The Harrietta Hills Trout Farm produced 300 thousand pounds of trout per year in the Au Sable River.
A conservation group called Anglers of the Au Sable filed a lawsuit to shut the hatchery down in 2014.
They said the hatchery was polluting the river and getting fish sick.
On Thursday, both sides settled. The trout farm gets $160,000 and Anglers of the Au Sable will take over their lease next year.
Director Joe Hemming says the settlement is a win for the community.
“They’re gonna get a first class operation there at the hatchery devoted to educating and reaching out to the public,” Hemming says.
Hemming says they will turn the hatchery into a tourist attraction to teach the public about the river’s ecosystem. Anglers of the Au Sable will take over the lease on January 1, 2019.
Harrietta Hills Fish Farm could not be reached for comment.