The San Diego County Water Authority’s board voted Thursday to drop a lawsuit the water seller filed in August against two of its customer water districts that are trying to leave and the agency that gave them permission to do so.

After a closed-door deliberation, the Water Authority publicly directed its lawyers to enter into a settlement agreement with Rainbow Municipal Water District, Fallbrook Public Utilities District and the Local Agency Formation Commission or LAFCO – the boundary referees that agreed to allow two of the Water Authority’s customers to divorce from their water seller.