Fuquay-Varina will not annex 1,000 acres along its northern border now that the town has reached a new annexation agreement with its neighbor to the north, Holly Springs.

The new agreement — reached Tuesday at separate town meetings — is much like the previous one it replaces. The agreement sets a boundary through unincorporated areas between the two towns that keeps them from approving voluntary or involuntary annexations on the other side of a designated line.

The new agreement is different, however, in that certain residential areas split by the old line — such as subdivisions — are now completely on one side or the other, said Mark Andrews, a Holly Springs public information officer.

Fuquay-Varina had been in a hurry to annex 1,000 acres encompassing 500 homes bounded on the east by Sunset Lake Road and on the west by by Bass Lake Road, before the old agreement had an option to expire next year.

With the new agreement in place, Fuquay-Varina has rescinded its annexation request.

The old agreement, made in 1989, could have ended next year. That agreement was made for 20 years, but could have ended at the 10-year mark by either party.

The new agreement also lasts for 20 years, but unlike the old can end at a five-year mark.

Also unlike the old, it includes a water service agreement between Holly Springs and Fuquay-Varina. For the first five years, Fuquay-Varina could use a Holly Springs line to help move Fuquay-Varina water to parts of Fuquay’s utility service area. After that period, Holly Springs would sell water at a bulk rate to Fuquay-Varina for another five years, Andrews said.

Contact Beth Hatcher at 460-2608 or bhatcher@nando.com.