Christchurch City Council has bought a site in the Banks Peninsula near Akaroa described as nationally significant and of immense importance to local Māori.
The council paid $2.5 million for the Red House at Takapūneke which will be incorporated into a reserve.
Christchurch Mayor Lianne Dalziel Reserve said the council was working towards having the site acknowledged as being as significant as the Waitangi Treaty Grounds.
Real estate agent for the property, John Moyle, said the council was given the opportunity to buy the property about 18 months ago but did not approve the agreement.
A report prepared for council said the land the Red House was built on was once part of a major Ngāi Tahu flax trading village of chief Te Maiharanui who traded with whaling vessels from all around the world in the mid 1820s.