Cochise County and the owners of Ramsey Canyon Inn have agreed to end the county's lawsuit against the property, according to a filing submitted Wednesday in Cochise County Superior Court.
The filing asks the court to dismiss the case "with prejudice," meaning it cannot be filed again.
Both sides agreed to cover their own legal costs.
The filing doesn't explain why the two sides decided to settle.
The county sued the Kepners last year, accusing them of holding weddings and other large events that broke the rules of their special use permit.
That permit only allows the property to operate as an eight-room bed and breakfast.
A judge later ordered the inn to stop hosting events while the case played out.
After the county sued, the Kepners filed an $18.5 million claim against the county, saying the lawsuit hurt their business and caused a wave of cancellations.
The property was also listed for sale in November for $1.5 million, according to a real estate listing. It's unclear if that listing is still active.
KGUN 9 will update this story as more details come in.