A Waitangi Tribunal report says the Crown has broken commitments it made to a Wellington iwi - and breached Treaty principles.
The Port Nicholson Block Settlement Trust, which represents several iwi, brought an urgent claim sparked by the settlement process for Ngati Toa.
The trust said the Crown broke an undertaking not to offer property within its territory to Ngati Toa, apart from the central police station.
The tribunal has found the Crown guarantee was worth nothing.
It established the Crown did offer Ngati Toa the first right of refusal to buy state properties in Wellington, including in the central city.
However, it recommends the Crown review its offer to Ngati Toa, so no commercial properties in the central city are made available to it.
Ngati Toa is expected to initial a deed of settlement soon.