Others here have already provided good advice.
40 lbs. is pretty light—I wish I could trim MY kit down that far! Too much beer and Scotch I guess ...
Having kayaked Georgian Bay, I'll echo the point regarding filtering water. It's very clean water up there and can easily be filtered as you go, requiring you to carry less water.
I esp. don't like the idea of carrying something as heavy as water (or even the self-inflating sleeping pad) on the decks, mostly for the poor balance. We usually carry only a day's worth (~4 liters), laid flat on the bottom of the stern compartment, directly behind the bulkhead; this keeps it low and near the boat's center-of-gravity.
As someone else mentioned, the inflatable pads offer a good compromise between weight and bulk:
Here's more info about packing for camping:
Whereabouts in Georgian Bay are you going?
Touring Kayak Paddles
Full Size Sail Rig
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