The law prevents North Hills Village from taking over the Deepdale Golf Club and making it a public golf course solely for village residents.
The new law says land in a groundwater protection area - which the golf club is in - can not be seized by eminent domain if the municipality plans to use the land for the same thing as the private owner.
Members of the Deepdale Club were threatening state and federal lawsuits to save their 175-acres from being seized by village officials.
The federal suit questioned the village's right to seize the property through eminent domain. The state case challenged the village's alleged abuse of zoning law to cut secret deals with private developers.