Canada and Shoal Lake No. 40 settle Treaty 3 land claim for $17.45 million

Canada and Shoal Lake No. 40 First Nation have reached a $17.45-million settlement over seven islands promised under Treaty 3 but never set aside as reserve land.

Crown-Indigenous Relations and Northern Affairs Canada announced the agreement with the First Nation on October 15. The claim concerns the Garden Islands in Indian Bay, Shoal Lake, which cover about 280 acres.

The First Nation submitted its claim in 1991. Canada partially accepted it for negotiation in 2005 on the basis that an outstanding federal obligation existed for the seven geographically defined islands.

The settlement provides compensation to resolve the specific claim. It does not, by itself, mean the islands have been added to reserve. The federal department said settlements can support community priorities such as land purchases, infrastructure and economic development.

Shoal Lake No. 40 is an Ojibway or Ontario Saulteaux First Nation whose reserve spans the Manitoba–Ontario border.

Source: Crown-Indigenous Relations and Northern Affairs Canada, settlement announcement, published October 15, 2026.

Featured image: Illustrative stock photo of a wooded lake island, not the Garden Islands. Photo by Siddharth Patel via Unsplash; cropped and resized by West Island Blog.