A group of 80 Noongar people, represented by the South-West Aboriginal Land and Sea Council (SWALSC), lodged the Single Noongar claim in the court in September 2003.
It is one of the nation's largest, covering 193,956 square kilometres from Hopetoun in the south to north of Jurien Bay an area three times the size of Tasmania.
Federal Court judge Murray Wilcox ruled the Noongar people were the traditional owners of the whole claim area excluding offshore islands such as Rottnest and their society had been maintained since European settlement in 1829.
More than 100 Noongar people and their supporters cheered and clapped as Justice Wilcox ruled they still had native title of more than 6,000 square km of the area covering Perth and its surrounds.
It means they can exercise native title rights over land where native title has not been extinguished by "legislative or executive acts" such as freehold land.
The Noongar people can now use this land to live, to practice and teach traditional laws and customs, and to hunt, fish and gather food.
They can also conserve and control access to the land.
Justice Wilcox stressed his decision would not lead to "people's backyards" being taken away.
Claim 'not valid'
But only hours after the judgment was handed down, WA Treasurer and Deputy Premier Eric Ripper told parliament "the state government does not accept today's ruling".
Mr Ripper said there had been too much disruption to Noongar society for it to have survived in any meaningful way, and therefore their native title claim was not valid.
"The evidence clearly supported this argument," Mr Ripper said.
He said the ruling was totally "inconsistent" with the fundamental principles which guide the recognition of native title.
"It is only by appealing these inconsistent Federal Court decisions that we can achieve the necessary clarity at law," he said.
The government had 21 days to lodge an appeal, he said.
Shock at government response
SWALSC chief executive Glen Kelly said the court ruling was a long overdue recognition of the Noongar people's identity but said he was "astonished" by Mr Ripper's response.
"I am absolutely shocked that he would react in such a way," Mr Kelly said.
"We have no idea why the state is so vociferously opposed to Noongar people."
Mr Kelly said the Noongar people wanted to negotiate native title of the rest of the south-west claim area and avoid more litigation.