A major water main break in Calgary has exposed the financial fragility of local SMBs and ignited debate over city responsibility, sparking a larger question: what protections do small business owners really have when infrastructure fails?

For many small business owners, it only takes one unplanned disruption to threaten survival. In Calgary, the collapse of a major water main on 16 Avenue N.W. on 30 December 2025 did just that, turning a seasonal peak into a shutdown some say they won’t recover from.

The break triggered city-wide boil-water advisories, road closures and contamination notices. For Saud Abbasi, owner of Pizza Bae on Bowness Road N.W., it was more than a business problem. It was a life-threatening emergency.

“I decided to put myself in there and try to assist as many kids, as many families as I can,” Abbasi told CTV News, describing how he waded into freezing floodwaters to help evacuate people trapped in vehicles.

His car was eventually towed after emergency services arrived. But by then, the damage was already done. The next day, Abbasi learned his restaurant’s water was unusable without boiling, something he couldn’t accommodate on what should have been his biggest night of the year.

“I cannot shut my business on the busiest day of my pizza business,” he said. “I’m just new. It’s my baby business.” He estimates the loss at around $7,000, money typically used to cover staff wages and running costs through slower months.

Small business owners face growing risks from infrastructure failures

Others were hit just as hard, if not harder. Puneet Kaushik, who owns Nirvana Canna and Montgomery Vapes, said the rupture brought back painful memories of the previous year’s water-main failure, which had already wiped out most of his walk-in trade. “When it happened the second time, I’m honestly very worried,” he said. “Once a customer decides that they want to shop somewhere else, they don’t come back.”

That first failure, he said, cost him about 35 per cent of his customer base. Monthly sales fell by up to 80 per cent. “Without compensation, I know for a fact that I won’t last till the summer,” he said.

His insurance offered no relief. Because his stores technically remained open, his claim was denied. “I didn’t even bother going through insurance this time because I know the answer,” he said.

Christena Callaghan, owner of grooming business Canine Cuts, was bewildered by how close the latest break was to the previous one. “I was completely shocked to hear that this had happened, like not even a block and a half away from the first one,” she said. Her business hasn’t lost water access yet, but the uncertainty hangs over every booking. “I don’t know how we would even begin to work around stuff like that,” she said.

As owners like Callaghan brace for the next disruption, the Calgary city council is facing calls to act. Mayor Jeromy Farkas said future infrastructure projects may be required to include business continuity funding, something that could offer targeted support to businesses affected by delays, overruns or failures. “We have to look at all options on the table as a council in terms of better supporting our businesses,” Farkas said.

No program has been confirmed yet, but early conversations have gone beyond symbolic gestures. “I know for all of us as a council, we want to give much more than just moral support,” he said.

For Callaghan, the ask is simple: accountability and action. “I think there should be a compensation package, absolutely,” she said. “This is their problem that was overlooked for years.”

Farkas confirmed that an independent panel had been brought in to examine what went wrong. The panel is expected to outline exactly how oversight failed, and what must change to stop it happening again. “Calgarians deserve to know what went wrong with our essential water infrastructure,” he said.

Until then, council members have been urging Calgarians to support affected local businesses. “That’s our strong push at this time,” Farkas said. But for many operators, the help they need isn’t another rally or flyer, it’s direct financial relief.

Why cities need to budget for business survival, before the next break

This isn’t just a Calgary story. It’s a nationwide warning. Critical infrastructure can, and does, fail. And when it does, small businesses often carry the financial risk. They are, after all, the ones located next to the dig sites. They are the ones losing foot traffic when roads close, and they are the ones who can’t afford to be shut for a week, let alone a season.

Until a formal program is confirmed, operators like Abbasi and Kaushik remain in limbo. They’re covering losses, watching customers vanish and waiting—again—for someone at city hall to show up. Because when local businesses break, cities crack with them.