An Ontario First Nation near the shores of Shoal Lake plans to apply for a judicial review of Winnipeg's water sharing agreement.

The Iskatewizaagegan Independent First Nation is upset over the city's plan to sell water to West St. Paul and to extend services to the RM of Rosser.

The First Nation said it has sought legal action because the city refused to negotiate.

It previously threatened to dam up the lake if Ontario, Manitoba and the City of Winnipeg refuse to offer up $124 million per year.

It said the money is needed to replace lost rice crops and fish stocks due to flooding.