The council and 4 Trades Ltd, lessee of the Gore Camping Ground, have confirmed the termination of the existing lease and the closure of the camping ground.
All current occupants will leave the site by January 30, and the lessee will remove remaining property over the following weeks.
The lease itself will end on February 27.
Gore District mayor Ben Bell said in a statement he was pleased to hear the matter had been resolved.
"We are pleased to be bringing this matter to a close. The campground has been a long-standing concern with many members in our community, and we can now look forward to further community discussion about the best use for this site moving forward."
Gore District Council chief executive Debbie Lascelles acknowledged the uncertainty the closure has created for some staying at the campground.
"We understand this has been a challenging period for those affected. We want to thank occupants for the respect, patience and co-operation they have shown while these matters have been worked through. Our focus now is ensuring the transition is handled as smoothly as possible."
Operator Nicholas Irons confirmed a settlement agreement was reached but declined to further comment.
Gore Motor Camp’s lease was terminated in September following ongoing complaints about residents’ safety and the condition of the site.
At the time, Ms Lascelles said the campground had broken the rules laid down in the Reserves Act by allowing people to stay for longer than 50 days.
Ms Lascelles said the units were not fit for long-term tenancies.
"This means the protections people expect from the Residential Tenancies Act, such as insulation or minimum standards, do not apply.
"We do not believe the conditions at the campground are adequate for vulnerable people who end up living there long-term." — Allied Media
