INDIANAPOLIS -- A dominatrix has agreed to not run her bondage and discipline business in Indianapolis' residential areas -- a deal that would end a two-year legal battle with the city.

Melyssa Donaghy (pictured, with glasses) operated what the city called a "sexual torture" business in her home in the Meridian-Kessler neighborhood. The city asking a court to close the business in November 2005, saying it violated zoning regulations.

Kobi Wright, an attorney for the city, said an undercover police investigation that year "made it very clear that it was an illegal sex business operating in a residential neighborhood."

Donaghy said over the last two years that her business was nonsexual, educational and promoted "a non-promiscuous lifestyle and respect for women." According to her Web site, she practiced domination and submission arts.

The agreement between Donaghy and the city will be formalized this week in court, 6News reported.