An Auckland trust set up to conserve land known as the Fort Takapuna Historic Reserve has withdrawn its legal action against the Crown.
The Tamaki Reserve Protection Trust applied for a judicial review over wording in the Ngati Whatua Orakei Claims Settlement Bill which had its first reading in Parliament last week.
Chairman Micheal Pritchard says commercial redress to the hapu includes 3.2 hectares of land known as the Tamaki block, which the Navy currently uses.
He says a High Court judgement in 1999 made it clear the land is protected under both the Reserves Act and the Hauraki Gulf Marine Park Act.
Mr Pritchard says the judicial review aimed to challenge the Crown on points of law.
But he says the Government now intends to change two clauses in the Reserves Act which would remove the Tamaki block from reserve status.
He says the Trust will not give up the fight and will argue its case in front of the appropriate Select Committee.