Kansas City based Russell Stover Candies will pay a $585,000 civil penalty to settle alleged violations of the federal Clean Water Act at its facility in Iola, Kansas.
EPA investigators allege the company discharged acidic wastewater in Iola for years and damaged sewer lines and manholes.
The city says it spent $3.5 million upgrading its sewer plant because it was overloaded by wastewater from the Russell Stover facility.
The city also made repairs to 17 manholes that had corroded because of the acidity of the wastewater.
This week's settlement comes four years after the initial EPA audit.