A central Manitoba Metis community has reached a $9.2-million compensation settlement with the province for flooding damages caused by diversion projects on the Churchill River.

"This is a very important day in the history of the Cross Lake community," Aboriginal and Northern Affairs Minister Eric Robinson stated in a press release.

"This historic settlement agreement provides community leaders with the tools they need to create a prosperous future for the people of the community and I commend everyone who worked so hard to realize this milestone."

The longstanding dispute dates back to April 1992, when the Cross Lake community council filed legal action against the province and Manitoba Hydro.

'This historic settlement agreement provides community leaders with the tools they need to create a prosperous future for the people of the community.'—Eric Robinson

The three parties agreed in April 2003 to sign an agreement-in-principle that would guide negotiations for a resolution.

It took another seven years but the settlement will go a long way to "provide the community with new means to continue to improve the quality of life for its residents," Robinson said.

The financial compensation, to be paid out over a 13-year period, includes provisions for the transfer of approximately 5,000 acres of land intended to help with the expansion of the growing community. A new resource management committee will also help the council in having a voice in natural resource activities in the Cross Lake trapline district, according to the news release.

Newly incorporated

The settlement signing coincided with an announcement that the community council has completed the process to incorporate under the Northern Affairs Act.

"Through incorporation, the community gains the powers and responsibilities of a municipality including a greater degree of autonomy," said Robinson.

"This authority will provide the community with new means to continue to improve the quality of life for its residents."

The community also celebrated the official opening of its new town offices and emergency services building, built with a $3 million in funding from the province.

Cross Lake is located approximately 520 kilometres by air north of Winnipeg. It is adjacent to the Cross Lake Cree Nation.