An historic land agreement will accelerate housing availability in Port Hedland and provide local Aboriginal people with a strong stake in the town's future.

Planning and Infrastructure Minister Alannah MacTiernan signed an agreement with the Kariyarra Mugarinya Joint Venture, which allocates almost 12ha of prime residential land in Port Hedland to its traditional owners.

"There is a critical need for housing in Hedland and this agreement will help deliver approximately 140 dwellings, as well as provide training, development and ongoing employment for the indigenous population," Ms MacTiernan said.

"Under the agreement, the Kariyarra Mugarinya Joint Venture will acquire the Port Hedland land and traditional owners will provide Native Title clearances for other land development in Port and South Hedland to proceed.

"This agreement provides an opportunity to further weave the indigenous community in the economic fabric of the Hedland community through land development."

Central Kimberley-Pilbara MLA Tom Stephens said the agreement would result in significant improvements in residential infrastructure in Port Hedland.

"This agreement has the potential both to help meet Hedland's housing demand and create more jobs and opportunities for local Aboriginal people," Mr Stephens said.

"The Government will continue to work with the Kariyarra and Mugarinya people to take advantage of these opportunities."