The Town of Wallkill is giving away 100 acres of land to Middletown.
The area sits along Route 78 and Mount Hope Road, where the old Middletown Psychiatric Center used to be located.
The land has been in dispute for years since it's located in both communities and no one had authority to touch it.
The property is largely filled with state-owned abandoned buildings, and the town wants to annex the land to Middletown. Officials hope to redevelop it to bring businesses, jobs and maybe a school to the area.
Taxpayers will have their say in a public meeting next month, and officials say they hope to have it wrapped up by the fall.
A three-judge panel has to sign off on the deal before it officially becomes law.