Two forestry blocks belonging to the Crown are to be given to Tuhoe as part of their Treaty of Waitangi Settlement.
The allocation of the whenua was introduced on Thursday as part of the Tuhoe Settlement legislation going through Parliament.
After an amendment to the settlement was made in Parliament, two Central North Island Forest sites, Waitehouhii and Korokoro o Te Huatahi, will be bestowed by the Crown.
Rentals from the forests will be used by the tribe to financially benefit Kaingaroa communities.
Tuhoe leader Tamati Kruger is praising the Crown's decision.
He said the iwi was pleased the sites have been recognised as culturally important to the communities of Kaingaroa.
Mr Kruger said rentals would mean they will have an annual income of between $62,000 and $70,000.
The Government says the land will not effect the larger Central North Island forestry deal which is currently being shared out by adjudicators in accordance with mana whenua allocation rules.
