BARNSTABLE — The town of Barnstable has reached a multimillion-dollar settlement in its water contamination lawsuit against Barnstable County.

The lawsuit, filed last summer, stems from the contamination of the Hyannis water supply from chemicals used in firefighting foams at the Barnstable County Fire and Rescue Training Academy. The academy is located near a well field serving the water needs of 18,000 residents and businesses in Hyannis, Hyannisport and West Hyannisport.

Under terms of the agreement, the county will pay the town $2.95 million to reimburse it for capital costs, including costly carbon treatment systems, associated with the cleanup.

The payment will be spread over a period of 20 years, and will be in the form of debt service on a Massachusetts Clean Water Trust Bond taken out by the town. With interest, the total over the life of the payment will top $3.6 million.

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