Indian and Northern Affairs says it's currently reviewing a proposal that calls for further testing of a contaminated site in Couchiching First Nations.
High levels of dioxins and furans were first identified on a former sawmill property in 2007 that led to two families being relocated.
INAC Spokesperson Tony Prudori says additional tests are necessary to better identify the extent of the problem.
"Before we look into the mediation phase, we have to figure out exactly what's there, where's it's coming from, how big an area are we talking about," says Prudori. "Based on those, what the best way of dealing with it."
Prudori says INAC also paid for fencing to be placed around the known contaminated sites and to assist families who were moved from their homes for precautionary measures.