A new business development will be getting water and fire services from the City of Regina — even though it's not within city limits.

The Sakimay First Nation will be receiving the services for a new planned development on land west of Regina.

On Monday, Regina city council unanimously approved the terms of the agreements, which will see service provided to the first 16 hectares developed west of Pinkie Road and south of Dewdney Avenue.

Mayor Michael Fougere called the move a "landmark decision" for supporting a First Nation development outside the city for the first time.

"I have nothing but good things to say about what's being done," he said at the meeting.

The first stage of development will see an Esso and Tim Hortons built in an area known as the Saulteaux Crossing Business Park.

A motel, office building, and possible convention centre will also be built on the land.

The decision may set a precedent for the City of Regina.

"Flexibility and innovation is obviously very important in moving forward together," Fougere said.

The land sits just outside city limits within the rural municipality of Sherwood near the Global Transportation Hub and along the soon to be built Regina Bypass.