Matakana iwi are one step closer to reclaiming ownership of Panepane Point from local government after having it confiscated in 1863.

Western Bay of Plenty District Council furthered talks yesterday to hand back ownership rights to iwi after taking over the title from the harbour board, following the 1989 local government reforms.

Western Bay of Plenty District Council has approved the preparation for a Draft Reserve Management Plan for Panepane Point, looking to hand back ownership to the Matakana iwi.

WBOPDC Strategy and Policy committee members approved the preparation of a Draft Reserve Management Plan for Panepane Point to be reported to the new committee (appointed from next month's local body elections) early next year.

The Western Bay council says Matakana hapu and Ngai Te Rangi iwi have been involved in detailed discussions regarding future ownership of the 200 ha piece of land, a section of Matakana Island opposite Mauao on the Tauranga Harbour entrance, since early 2012.

In 1863, Nga Te Rangi's customary ownership was extinguished by declaration of the Tauranga District under the New Zealand Settlements Act 1863, as a confiscated district by order in council.

It is the two Maori parties' preference that the council transfer the land to the Ngai Te Rangi entity two years after the Reserve Management Plan is adopted, subject to the guarantee of public access and joint management with council.

Following the adoption of the plan, any transfer in ownership will require a process of public consultation, and this will influence the direction that councillors take in respect of ownership.

The best time for this is as part of the annual plan process for 2014/2015. This will allow sufficient time for the respective parties to complete the necessary actions regarding the governance structure and reserve management plan, says council.

Western Bay Mayor Ross Paterson says it is necessary to note no decisions are being made by council at this time in what is a two-staged approach.

This will see a joint governance/management approach via the Reserve Management Plan before a hearings process for the plan, including joint representatives of iwi and council on the panel.