Kootenay Lake is the heart of the West Kootenay. Nelson sits on its West Arm, Kaslo and Ainsworth sit on the west shore of the main lake, and Crawford Bay sits on the East Shore. A free ferry links Balfour and Kootenay Bay, and it is the main way across the lake. Visitors come for the lake, the hot springs, the ski hill and the small-town character. In 2026, several changes are lining up. A new ferry is nearly ready. Whitewater is adding new terrain. And Nelson is building homes for its workers. Below, we look at what is happening around Kootenay Lake. Then we look at what it means for hospitality property in the area.

A New Ferry for the Longest Free Crossing

The Balfour to Kootenay Bay route is the world’s longest free scenic ferry that carries vehicles. The crossing takes about 35 minutes. For years, two ferries have shared the route, the MV Osprey 2000 and the aging MV Balfour. Now a new 55-car vessel is being built in Nelson to replace the MV Balfour.

On May 28, 2026, the Province named the new ferry the MV Kokanee, after the landlocked salmon native to Kootenay Lake. Commissioning was set to begin in spring 2026, with water trials later in the year. Substantial completion is targeted for December 2026, and the vessel is expected to enter service in 2027. The ferry is electric-ready, and the project budget is $117 million. The Province took direct control of construction in November 2025 to get the vessel finished. Once in service, the MV Kokanee will run alongside the MV Osprey 2000, adding capacity and reliability for residents, businesses and visitors.

Whitewater Adds 190 Acres

Whitewater Ski Resort, near Nelson, is known for deep powder and a laid-back feel. On September 15, 2026, the resort announced it is bringing Short Side inbounds for the 2026/2027 season. The project adds about 75 hectares (190 acres) and six new runs. The work included more than 50 hectares of glading, plus new road and two new ski ways. In total, Whitewater invested more than $1 million in projects and upgrades ahead of this winter. It is the latest in several years of terrain growth that followed the opening of the Raven Chair.

Nelson Is Building Workforce Housing

Like many tourism towns, Nelson has struggled to house the people who work there. In June 2026, construction began on Railtown Flats at 85 Baker Street. The six-storey building will have 55 units, and 16 of them will rent below market. The rest will be prioritized for local workers and businesses. The $31.55 million project is led by the Railtown Housing Society, created by the Nelson and District Chamber of Commerce. Completion is expected by fall 2027. For local employers, including hotels and restaurants, more workforce housing makes it easier to hire and keep staff.

The East Shore: Crawford Bay and Beyond

The ferry lands at Kootenay Bay, minutes from Crawford Bay. Crawford Bay is known for its working artisan studios along Highway 3A, including a forge, broom makers, potters and weavers. Kokanee Springs Golf Resort is a championship 18-hole course designed by Norman Woods in 1968. Beaches, trails and boating fill the summer, and the East Shore stays quieter than the West Arm.

Across the lake, Ainsworth Hot Springs has welcomed guests since the 1930s. Today it is owned by Yaqan Nukiy, the Lower Kootenay Band of Creston. Together with Nelson, Kaslo and the ferry ride itself, these places make Kootenay Lake a loop that visitors drive, stop and stay along.

What It Means for Kootenay Lake Hospitality Property

In short, Kootenay Lake is a destination market with steady upgrades. A larger, more reliable ferry service is coming in 2027. Whitewater keeps adding terrain, which strengthens winter demand around Nelson. Meanwhile, workforce housing is finally under construction. For an owner-operator, the appeal is a lakeside business in a region people return to year after year.

For more on the West Kootenay, see our look at the Arrow Lakes and Slocan Valley.

BC Commercial Group currently has properties listed on Kootenay Lake and in the West Kootenay:

• Crawford Bay: Crawford Bay Cottage and RV Park, a purpose-built, year-round RV park with full-service stalls and vacation cottages on 4.03 acres, minutes from the Kootenay Bay ferry
• Nakusp: The Leland Hotel, a heritage hotel with 21 rooms, a restaurant, a pub and a liquor store
• New Denver: Valhalla Inn, a motel with a restaurant and pub on Slocan Lake

Related Articles

• Nakusp and the Arrow Lakes: Hospitality Outlook
• Powell River and Texada: Sunshine Coast Hospitality Outlook
• Blue River and the North Thompson: Hospitality Outlook

Sources

• Castanet: Name officially delivered for new Kootenay Lake ferry being built in Nelson (May 28, 2026)
• My Nelson Now: Province steps in on Kootenay Lake Ferry project (December 4, 2025)
• Province of BC: Kootenay Lake Ferry Service Improvements, New Vessel
• Kootenay Lake ferry
• Whitewater: What’s New at Whitewater 2026/2027 (September 15, 2026)
• My Nelson Now: Nelson Railtown housing development breaks ground (June 12, 2026)
• Crawford Bay, British Columbia
• Kokanee Springs Resort
• Kootenay Rockies: Ainsworth Hot Springs Resort
• Nelson Kootenay Lake Tourism: Kootenay Lake ferry schedule