The Arrow Lakes and the Slocan Valley sit in the heart of the West Kootenay. Highway 6 and Highway 23 link Nakusp, New Denver, Fauquier and the small lakeside communities between them. Free inland ferries cross the lakes at Galena Bay, Needles and Arrow Park. For years, this corner of BC has drawn visitors for its hot springs, lakes and quiet mountain towns. In 2026, several changes are lining up at once. Nakusp is planning to expand its hot springs. The Arrow Lakes Reservoir is refilling after two lean years. And a major new resort is opening up the road in Revelstoke. Below, we look at what is happening in the Arrow Lakes and Slocan Valley. Then we look at what it means for hospitality property in the area.

Nakusp Hot Springs Is Planning to Grow

On July 15, 2026, the Province announced nearly $86,000 for the Village of Nakusp to plan for growth at Nakusp Hot Springs. The money comes from its Rural Economic Diversification and Infrastructure Program. The work will study visitor demand and how much new accommodation the hot springs needs. It also covers the design of a new wastewater treatment system and upgrades to the village’s drinking water system. Both are needed before more accommodation units can be added.

The hot springs are owned by the community and sit about 12 km north of town. “For more than 50 years, the Nakusp Hot Springs have been a cornerstone of tourism and economic activity in our community and area,” said Nakusp mayor Tom Zeleznik. The Province expects the expansion, once complete, to create four full-time jobs, one part-time job and one seasonal job. For local businesses, more beds at the hot springs means more visitors in the area. Those visitors eat out, shop and stop in town.

The Arrow Lakes Reservoir Is Refilling

Water levels on the Arrow Lakes matter to everyone along the shore. In 2023, drought and Columbia River Treaty obligations left the reservoir unusually low, with exposed beaches and stranded docks. The past two years have been better, but still short of full. Last year, runoff came in at 79 per cent of normal. As a result, the reservoir peaked at 436.2 metres on June 19, 2025, about 3.9 metres below its licensed maximum of 440.1 metres.

The outlook for 2026 started stronger. By mid-March, the reservoir had begun its seasonal refill. BC Hydro forecast April to September runoff for the Canadian Columbia Basin at 112 per cent of normal. As always, BC Hydro cautions that actual levels depend on snowpack, weather and electricity demand.

The Columbia River Treaty: Paused, With Interim Rules

The long-term picture depends on the Columbia River Treaty with the United States. In July 2024, Canada and the U.S. reached an agreement in principle to modernize it. Under that agreement, the flood control storage Canada holds for the U.S. would drop by 60 per cent. It would fall from 8.95 million acre-feet to 3.6 million acre-feet, all of it in the Arrow Lakes Reservoir. Canada would also gain more control over its own storage. It could cut its coordinated power storage by up to 5 million acre-feet for BC’s own purposes, including community interests.

In March 2025, the U.S. paused the negotiations as part of a broad review of its international agreements, and the talks have not resumed. Until a modernized treaty is in force, the current treaty remains in place along with interim measures. For the Arrow Lakes, reservoir levels will stay worth watching, for recreation and for the towns along the shore.

Revelstoke’s Next Chapter, Up Highway 23

Nakusp is about 105 km south of Revelstoke on Highway 23. The route crosses Upper Arrow Lake on a 20-minute ferry between Shelter Bay and Galena Bay. Revelstoke is about to add a major new draw. Cabot Revelstoke is a new golf and ski resort at the base of Revelstoke Mountain Resort. Its 18-hole course opens for preview play in autumn 2026, with a grand opening in 2027. The resort will also include a 155-room mountain lodge with spa, wellness and dining, along with a 12-hole par-three course.

As Revelstoke draws more visitors, the Arrow Lakes become a natural side trip. They also offer a quieter place to stay. The drive south on Highway 23 leads straight to Nakusp, the hot springs and the lakes.

Nakusp Is Building

Nakusp is also investing in its own growth. The village issued seven development permits in 2025. It is also creating a new subdivision and servicing bylaw, with a focus on missing middle housing. An updated housing needs report was completed in December 2024. Meanwhile, the Nakusp and Area Development Board has applied for $500,000 for a community hub in the Old Fire Hall Collective building. It is also working with the village on workforce housing.

New Denver and Silverton: A Trail Link in the Works

On Slocan Lake, New Denver and Silverton are working toward a walking and cycling link between the two villages. It would follow the Highway 6 right-of-way. In May 2026, the project moved a step closer. The Slocan Valley Legacy Fund paid for feasibility work, and 3D terrain modelling of the slopes and routes is complete. Trails like this add to the Slocan Valley’s appeal. Cyclists and walkers already come for Valhalla Provincial Park, the lake and the historic mining towns.

What It Means for Arrow Lakes Hospitality Property

In short, the Arrow Lakes and Slocan Valley are a destination market. They are built on hot springs, lakes, trails and small-town character rather than any single employer. In 2026, the trends point the same way. Nakusp Hot Springs is planning more accommodation, the lakes are refilling, Nakusp itself is investing, and a major new resort is drawing visitors to Revelstoke, just up Highway 23. For an owner-operator, the appeal is a lakeside lifestyle with a business tied to a growing visitor base.

For more on activity elsewhere in BC, see our look at Valemount and the Robson Valley.

BC Commercial Group currently has properties listed in the Arrow Lakes and Slocan Valley:

  • Nakusp: The Leland Hotel, a heritage hotel with 21 rooms, a restaurant, a pub and a liquor store
  • Fauquier: Arrow Lake Motel, a renovated 11-room motel on Highway 6
  • New Denver: Valhalla Inn, a motel with a restaurant and pub on Slocan Lake

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