Months after being sued, a small Massachusetts town has agreed to let a local Islamic group build a cemetery that some neighbors opposed. Under a deal approved this week, the town of Dudley will permit the Islamic Society of Greater Worcester to buy a long-idle dairy farm and build a 6-acre cemetery at the site. In exchange, the group won’t seek to expand the burial ground for at least a decade and will drop a lawsuit it filed against the town in July. The society sued Dudley after a town zoning board denied plans for the cemetery in June, saying...