The Crown will pay Rangitane $32.5 million as part of a Treaty settlement that has taken almost 30 years to complete.
The deed of settlement between the government and the lower North Island iwi was signed today in Dannevirke.
The iwi was left virtually landless by Crown actions in the 19th and early 20th centuries.
Treaty Negotiations Minister Chris Finlayson said today's signing marked the beginning of a new relationship with the Crown.
The Crown will also apologise to Rangitane, which will be given the opportunity to buy Crown properties and part of the Ngaumu forest near Masterton.