In its post, the company IceHutRentals.ca said status card holders are not welcome.
The statement sparked outrage and calls to have the business shut down.
"The fact of the matter is there are people out there that do support a lot of what he's [Ice Hut Rental owner] saying," Nipissing First Nation Chief Scott McLeod said.
"That's kind of the ugly truth."
Ice Hut Rental's CEO Marc David Hyndman posted an apology on his company's Facebook page Tuesday.
"Everyone is welcome at our huts ... as long as Ontario 2017 fishing regulations are followed," he wrote.
"This is to ensure our fishing location is not abused and that every guest in our huts is on a level playing field."
Part of the reason there is frustration in the Lake Nipissing area is because Indigenous and non-Indigenous people are governed by different fishing regulations, according to Fish Bay Marina owner Samantha Simpkin.
"We all want the best for Lake Nipissing," Simpkin said.
"I think he [Hyndman] was just misguided in the statements that he made."
CBC News has contacted Ice Hut Rentals, but has not received a response.
Indigenous people are allowed to use large mesh-like traps called gillnets, while most others are not.
"I don't know what will relieve the tension that seems to be existing in the community," Simpkin said.
"Certainly stopping the gillnetting and having the wildlife population rebound is going to be a positive step."
The walleye population in Lake Nipissing is in serious decline, according to Ontario's Ministry of Natural Resources and Forestry.
There has been finger pointing in the region over who is to blame. Indigenous people have been accused of hurting the economy since they are allowed to use gillnets, according to McLeod.
"The economy does not belong to the non-Native society," McLeod said.
"It's there for everybody to make use of, and we have to be able to work with each other to ensure that the economy is beneficial for both sides of the fence."
Some people have suggested placing a fishing ban on the lake for a few years to allow the species to rehabilitate, but Simpkin does not want to see that happen.
"The fish that come out of the lake by recreational fisherman is a very, very small portion of what's harvested," Simpkin said.
"There's a lot of people who rely on the tourist industry here. A lot of people come to fish on Lake Nipissing, and closing fishing entirely for two years is going to put tons of people out of business."