The federal government has announced funding of $10-million for a boarding school on the Tiwi Islands, north of Darwin.
The funding will be provided under a so-called Shared Responsibility Agreement, that will require parents to ensure good school attendance.
The Indigenous Affairs Minister, Mal Brough, announced the agreement during a visit to the Tiwi Islands Thursday.
Mr Brough says traditional owners are also negotiating with the federal government on another agreement covering home ownership and commercial business development on Aboriginal land.
He says it would be the first such agreement in Australia.