Residents of the Auckland suburb of Devonport challenged a Treaty of Waitangi settlement at a public meeting on Saturday.
An agreement reached by the Government in November allows Ngati Whatua o Orakei to buy a 3.2 hectare block at Narrow Neck which is currently used by the Defence Force.
The terms of the sale would allow the hapu to develop the land after the navy finishes using it.
But many residents are against private ownership of the land and say they want the entire headland protected from commercial development.
About 300 residents attended the meeting held on the Defence Force land, to hear an explanation of the sale from the Minister for Treaty Negotiations, Chris Finalyson.
Mr Finlayson clarified that the neighbouring Fort Takapuna reserve and parts of the headland closest to the sea would not be sold and would be kept open to the public.
He said residents could make submissions to the Maori Affairs Select Committee which is handling the settlement.
Almost all of the people who spoke at the meeting opposed the sale and many left the meeting saying they remain angry at the situation.