The Rudd government is negotiating to take control of 19 rundown Aboriginal communities in exchange for federal funding.
The government will offer federal funding in exchange for the power shift - the local council in Alice Springs agreeing to a $50 million housing and infrastructure deal.
Indigenous Affairs minister Jenny Macklin says the money will also go towards employment and training for indigenous locals.
The deal isn’t expected to sit well with land rights advocates, but like the Northern Territory intervention, the agreement only applies to the camps and not the land they sit on.
The deal aims to clean-up the rundown settlements where it is common for up to 15 people to be sharing one house, and alcohol abuse and violence is rife.
The negotiations have come 12 months after the Federal intervention began in Aboriginal communities in the Northern Territory.
The Howard government took the radical step after years of stories of abuse and neglect in remote Aboriginal communities.
Saturday officially marked the one year anniversary of the intervention, and it was met with protests across the country.
Kevin Rudd told an ALP conference on the Gold Coast over the weekend that despite backlash, he remains committed to the intervention.
"Important progress is being made, with more police on the ground, people are feeling safer.”