The P.E.I. government is creating two new tax-free zones to attract new business to rural areas of the Island.

New zones are being created in Poole's Corner in the eastern part of the province and in West Prince, on the western tip of the Island.

Other tax-free zones are in Slemon Park, where the aerospace industry is located, and the Souris Food Park, which is home to AgraWest, a potato dehydration plant.

Under the agreement, new businesses setting up shop in one of the zones won't pay corporate or property taxes during the critical first years in operation.