Iwi in Tauranga and Invercargill will be given first right of refusal on some of the State houses in their areas that have been earmarked for sale.
In May the Treasury announced about 1140 Tauranga and 370 Invercargill State houses and tenancies would be sold or transferred to registered Community Housing Providers.
As part of Treaty negotiations, 115 house have been set aside for Ngati Ranginui to buy and in Invercargill three houses have been held for Ngai Tahu should it want to buy them.
The Minister responsible for Housing New Zealand, Bill English, said it was always the Government's intention to consult with Iwi.
"The right of first refusal is part of the Treaty settlement. A lot of iwi want the ability to get hold of Crown land (and) will get hold of land in their area as and when it becomes available."