New residential and commercial development is at a standstill in the Village of Baddeck, N.S., after the water utility was overwhelmed by demand last year and the sewage system regularly sent only partially treated wastewater into the Bras d'Or Lake.

The village commission recently asked Victoria County for a $225,000 grant to cover the cost of immediate upgrades and a study on future capacity, but councillors countered with a $50,000 grant and a low-interest loan to cover the rest.

"To be frank,…