WOUNDED KNEE, S.D. — Ever since American soldiers massacred men, women and children here more than a century ago in the last major bloodshed of the American Indian wars, this haunted patch of rolling hills and ponderosa pines has embodied the combustible relationship between Indians and the United States government.

It was here that a group of Indian activists aired their grievances against the government with a forceful takeover in 1973 that resulted in protests, a bloody standoff with federal agents and deep divisions among the Indian people.

And now the massacre site, which passed into non-Indian hands generations ago, is up for sale, once again dragging Wounded Knee to the center of the Indian people’s bitter struggle against perceived injustice — as well as sowing rifts within the tribe over whether it would be proper, should the tribe get the land, to develop it in a way that brings some money to the destitute region.

James A. Czywczynski of Rapid City is asking $3.9 million for the 40-acre plot he owns here, far more than the $7,000 that the deeply impoverished Oglala Sioux say the land is worth. Mr. Czywczynski insists that his price fairly accounts for the land’s sentimental and historical value, an attitude that the people here see as disrespect.