The Environment Agency has accepted an enforcement undertaking, which also includes actions for Northumbrian Water to improve its operations and infrastructure.
It follows a sewage pollution incident involving West Wylam pumping station, investigated by the Environment Agency on February 18, 2015.
A blockage upstream of the pumping station resulted in raw sewage pumping into Park Burn, a tributary of the River Tyne, breaching its permit.
Investigations showed significant water quality impact at Park Burn, with sewage odour and litter visible, and ammonia and suspended solid levels above accepted levels.
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Surveys indicated there had been no significant impact on the invertebrate population in the burn, and there was no impact on the Tyne, due to the river size and its flow.
Northumbrian Water carried out an immediate clean-up of the polluted area after it was reported to them.
Donations will be made to the Tyne Rivers Trust (£134,500), Northumberland Rivers Trust (£59,500), Wear Rivers Trust (£48,500) and Tees Rivers Trust (£58,500), as well as £74,000 to Groundwork towards the Land of Oak and Iron Project.