The agreement - between landowners High Peak Borough Council and Derbyshire County Council - is supported by Nestlé Waters, who bottle the local mineral water under the Buxton brand. It protects Nestlé's right to draw underground mineral water, under licence from the Borough Council.

Consequently, the Buxton Crescent Hotel and Thermal Spa Company can now award an enabling contract to prepare the interior of The Crescent - a Grade I listed building - for the main redevelopment. The company was established by the development consortium of the Trevor Osborne Property Group, CP Holdings and spa operator Danubius Hotels, as well as the two councils.

The project will deliver a 79-bedroom, luxury spa hotel incorporating Buxton's Natural Baths situated over a mineral water spring; a thermal, natural mineral spa; eight specialist shops; the refurbishment of a pump room into a café and a visitor interpretation centre with integrated tourist information facilities.

Councillor Tony Ashton, leader of High Peak Borough Council said: "This exciting development will strengthen the growing reputation of our spa town as a major visitor destination."

The Borough Council's executive councillor for regeneration, Tony Kemp, added: "The visitor economy is of vital importance to the whole of the High Peak and this development will help boost employment and benefits far beyond Buxton."

The signing follows extensive negotiations, test drilling and careful archaeological investigations to establish the feasibility of the development. The first details of the Buxton project were unveiled in 2003 by the two councils and a consortium of developers.

In 2006, the Heritage Lottery Fund (HLF) awarded £12.5m (15.1m euro, US$19.3m) towards the total development costs while the remainder of the funding will be met by partners including the two councils and the development consortium. Details: www.highpeak.gov.uk