The nine-hole course lies directly north of Zionsville's center.
Owner Mike Morgan told the newspaper that he and his wife, Patty, wanted the course to remain as green space despite offers by developers. Only the town would guarantee that the property would not be turned into housing or another use.
The town is buying the course with cash it has on hand, and will spend some revenue from the course on upgrades.
The deal is to close in October.