The conflicting sections of Rup and Pakam agreed to end fighting and live together as Agar community.
The peace signed on Thursday came as result of previous peace talks, Benjamin Makuer Mabor, Minister of Local Government told Radio Good News.
He added that the peace initiative is a continuation of the previous peace meetings held in Rumbek town early this year.
Makuer described the peace initiative as good move that will pave the way for reconciliation among the conflicting communities of Rup and Pakam.
He said the two communities committed to abide with the laws that protect peace and the wellbeing of the parties.
Next week, the state government will invite all the youth of Western Lakes to Rumbek Freedom Square for final peace talks.