The Crown is paying $50.69 million to Te Wananga o Raukawa in Otaki to settle a Waitangi Tribunal claim by the tertiary institution.
The Government says the agreement acknowledges that it failed to provide set -up grants, as it did with mainstream institutions.
The money is to cover the cost of bringing buildings, plant, and equipment up to a standard to match other tertiary institutions.
It also provides for the current roll of Te Wananga o Raukawa and any growth during the next three years.
The Government says the signing on Wednesday of a deed of settlement brings to an end the 1999 Waitangi Tribunal wananga capital establishment claim.