Alexandra's 312 new ratepayers will each receive a $200 remission on the Central Otago District Council's (CODC) recreation and cultural rate.
As residents in semi-rural locations close to Alexandra, they were formerly included in the Earnscleugh ward.
Now part of the newly-bounded Alexandra ward, they faced rate increases this year as a result of the council's draft annual plan.
The change in boundaries was prompted by the Local Government Commission.
Yesterday, the CODC announced a total $62,400 remission after discussions with its lawyers and auditors.
Earlier this week councillors had been unable to make a decision about the rating issue after receiving hundreds of submissions in opposition to the rate hike.
Central Otago mayor Malcolm Macpherson said the council was satisfied it had found an equitable solution to a "knotty" issue.
It means Alexandra ratepayers will receive a slightly lower benefit for one year than originally expected.
