Nova Scotia's municipal affairs minister signed an agreement Friday with a municipality and three towns in Pictou County that pledges more than $27 million from the province if they amalgamate.

Zach Churchill said this is likely the most money the province has ever put towards an amalgamation or dissolution, chiefly because this one involves four municipal units: Municipality of the County of Pictou, New Glasgow, Stellarton and Pictou.

"I've been encouraged by the leadership and courage of the municipal councillors and wardens and mayors in that area to really be forward looking and to do what they believe is necessary to make their community viable and successful moving forward," Churchill said in an interview.

The municipality and three towns filed a conditional application to amalgamate last summer with Nova Scotia's Utility and Review Board.

Churchill said this is one of the few cases where towns and municipalities have come together "proactively." He said amalgamations usually happen when one municipal unit is in financial crisis and needs to join another.

$27 million over five years

Officials from all four units were on hand Friday in Pictou to sign the letter of intent with the province.

If amalgamation goes through, the new municipality will be in line for $15.2 million over five years for infrastructure, investment and operating costs for roads. The money will also pay other bills that come along with the transition.

Equalization funding will stay the same for five years. The four municipalities will receive the funds they're currently in line for, totalling $11.9 million.

The agreement is effective Nov. 1, 2016, if amalgamation proceeds.

Ron Baillie, the warden for the Municipality of the County of Pictou, said he was "very honoured" the minister met with him and the other three towns today.

"I think it's a step in the right direction," Baillie said.

What happens next

Baillie said the agreement will go to the Nova Scotia Utility and Review Board, and a series of steps will follow:

The municipality and towns will start presenting information to the public on what this new municipality would look like.

Hearings will start in March 7.

On May 28, a plebiscite will take place in each of the four units.

Councils make the final decision to move forward.

After June 20, the UARB will make its final ruling.

Baillie said while councils make the final decision, he doesn't believe any will go ahead if residents vote against amalgamation in a plebiscite.

He said if amalgamation does take place, there will be a drop in taxes because joining together will create efficiencies.

Friday's $27-million agreement will be just one factor that's considered by residents when they cast their votes, Baillie said.

But Churchill isn't sure the money will help residents decide.

"I think the primary question they're gonna ask themselves is around the sustainability of their communities and how they need to position themselves to adapt to the challenges we all face as a province," Churchill said.