories:

In 2026, Manitoba Hydro’s license for the Churchill River Diversion (CRD) reaches a major milestone—a project that has caused some of the most widespread environmental and cultural damage in Manitoba’s history.

For nearly 50 years, Hydro operated under an Interim License, never subjected to proper review, environmental assessment, or community consultation.

In 2021 the current CRD Final Licence was granted with the clear and vehement objection of O-Pipon-Na-Piwin Cree Nation and without meaningful and proper Sec.35 consultation. It should not have been granted and should not be allowed to continue without meaningful consultation with the required accommodations and meaningful reconciliation.

The communities are concerned that both Manitoba Hydro and the Government of Manitoba are laying the ground work for status quo and more harm.

Manitoba and Manitoba Hydro have had 50 years to prepare a proper and meaningful licensing process, they are not ready and may grant Short Term Licence Extensions. Short Term Licence Extensions should be viewed as admissions of failure and grant permission for more harm, unchecked!

This move risks locking in another 50 years of unchecked operations—deepening the damage to boreal ecosystems, fish populations, and Indigenous territories and Culture.

Communities are still living with the consequences.
They deserve a voice.
The public deserves transparency.
And the government and Manitoba Hydro must be held accountable.

Donate to the legal fund: Legal Justice for South Indian Lake

After enduring nearly 50 years of harm arising from a massive hydropower project constructed against their wishes, O-Pipon-Na-Piwin Cree Nation (OPCN), along with two related community associations, filed a statement of claim in Manitoba Court of King’s Bench on May 19, 2023.

Click here to learn more about the statement and support their fight.

The Province has renewed several Short‑term Extension Licences set to expire in 2026. While the updates include new requirements for community engagement, there’s still a need for clearer guidance and genuine collaboration with communities. Let’s break down what meaningful community engagement should look like—and why it matters.