Red Deer County and the Town of Penhold have come to an agreement that will help both municipalities grow.

Penhold has requested to annex 8 quarter sections of land located Northeast of their boundaries from the County, that will help the town grow for the next 20 years.

Mayor Dennis Cooper says the County would then get to develop a portion of land next to Highway 2, which will also benefit the town's growth.

"The County will be developing land around Highway 42, and the QE2. So that will be more commercial and industrial, and as they develop that of course people need a place to live, and they'll be right next to Penhold. So it'll give a certain amount of convenience there."

Part of the land Penhold will be receiving will have Waskasoo Creek passing through it, so a 2 mile long park will be made.

Both parties have been working on an Intermunicipal Development Plan, that will help Penhold grow it's boundaries on the Northeast end, and the County theirs near the QE2 and Highway 42 as mentioned.

Cooper says the land they're aquiring will be right next to one of their most used ammenties.

"Our multiplex has started to become sort of our central hub for our whole community, and with that we're having properties built all around it. The High School's there, and then we're developing a number of sports fields around it. It's definitely going to be easily accessible for all residents."

Developers will be looking to bring some residential and industrial area's to that corner of the community.