The Penticton City Council has approved an amendment to their sewer service agreement with the Penticton Indian Band to add a new connection to facilitate the Skaha Hills development.
The city's contribution to the project will be $285,000.
"This has been in the works since 2008, and we have been working on establishing partnerships with the Penticton Indian Band in a number of areas," said Mayor Garry Litke. "It also just makes sense for them to tap into our existing sewage plant, rather than think about building their own."
The city and PIB staff have concluded their negotiation on the two agreements necessary to provide sanitary sewer servicing to the PIB/Skaha Hills development.
Skaha Hills, off Highway 97 at the south end of Penticton, will eventually consist of up to 600 homes and include a winery and vineyard, as well as other amenities.