Hawke's Bay Regional Council is backing Tuhoe's plan to spend some of its Treaty settlement money on basic infrastructure.
The Bay of Plenty iwi signed its final Deed of Settlement at Parliament on Tuesday, which included an apology from the Crown and a $170 million compensation package.
The iwi says priorities for spending include providing water, sewerage and energy supply to communities around Te Urewera.
Tuhoe lead negotiator Tamati Kruger acknowledges basic infrastructure is usually funded by the Crown and local government.
But he says the iwi has waited long enough and is going to chip in to improve services for its people.
The Hawke's Bay Regional Council, which partly covers Tuhoe territory, describes the iwi's plan as a great initiative.
General manager of operations Liz Lambert says the cost of installing services in low-populated, isolated areas can be prohibitive for councils.
