Ruapehu iwi Ngāti Rangi and the Crown signed a deed of settlement worth $17 million at an emotional ceremony at Raketepauma Marae.
The signing on Saturday settled the iwi's historical Treaty of Waitangi claims, Minister for Treaty of Waitangi Negotiations Andrew Little said.
"I would like to acknowledge the enormous amount of work that has been achieved by the Central North Island tangata whenua and the government to get us to this point," Mr Little said.
"Ngāti Rangi say that they have always been a friend of the Crown. Through this settlement the Crown aims to rebuild its relationship with Ngāti Rangi and reinforce that it is based on mutual respect and honour.