SA govt settles over Gillman land deal

South Australia is forking out millions of dollars to end a court battle over a controversial Adelaide land deal.

In 2013, 400 hectares was sold to Adelaide Capital Partners (ACP) without going to tender and at a price many considered to be well under the market rate.

Acting Premier John Rau says the settlement of up to $2.2 million dollars means Integrated Waste Services - which claimed it was locked out of the deal - will drop its High Court action, and ACP and IWS will have their legal costs covered.

ACP also has until November 1 to pay $45 million for the first 150 hectares, a deadline Mr Rau says provides an end to uncertainty over the deal.

"We get a drop-dead date where we're going to receive payment or we get to the position that all deals are off, the land comes back to the government unencumbered and we put it back out there," he told reporters on Tuesday.

The Gillman deal has caused the government considerable angst with SA's Independent Commissioner Against Corruption finding last year that two Renewal SA officials engaged in conduct that amounted to maladministration.

Commissioner Bruce Lander said the officials should have advised Treasurer Tom Koutsantonis to consider an open tender process and that a proper valuation should have been obtained.

But Premier Jay Weatherill and Mr Koutsantonis were cleared of any wrongdoing.

Mr Lander said Mr Weatherill had minimal involvement in the deal and while Mr Koutsantonis was strongly in favour of the proposed sale, he didn't act to intimidate public officers involved.

Opposition finance spokesman Rob Lucas called the Gillman deal a "dog deal" that kept getting worse for South Australians.

"They are handing over another $2.2 million despite the Gillman land remaining undeveloped and none of the 6000 promised jobs having been created," he said.