Some residents of Miltonvale Park are now able to hook up to Charlottetown's water and sewer system, and in exchange the city will be able to drill a new well in the community.
The deal took several years of negotiation. The city was concerned last year that it couldn't handle the extra demand on its water and sewer systems.
"The citizens are breathing a sigh of relief even though they're paying a bit more," said Hal Parker, chair of Miltonvale's planning board.
"I think all the residents down there that have wanted water since 2000 are going to be fairly quickly hooking on."
Sixty eight homes in Miltonvale Park can now hook up to Charlottetown's sewer and water systems. They'll pay city utility rates plus an extra 25 per cent because Miltonvale is outside Charlottetown's limits.
In exchange for hooking up Miltonvale Park, Charlottetown gets to build a well field in Miltonvale by 2015.
The water is badly needed. The Charlottetown system has typically been running at more than 90 per cent capacity, and a recent drought has had the city considering implementing a ban on activities such as washing cars and watering lawns.
Charlottetown utility manager Craig Walker calls it a win for both sides.
"We were now in a position that we could work with Miltonvale Park to mutually assist them as they assist us," said Walker.
The deal also includes hooking the provincial correctional facility at Sleepy Hollow to the city utilities in the future.