The new settlement comes after years of legal disputes over the future of the scenic Martis Valley in the heart of the Tahoe-Truckee region.

Stefanie Olivieri is with one of the environmental groups - the Mountain Area Preservation Foundation.

"The agreement shows that housing interests and open space interests can work together for a better community."

Under the settlement, developers will be allowed to build over 600 homes and a golf course in Siller Ranch but they’ll also have to set aside 120-acres of open space.

Ennius Cane with the development company DMB Highlands Group says they’ve come up with a way to do that.

"And that’s the creation of a funding source, initially a private conveyance fee of 1% that would be imposed on the sale and resale of homes within Siller Ranch."

The fee is expected to raise more than $54 Million over the next 25 years to purchase and preserve open space and habitat management and restoration.