The Crown has signed a Treaty of Waitangi deed of settlement with Heretaunga Tamatea, an iwi with about 15,900 members with interests from southern Napier to Takapau in Hawke's Bay.
Large scale land purchasing left Heretaunga Tamatea virtually landless.
The deed settles the iwi's treaty claims, Treaty Negotiations Minister Christopher Finlayson says.
"We can never fully compensate Heretaunga Tamatea for the Crown's past breaches of the treaty but this settlement gives the iwi a good base for a strong cultural and economic future," Mr Finlayson says.
The $100 million settlement provides acknowledgements, an apology and redress for the Crown's past actions and omissions.
There is a further $5 million for investment in Te Aute College.
Heretaunga Tamatea hold this money on trust as the sustainable future of Te Aute is for the benefit of all Maori.
The school was founded in Hawke's Bay in 1854. It has a strong Maori character and has produced many political leaders.
"One only has to read the list of Te Aute's notable alumni to discover what an immense contribution this school has made to Maori and New Zealand as a whole," Mr Finlayson said.
The settlement also includes the purchase of Kaweka and Gwavas Crown Forest land with the Ahuriri hapu.