Moose Jaw, Sask., is one step closer to having its first urban reserve. On Monday, the city signed a historic agreement with the Kawacatoose First Nation.

For the last six years, the First Nation has operated the Kawacatoose First Nation convenience store and gas bar on Caribou Street West.

The agreement today with the city and the Moose Jaw Police Service starts the process of making the land an urban reserve.

"The signing of these agreements is a historic move for the City of Moose Jaw," said Moose Jaw Mayor Deb Higgins.

"We welcome the opportunity to work with the Kawacatoose First Nation and look forward to the next steps unfolding in the process."

Once official, the property will be exempt from taxation.

Under the agreements signed Monday, the city will provide policing, fire protection, snow removal, as well as water and sewer services. The First Nation will pay for utilities and protective services. According to the city, the fee-for-service is calculated the same way as property taxes and is equal to the amount that would be billed for municipal taxes.

To gain urban reserve status, the agreement needs a governor in council order from the federal government, a process which is expected to take a few months.

"Kawacatoose First Nation is honoured to have a business located in the city of Moose Jaw, a city that has a mayor and council who value strong, forward thinking relationships with First Nations people. This represents a significant milestone for a prosperous and successful partnership that will be recognized throughout Canada," said Chief Dennis Dustyhorn.

Kawacatoose First Nation is about 150 kilometres northeast of the soon-to-be urban reserve in Moose Jaw.