But protests from local residents and environmental groups suggest the changes are not that simple.
Two petitions have been created by residents in protest at the plans for the 45-hectare reserve. One of them opposes the impact on local wildlife, while the other is worried about the removal of precious parkland in the city.
The Labour Party originally supported the bill, describing it as a win-win because it helped iwi while allowing more houses to be built. It has now changed its position, and describes the legislation as a "land grab" which will swallow up much-needed open spaces in an increasingly populated city.
"If we take away the parkland for future generations, where will the children play?" Labour's Auckland issues and housing spokesman Phil Twyford spokesman said.
His party has come up with an alternative proposal in which Ngati Paoa is offered 11 hectares of land at the nearby Tamaki Regeneration Project development for housing, instead of the reserve land. The iwi would also be given co-governance of the Pt England Reserve.
Smith has dismissed Labour's proposal, saying that it would be moving Ngati Paoa away from their ancestral land and would lead to fewer houses.
New Zealand First also opposes the bill. Leader Winston Peters has said that it was "nibbling away" at rare reserve land which could never be claimed back.
The Green Party, on the other hand, is in a difficult position. The party is concerned about a New Zealand dotterel nesting ground on the Pt England coastline, which is in the exact location of the proposed housing development. But it also supports Ngati Paoa's settlement. As a result, it will abstain on the vote if it comes up this week.
The Greens' conservation spokeswoman Eugenie Sage said most Treaty bills were celebrated, but this one had only led to division - between the community, iwi, conservation groups and others.
Responding to the environmental concerns, Smith has said that dotterel moved their nesting sites every year and the housing construction would not impinge on their space.
Forest and Bird regional manager Nick Beveridge said the dotterel habitat was gradually being affected by beach users, urban development, and over the longer-term, rising seas.
Inland nesting grounds like the one at Pt England were precious and increasingly rare, he said.
The Ngati Paoa Iwi Trust Board - which could not be reached for comment - says it will repatriate the birds to another site, though conservationists say that is an untested plan with no certainty of success.
Save Our Reserves chairwoman Julie Chambers, whose group is behind one of the petitions, said she supported Ngati Paoa's settlement and the need for more homes in Auckland.
"But there are 20,000 more people coming into this area in the next five years ... and those people will desperately need open space for children to play and for sports."
By making the changes through a Treaty bill, there would no consultation with the community over major changes to the land, she said.
What does the bill do?
• Provides commercial redress for Ngati Paoa's Treaty settlement
• Rezones 12ha of Pt England reserve for 300 new houses. It has been suggested that 20 per cent pf these could be affordable housing, 20 per cent social housing, 60 per cent privately sold
• Requires the Auckland Council to allocate another 3 hectares of the reserve for playing fields
Where do the parties stand?
FOR: National, Maori Party, Act, United Future
AGAINST: Labour, New Zealand First
ABSTAINING: Greens
