The Tuwharetoa Settlement Trust and six other Tuwharetoa entities are now one of the largest landowners in the Taupo township after their purchase of 8500ha of Crown land around the Tongariro-Rangipo Corrections Facility.
The iwi collective paid about $20 million for land in the Hautu-Rangipo region, which includes the Hautu prison farm near Turangi.
The price paid for the forestry crop on the land is subject to commercial confidentiality.
The conditional sale and purchase agreement was announced yesterday by Corrections Minister Sam Lotu-liga and trust chairman Dylan Tahau.
Under the terms of the sale, Corrections will retain the prison buildings and ancillary buildings and lease the land under them, with about 700ha for a training farm, from the Tuwharetoa Settlement Trust.
The lease and access agreements are yet to be finalised.
The iwi group were granted the right to purchase Crown-owned land from Corrections in 2008, after singing The Central North Island Forest Collective Settlement deed.
The iwi partnership includes two major Tuwharetoa forestry trusts, Tuwharetoa farm trusts, and a collective hapu entity.
Mr Tahau said the deal had major strategic and commercial benefits for the iwi partners but, most importantly, the purchase saw the return of Tuwharetoa whenua (land).
"This is a great milestone for our iwi and we are really pleased that the partnership has been able to work closely to get to this point.
"There are several important wahi tapu (sacred areas) on the land, and two of our rivers, the Waiotaka and Tongariro, run through it also.
"Purchasing this property and agreeing a lease-back is a major benefit for Tuwharetoa, and will support our economic, social and cultural development," Mr Tahau said.
Mr Lotu-liga said he was pleased to be returning such important land to the iwi.
"The deal, which has been in negotiation since 2008, is an example of the co-operation between the Crown and iwi." The deal ends the Tuwharetoa Deferred Settlement Process, which was part of the 2008 Central North Island Treaty Settlement.
Corrections and the trust signed the sale and purchase agreement, which will be formalised on June 30.