Treaty of Waitangi negotiation's minister Chris Finlayson believes an historic multi-million dollar deal reached with Tuhoe today will "satisfy everyone".
Central North Island iwi Tuhoe are set to receive $170 million when they are given co-management rights to the Urewera National Park later this year.
Finlayson said the deal was a "true reconciliation of interests" where everyone involved was a true winner.
"What we have tried to do is navigate a difficult and intractable, or seemingly intractable, historical issue and reach a resolution that satisfies everyone."
The park, located between Bay of Plenty and Hawke's Bay, will be overseen by representatives of the Tuhoe and the Crown. Te Urewera will have its own legislation and exist as a separate legal identity.
The offer also includes the implementation of a "social services management plan", where government agencies will work with Tuhoe to ensure better delivery of social services such as housing, education and health.
Finlayson said this new structure will allow the connection between Te Urewera and Ngai Tuhoe to be fully recognised for the first time since the Crown stole land was the iwi in the 19th century.
The Crown used "scorched earth" tactics, and was responsible for the execution of unarmed prisoners and the killing of non-combatants during struggles between the Crown and the iwi.
"Huge areas of the iwi's land were wrongly confiscated, and more purchased unjustly," said Finlayson.
"Military campaigns against Tuhoe prisoners and civilians were described even at the time as 'extermination', and the Crown employed a scorched earth policy in Tuhoe settlements in the Te Urewera."
Maori Party co-leader Tariana Turia said Tuhoe suffered the worst prosecution out of any Iwi during colonisation.
"The amount they are being given will never ever be what they should have got given what happened to them," said Turia.
Turia said the deal was a compromise for Tuhoe.
The Crown and Ng?i T?hoe will discuss the offer with neighbouring iwi, including Ngai Manawa and Ngati Whare who have existing Treaty settlement redress over parts of Te Urewera.