Negotiations between the Crown and iwi over Whanganui land have reached a "crunchy hard bit", chief Crown negotiator Richard Barker says.
He spoke to Whanganui District Council on Wednesday, saying the Office of Treaty Settlements was active in this area at present.
An agreement in principle between the Whanganui Land Settlement Negotiation Trust and the Crown is expected by mid-2018. A settlement could be agreed a year later.
Mr Barker said the settlement would create a powerful new entity in the district, a post-settlement governance entity, essentially a trust, that would have assets and opportunities.
In the settlement the Crown would hand over cash, Crown property and the rights to purchase further Crown property.