As part of the out-of-court deal, a disclaimer featuring the word "fictionalised" will run ahead of the show. No further details of the agreement will be made public.
Rinehart's lawyers successfully applied to the Supreme Court to be given a copy of the concluding episode of the series before its scheduled airing tonight.
The Supreme Court later took the unusual step of sitting on a Saturday to resolve the dispute before the show aired.
Australia's richest woman sought to determine whether the drama is defamatory in its portrayal of her relationship with her late father, Lang Hancock - played by Kiwi Sam Neill - and his wife Rose, a former housemaid Rinehart employed to care for her father after her mother died.
He ordered Nine Network to hand over a DVD of the episode to be viewed only by Rinehart, her senior and junior counsel and a number of solicitors.
Nine's A Current Affair programme on Thursday night asked producer Michael Cordell: "Did you make this stuff up?"
"We're making a drama, we're not making a documentary," Cordell replied.
Entertainment reporter Peter Ford was also interviewed about House of Hancock and described it as a "ripping yarn". "This is a big explosive Dallas-type drama and a lot of it we didn't have to make up, a lot of it is on the public record," Ford told ACA.
Rinehart's lawyers seized on the ACA segment as evidence much of the action in the drama is fiction.
"Mr Ford is further quoted as saying via other media after viewing the show that the second show contains 'an even more explosive conclusion this Sunday', and that it is 'must-see television on Sunday night, except for Mrs Rinehart, she should definitely make plans to go out to dinner next Sunday night'."
The legal letter also included quotes from Ford, who has seen both parts of the series. "They make her look like an obsessed, vindictive shrew," Ford said. The second episode covers the legal battle between Rinehart and Rose Hancock over Lang Hancock's estate.
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