The Hastings District Council has calmed the rough chlorinated waters with fish owners in Havelock North.
Town resident Gary Fargher, who lost many of his 40 fish this week, said he met the council and was happy with the outcome.
The fish are claimed to have reacted badly after the council added chlorine to the water supply in an attempt to deal with a low-level E. coli contamination.
Mr Fargher spoke highly of HDC water-services manager Brett Chapman, saying he had been "very good and sympathetic".
"I had a good chat with Mr Chapman and we have come to a settlement which I am very happy with," Mr Fargher said.
He declined to put a dollar value on the settlement.
"We also talked over what can possibly happen in the future and we have come to some agreement."
While Mr Fargher lost most of his fish, he said he still had nine.
He plans to empty his main pond, clean it out and start again, using the money paid by the council to buy some juvenile fish. As well, Mr Fargher has had an offer of fish from a reader of Hawke's Bay Today.
Margaret Marshall-Dugh wrote to the editor, saddened after seeing Mr Fargher's dead fish in the paper on Tuesday. She said she spent much time in her garden with her 200-plus goldfish.
"It was very sad to see Gary Fargher's dead fish," she wrote. "Tell Mr Fargher he can have some of my goldfish if he wants."
A council spokesperson said the HDC was negotiating with people who had lost fish and was looking for ways to prevent such a thing happening in future.
"Council is not under any obligation to compensate fish owners for their loss but will consider any reasonable requests on a case-by-case basis."