The Government is setting aside a $12 million infrastructure grant in this month's budget to help Maori land trusts develop housing on ancestral land.
The Kainga Whenua infrastructure grant will be made available during the next four years.
It will help to establish water supplies and assist in the development of infrastructure from the main road to building sites, to supply power, and build roading and kerbs.
Associate Housing Minister Tariana Turia says the grant will make it possible for Maori to develop housing in rural areas where there is no roading, water supply or power.
She says individuals or groups of up to three people could use the funds to build on ancestral land.
Mrs Turia says the grant is an addition to loans already available for housing projects.
She says it is another step in advancing housing aspirations for whanau, hapu, iwi and Maori land trusts.