The Government has made a $5 million payment to the Moteuka iwi Ngati Rarua Atiawa for past rental losses on the Whakarewa Lands.
The Minister of Maori Affairs, Pita Sharples, signed a memorandum of understanding with the iwi at Parliament on Wednesday.
He says the reserves were formerly managed under a perpetual lease under which less than fair rentals were paid to the Maori owners.
Dr Sharples says the payment will boost the iwi's ability to better manage and develop the Whakarewa Lands.
The payment is not a Treaty settlement.