The townsite of Grindrod was surveyed in 1909. In 1977 the provincial health department blocked any new development in the unincorporated community because existing wells were in danger of being contaminated by septic tanks. Following a request from the residents, lots were amalgamated and streets closed in order to accommodate larger lot sizes for new septic fields. In 1983 a community water system was proposed by the North Okanagan Regional District. In 1992 the issue was re-examined when the water in Grindrod School was declared unfit for human consumption. North Okanagan Regional District applied for and received a federal/provincial infrastructure grant to build a community water system with an intake in the Shuswap River. The project was delayed when the province requested a water treatment plant with filtration and disinfection, bringing to the total cost of $650,000. The school district through the provincial government provided some funding, with the local residents picking up the remaining costs. The Grindrod water system was completed in December, 1997.