Details are still sketchy, but both parties have agreed a price rise lower than the one originally mooted.
A new steering committee will be created to oversee the company, and the county council will set up a commission to start fixing the many leaks. Galasa loses about half of its water through leaks.
More information is due to be published tomorrow after the agreement is signed. Both parties are hopeful that the measures will be sufficient to prevent the national government from liquidating the company.
The strike expected to start tomorrow by Galasa workers appears to have been suspended.