An agreement signed between the province and the Cheslatta Carrier Nation is expected to guide reconciliation talks on issues including the 1952 building of the Kenney Dam in the northern Interior.
The dam and reservoir use a local lake and river system as a spillway, and the Aboriginal Relations Ministry says that has led to annual flooding and the destruction of more than 60 graves.
The ministry says band members regularly find skeletal remains along the shore.
Short-term watershed-restoration work on the First Nation's traditional territory near Burns Lake will receive a boost from $400,000 included in the deal.
Both parties have also agreed to discuss economic and environmental issues related to the development of natural resources.