Thousands of Montrealers lined downtown streets Monday evening for a parade and a waterjet show to inaugurate the new Place des festivals.

Supporters of the arts say the $40 million dollar outdoor plaza, paid for by all three levels of government, is a long-awaited dream come true.

The main event at the plaza was a dazzling performance designed mostly to show off the facility's 235 individually-controlled and light-enhanced water jets.

The Place des festivals is the first phase of a plan to revitalize Montreal's entertainment district centred around Place des Arts, which might one day be replaced with a new concert hall.

Mayor Gerald Tremblay says the project is a major boon to the city.

"It's a place where we will show the world that we are a cultural metropolis," he told reporters on Monday.

"(It) will have a major influence on our culture."

Stevie broke it in

Though the official inauguration took place on Monday, the Place des festivals actually debuted earlier this summer when pop superstar Stevie Wonder performed before 100,000 people at the Jazz Festival.

The venue was criticized at the time for being too small, but the head of Tourism Montreal says it's large enough to help cement Montreal's reputation as a leading arts centre.

"I think anything which beautifies the city is important for visitors," said Charles Lapointe.

Winter use

The high-tech sprinklers are primarily for use in summer, but the Place des festivals will be used as an ice rink in the winter.

Next year the city hopes to inaugurate a new promenade for artists and by 2011 they plan to spruce up St. Catherine street around St. Laurent blvd.