The average combined household income was $5,000, compared to $500 for most northern First Nations communities, according to studies commissioned by the Manitoba Development Authority.
"[4]: 33 [5]: 14–15 In 1967, the Manitoba Development Authority received assessment studies related to the inevitable relocation of the South Indian Lake community due to planned flooding caused by Manitoba Hydro's Churchill River Diversion (CRD) which would divert water into the Nelson River at Southern Indian Lake.
[6] A May 1967 report by Van Ginkel Associates "assessed the relocation site for the community and included a proposed plan which outlined economic, social, and educational programmes to be integrated along with the physical development of the region".
The Van Ginkel Associates report said that "relocation would necessarily negatively disrupt" the way of life of the South Indian Lake settlement.
"[7] The CRD raised the water level of Southern Indian Lake by 3 m (9.8 ft), which forced the community of 500 people to relocate.