Leaders in Bay St. Louis and Waveland have settled their legal dispute over who should annex a coveted stretch of land in Hancock County.

Under an agreement recently finalized, Bay St. Louis will receive the land from the eastern right-of-way of state Route 603 to the Jourdan River while Waveland will receive a parcel of land west of the Kiln-Waveland cutoff and the highway’s western right-of-way.

“Officials of both cities are pleased to end this litigation and look forward to working together on rebuilding their cities and Hancock County,” the statement said.

The two cities went to court in November 2004 to seek permission to annex hand along the highway, an area locals call the “business corridor to Hancock County.”

A chancery judge initially allowed Bay St. Louis to annex the land along the east side of the highway to the river, but Waveland attorneys petitioned for a new trial after Hurricane Katrina struck, arguing the storm changed the landscape and finances of both towns.

The cities signed a joint statement and called the settlement a “historic resolution.”