The Government has agreed a $23.5 million settlement with the Atihau-Whanganui Incorporation (AWI) for the misuse of their land in the central North Island.
Associate Finance Minister Trevor Mallard said the settlement was a significant step towards achieving the vision of the original Maori owners of the land.
In 1902,40,894ha of undeveloped land owned by Maori between Ohakune and the mid reaches of the Whanganui River was vested in the Maori Land Administration Act.
It was supposed to be returned developed within 42 years (two 21-year lease periods).
Through a series of legislative changes it proved impossible for the Maori owners to reclaim the land until very recently.
In 1970 all of the leases were brought into one title under the AWI, but as the land was returned it was found to be in terrible condition.
Resuming the leases over the last three years and the capital expenditure required to bring them up to proper production has so far cost the AWI over $30m.
AWI chairman Dana Blackburn said today's settlement would go a long way to paying off that debt as well as allowing the incorporation to implement a significant farm development plan.
