Construction site preparation has begun for a new facility that will house both long-term care beds and community health services and will be adjacent to the existing Watrous Hospital. Saskatoon Regional Health Authority approved the contract for construction of the $14.4 million Watrous Health Service Redevelopment Project in September.

Health Minister Don McMorris and Arm River-Watrous MLA Greg Brkich took part in a ground-breaking ceremony on October 4, 2010. They were joined by local town and rural municipality officials and members of Saskatoon Health Region and Saskatoon Regional Health Authority.

The provincial government is contributing $9.1 million toward the project with a further $5.3 million coming from local municipalities and a fundraising campaign.
Construction is expected to be completed in 2012.