A settlement was reached after years of negotiations between the Sakimay (SAHK'-ih-may) First Nations, the federal government and the province.
The claim was over a water control structure built on Crooked Lake, in the Qu'Appelle Valley east of Regina.
The Indian Claims Commission said in 1998 that there was no proper authorization to build the structure on the reserve or to flood reserve land.
The deal also lays out water management for the structure's future operation, which has been a contentious issue between aboriginals and cabin owners.
The Sakimay First Nations membership is to vote on the proposed settlement on Jan. 30.