The City of Calgary has reached an agreement with the Town of Chestermere on how to deal with development issues on their shared boundary.

Recent annexations by both municipalities have resulted in a five-kilometre long border between the city and the town, which is about 20 kilometres east of downtown Calgary.

Under the agreement, Calgary and Chestermere will consult each other about developments in an area on either side of the border.

The deal also sets out a mechanism for resolving any disputes.

Mayor Naheed Nenshi said the agreement was needed to address a unique situation.

“It's the only part of this region where two urban municipalities share a boundary,” he said.  

“There's usually a county or a municipal district in between and so as a result, we have to be thoughtful with Chestermere about how we're growing on either side of that boundary and along that 17th Avenue southeast corridor.”

A council committee approved the agreement Thursday morning. It will be discussed at an upcoming full council meeting.

If the agreement gets final approval it will then be debated by Chestermere's town council.

Earlier this year, Chestermere councillors voted in favour of changing from a town to a city as of Jan. 1, 2015.