The federal and Northern Territory governments have taken direct control of 18 Aboriginal town camps in Alice Springs.
The camps are home to around 2,500 people, and had been under collective control of an Aboriginal council since the 1970s.
But they have become notorious centres for violence and drug abuse, housing is inadequate and they are often without running water or sewage.
The federal and Northern Territory governments have announced a plan under which they will jointly spend a total of $30-million to provide basic services.
They have also promised to set up hostel-style accommodation for visiting family and friends.
Eventually the federal government wants to allow indigenous residents to privately own properties in the camps.