The Crown says the demands of a small Far North iwi for a $200 million Treaty settlement are wholly unrealistic.
The Waitangi Tribunal has been holding a remedies hearing for Ngati Kahu - one of the five Muriwhenua tribes.
In closing submissions this week Crown lawyers said Ngati Kahu demands, if granted, would undermine all other Treaty settlements.
Much larger tribes including Ngai Tahi and Waikato Tainui have accepted settlements of $170 million.
The iwi, with about 8000 members, has asked the Tribunal to order the return of all SOE property land banked for the Muriwhenua claims.
It also wants the return of all Crown forests and lands, and dominion over its territory including fisheries - out to the 200-mile limit at sea.
The Crown has told the tribunal there is no need for it to order the return of SOE land because the Government is willing to return substantial amounts in a realistic, negotiated settlement.