The Bracks Government will enter a historic co-operative management agreement with the Yorta Yorta people covering public land, rivers and lakes in north-central Victoria.
The unprecedented partnership gives the up to 6000-strong Yorta Yorta people a say in the running of their traditional country, which covers land including the Barmah State Park, Barmah State Forest, Kow Swamp and parcels of public land along the Murray and Goulburn rivers.
Attorney-General Rob Hulls yesterday said the deal was a significant advance for reconciliation that had been achieved outside the native title process and one that provided a basis for future agreements.
"It is an Australian first and I think it can absolutely be described as historic. This is a precedent that can be followed right around Australia," he said.
Yorta Yorta elders council spokesman Henry Atkinson said that "at long last" his people had been recognised by government as traditional owners of their country.
"It is going to give Yorta Yorta the chance to preserve what is traditionally ours and it is going to make sure that Yorta Yorta will be in existence for a long, long time to come," he said.
Next week's state budget will commit $1.4 million over the next four years to putting the deal into effect.
Under the terms of the deal, an eight-member body comprising five Yorta Yorta and three government representatives will manage the designated lands and waters.
"The agreement recognises the Yorta Yorta people and the significant contribution that this community can make to land management," Mr Hulls said.
The joint body will advise the Environment Minister, who will retain ultimate decision-making responsibility.
The Yorta Yorta's long-term legal representative, Peter Seidel of law firm Arnold Bloch Leib-ler, said: "This is a red, black and yellow letter day in its importance.
"The Yorta Yorta's determination has prevailed and it is a credit to the Bracks Government, and in particular Rob Hulls."
It is believed that the joint Yorta Yorta-government body will consider works programs and land and water protection plans. But its establishment will not affect fees or access to parks, forests or reserves.
Mr Atkinson said the Yorta Yorta would seek to reach a similar agreement with the NSW Government covering the Millewa forest and wetlands.
Friends of the Earth and the Victorian National Parks Association welcomed the Victorian deal.
But they urged more talks about a jointly managed national park covering the Barmah Millewa forest.
The Barmah Cattlemen's Association could not be contacted for comment.
Last December, the High Court rejected the Yorta Yorta's native title land claim in a ruling that lawyers and Aboriginal leaders said could make it impossible for future claims to succeed in court.
In a five-two decision, the court upheld a Federal Court ruling that the tide of history had washed away the Yorta Yorta people's traditional rights.
The claim, first lodged in 1994, was Australia's longest-running native title case.
Local governments, farmers, tourism operators, timber and fishing interests, bushwalkers and beekeepers objected to the native title claim.
The State Government, which also opposed the Yorta Yorta claim, said after the ruling that it was committed to continuing to negotiate a settlement.