The multi-billion investment in a new railway between Gothenburg and Borås is a major step closer to becoming a reality.
Despite the compromise increasing costs by four to six billion kronor.
The state has previously earmarked 43.5 billion kronor for the project, which will provide a double-track railway between the two cities.
However, Härryda Municipality, where Landvetter Airport is located, has long been opposed to the proposed route.
Now, Governor Sten Tolgfors, who was tasked by the government to mediate the conflict, has found a compromise. After a meeting on Wednesday, the parties have finally agreed on the main points.
It's not an agreement, but a decision to build this railway, says Johan Trouvé, CEO of the West Swedish Chamber of Commerce.
There's a proposal that all parties can buy into. In August, they'll move forward with the final details and then have a complete agreement to submit to the government by the end of August at the latest.
Station in Mölnlycke
The new railway to and from Gothenburg will have stations in Mölndal, under Landvetter Airport, and in Borås.
Part of the solution will simultaneously involve a branch line, where a station in Mölnlycke, the main town in Härryda, will be connected to the main line in both westerly and easterly directions.
This will result in increased costs of between four and six billion kronor, which the parties will have to finance themselves.
This is one of the issues that needs to be resolved before an agreement can be finalised, according to Sten Tolgfors.
"Most important in a long time"
Johan Trouvé calls the decision a historic agreement and praises Sten Tolgfors for working out the solution.
It's probably one of the most important meetings that have taken place in the county residence since the house was built in the 17th century, says Johan Trouvé.
This will open up the entire region, so for the business community, this is the most important decision in a very long time.