The deal will allow those not yet connected to mains water to have the necessary work done free of charge.
All of the affected properties will also have their water rates paid for.
There has been a wrangle between the Airport and the bay residents for a number of years over the issue.
The pollution to supplies was caused by chemicals used in the past by firefighters training on Airport land.
Bay residents recently met Airport representatives, health and environmental officials, lawyers, Jersey Water officials and both the St Peter Deputy and Constable to talk about how to sort out remaining matters.
Assistant Economic Development Minister Alan Maclean said a framework was being put in place for finalising arrangements for payment of water rates.
‘We want to be a good neighbour and we have reached an agreement that is fair and equitable,’ he said.
