Penhold is preparing for future growth.
The town has been working with Red Deer County on an annexation proposal that would add about 1,200 acres to the east and northeast.
An intermunicipal development plan steering committee has been formed to hammer out the details of an agreement on how the lands will be developed. Town staff have also been meeting with area landowners affected by annexation.
County council approved the annexation in principle on Tuesday after receiving the formal annexation application.
Mayor Jim Wood said annexation will benefit both municipalities.
“I think it’s important, first of all, that our neighbours are able to be successful,” he said.
A joint public open house has been scheduled for Nov. 23 to give residents a look at how the town expects to develop the land in the long term.