More than 20 residents at an unfinished housing estate in Longford that had been deemed unsafe by the HSE have dropped their legal action against Longford County Council and the Department of the Environment.
The move follows discussions between the residents' solicitor Patrick Duffy from Carrick-on-Shannon and representatives of the local authority.
The council has now given an undertaking that it will take over the running of the Gleann Riada Estate outside Longford town.
Last year the HSE found there was evidence of carbon monoxide, methane, and hydrosulfite in the area and that the gases from the sewers were dangerous.
It is understood the council is spending almost €600,000 on roads, lighting, and public sewage lines in the estate.
However, a number of residents are still appealing to the Minister for the Environment for a Priory Hall-style solution that would address gas emissions within houses that are owned privately.