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Bywater was on loan to Derby County for a month to get around signing on problem and enabling to compete in his first game against Hull on the 12th August.
The latest Derby County signing has cost the club £350,000 and Bywater has signed on a 3 year deal.
Bywater was missing from Saturday's 4-3 loss to Colchester United and will hopefully be back in action for Derby County's next match against Sunderland at Pride Park on the 9th September.