OTTAWA — The federal government is set to announce a major cash injection to lift native living standards that most recently shamed it into rebuilding the Kashechewan First Nation.

Ottawa will commit between $3 billion and $4 billion when Prime Minister Paul Martin meets with the premiers and aboriginal leaders in Kelowna, The Canadian Press has learned.

The money will be promised over five years when the first ministers meet in British Columbia on Nov. 24. Sources say it will be used to improve education, housing, health and economic development programs.

Ottawa will also formalize its promise to draft rules to set standards for drinking-water quality on First Nations. Indian Affairs has documented contamination risks on three-quarters of more than 600 reserves, yet there are no related federal regulations.

Critics called the planned announcements damage control as residents of Kashechewan continue to evacuate their northern Ontario reserve.

The Liberals have endured two bruising weeks in the Commons for not moving sooner to help the James Bay community and others like it.

But insiders close to related talks say a major investment was planned long before outraged voters saw photos of Kashechewan toddlers riddled with skin infections.

"After nearly two years of ongoing work with the national aboriginal leadership, we're very excited about the prospects of long-term change," said a senior government source who spoke on condition of anonymity.

Ontario Liberal Premier Dalton McGuinty knee-capped his federal cousins last week, saying Ottawa was "missing in action" as Kashechewan suffered.

Similar water troubles plague almost 100 other reserves across Canada, some of which have been under boil-water advisories for years.

The Assembly of First Nations urged Ottawa last week to commit at least $5 billion over 10 years to help wipe out native poverty.

Chiefs met Monday in Regina to discuss the much-anticipated first ministers gathering.

"We want to identify the four or five key areas that have been placed on the table to improve the quality of life on education, housing, economic development, health and relationships," said Chief Alphonse Bird of the Federation of Saskatchewan Indian Nations. "We also want to maximize the opportunity that is there to bring as much home as possible."

Conservative MP Jim Prentice, critic for aboriginal issues, says more cash isn't necessarily the answer.

"The elimination of aboriginal poverty is the most pressing social issue that we face as a nation," he said in an interview.

But Ottawa and the provinces must first figure out who should be paying for what - and who should be accountable when services break down, he added.

The federal government spends more than $8 billion a year to meet its historic obligations to aboriginal people. A mind-boggling cross-section of more than two dozen departments contribute.

New Democrat MP Charlie Angus, who led a media campaign that catapulted Kashechewan on to the Liberal agenda, says Ottawa is now trying to make up for "incredible federal neglect."

"Now they'll wave around the promises and talk about 'blueprints for change.' "

Angus says he's already hearing from chiefs who are being warned by Indian Affairs officials that Kashechewan's high profile will delay spending on their reserves.

"That's how Indian Affairs tries to frighten these communities into accepting less."