Residents in Creston, B.C., have reached a compromise in ongoing negotiations with Labatt's Columbia Brewery over the expansion of the company's brewery in the middle of a residential neighbourhood.

Earlier this year, Labatt proposed to build a rail line spur outside the brewery to accommodate four train cars full of syrup and malt, key ingredients for brewing beer, specifically Kokanee and Budweiser.

The brewery, which is the largest employer in Creston, is located in a residential neighbourhood and some locals felt the proposed rail line was too close to their homes, so they took their case to city council.

"I mean, it's not that we wanted to shut the brewery down or something to this effect. We don't mind the expansion. We just didn't want a spur line right outside our bedroom window," says Betty Fraser, a resident of Creston.

At a special council meeting, all parties agreed to a deal that would require the rail line spur to be built at least 15 metres from people's homes.

Fraser says neighbours will still have to put up with vibrations and noise from the rail cars, but most are happy to see the town's economic lifeline continuing to grow.

With files from the CBC's Bob Keating