After the October 1963 opening of the Salmo–Creston highway over the Kootenay Pass, ferry fares were eliminated the following month. Built by Kootenay Ferry Builders at Nelson, the 80-vehicle, 250-passenger capacity MV Osprey 2000 was launched and entered service in 2000.

The Kootenay Lake Ferry in British Columbia, Canada, is free primarily because it is considered an essential extension of the provincial highway system. Specifically, it serves as a critical link for Highway 3A between Balfour and Kootenay Bay. Historically, the ferry began charging fares, but they were eliminated in 1963 following the opening of the Salmo–Creston highway over the Kootenay Pass. The government decided to keep the ferry free to ensure that residents and travelers have a reliable, no-cost alternative for moving through the region, especially since the alternative driving route around the lake is significantly longer and more arduous. As an "inland ferry" operated by the B.C. Ministry of Transportation, it is funded by taxpayers as a public utility, much like the roads and bridges that connect the rest of the province's mountainous terrain.