The settlement of Parihaka in Taranaki is being given $14 million to build a visitors centre to preserve its history of non-violent resistance.
The centre, funded from the Provincial Growth Fund, is also expected to create up to 130 jobs and help boost the local economy.
It will house taonga and an exhibition of the Parihaka story as well as providing a large space for wānanga, conferences and tour groups.
The historic site was attacked and occupied by Crown troops in 1881, and the Crown apologised in 2017.
Regional Economic Development Minister Shane Jones said the invasion caused "generations of grief" for the people of Parihaka.
"When the Crown apologised in 2017 for this shocking episode in our history, its sincerest hope was that Parihaka and the Crown could acknowledge their shared past, move beyond it, and begin to work together to fulfil the vision of peaceful co-existence that Tohu and Te Whiti described.
"It is now our hope that this investment will go some way towards achieving this vision. Parihaka remains a vital symbol of non-violent action and our shared heritage. All New Zealanders should know its story and this project will help tell that story," Jones said.
Treaty of Waitangi Negotiations Minister Andrew Little said the funding would help make the story of Parihaka accessible to more New Zealanders.
South Taranaki Mayor Phil Nixon said everyone needed to know and understand what happened at Parihaka and the centre would help rebuild the once thriving community.
"I am delighted for the people of Parihaka as they have waited a long time for this to happen," Nixon said.
"The investment comes at a time when the region is looking to support the local construction sector and is therefore particularly welcome. Locals helping locals with welcome support from government."