Gov. Lincoln Chafee signed a bill into law Friday that a court-appointed receiver said would save the Central Coventry Fire District.
The law extends the use of a state budget commission, which is used to help distressed cities and towns, to include fire districts.
The CCFD was under court order to liquidate on May 16. Receiver Richard Land told NBC 10 News that the law stops the liquidation process.
Chafee said in a news release that the fire district will have a balanced budget plan imposed on it to pay off debts. He said the budget will likely include tax increases, union concessions and the possibility of reduced services.