HALIFAX -- The Nova Scotia government has agreed to just over $3 million in funding to assist with the transitional costs associated with the dissolution of the town of Hantsport.

Municipal Affairs Minister Mark Furey says the money is contingent on the approval of the dissolution by the Nova Scotia Utility and Review Board.

The details of the agreement are in a letter of intent that will be presented as evidence at the March 23 hearing of the review board.

Hantsport applied to the board last May and if the dissolution is approved a new municipal structure will take effect July 1.

Furey says the process will move ahead despite a rejection of the letter of intent by Hantsport council on Thursday.

He says the letter of intent has been accepted by the Municipality of West Hants, which could be part of an approved merger.