Petrolia will continue providing water to Enniskillen for the next 20 years.
The negotiations started after Enniskillen began talking with officials from the Lambton Area Water Supply System about the possibility of buying water from LAWSS instead of Petrolia.
LAWSS offered a deal which would have saved Enniskillen ratepayers $309,000 per year.
But the Town of Petrolia offered to lower its rates in an effort to keep Enniskillen as a local user.
The deal lowers the rate Enniskillen pays Petrolia for its bulk water from $1.59 per cubic meter to $1.31 per cubic meter with an index for inflation each year.