Although hydraulic fracturing‐induced earthquakes have been widely reported in Alberta, Canada, only one seismic cluster (the Cordel Field) has thus far been linked to wastewater disposal (WD). In this study, we report a statistically significant spatiotemporal correlation between recent earthquakes and nearby WD wells near Musreau Lake—the second disposal‐induced earthquake swarm in Alberta. This newly occurred swarm contains five events with local magnitudes from January 2018 to March 2020, forming into three tightly spaced clusters. The refined locations and focal mechanisms suggest a ∼10 km long northwest–southeast‐trending rupture along the northern Rocky Mountains that developed over time, during which both poroelastic effects and static stress transfer played key roles. Through a statistical analysis of all reported induced earthquake clusters in the western Canada sedimentary basin (WCSB), we propose a linear predictive relationship (i.e., the “Interpolated Strike Orientation” model) between fault rupture direction and fault distance to the Rocky Mountains. This observation‐based model, which is supported by both the focal mechanisms of the natural earthquakes and the nearby northwest‐striking geological faults, is a new and useful reference for future assessments of seismic hazard in the WCSB.