An iwi of Te Arawa, Tuhourangi, is aiming to start building a new tourist attraction on the tribe's home turf near Mt Tarawera by the end of the year.
The tribe moved away from Mt Tarawera after it erupted in 1886 killing more than 100 people.
Tuhourangi has secured a 30-year lease from the Department of Conservation to use a cottage at Tarawera Landing Scenic Reserve.
The chair of the Tuhourangi Tribal Authority, Wally Lee, says the new initiative is a joint venture with Whakarewarewa Village Tours.
He says they aim to start constructing the new operation by the end of the year.
