The Northern Territory Government will tomorrow sign a memorandum of understanding that will pledge to work towards a treaty with the Indigenous peoples.

Chief Minister Michael Gunner says his government stands ready to negotiate a "Northern Territory Treaty" without Commonwealth involvement.

But what does all this mean, and how will it work?

What's a treaty?

A treaty is a binding agreement between two or more states or sovereign powers, usually reached after a period of negotiation.

It is similar to a contract in that the parties usually agree to take on certain responsibilities and duties that are legally binding, often being made between Europeans and the indigenous peoples of countries they have colonised.

The memorandum of understanding (MOU) will be signed at Barunga Festival in the Aboriginal community of Barunga, about 400km south-west of Darwin, and will outline a future treaty between Aboriginal traditional owners and the Government.

The MOU will be signed by Chief Minister Michael Gunner as well as all four Aboriginal Land Councils in the Northern Territory, namely the Anindilyakawa Land Council, the Central Land Council, the Northern Land Council, and the Tiwi Land Council.

Negotiations for a Territory-wide treaty for Indigenous people began in March when the land councils met with the Chief Minister in Alice Springs.

A working group was set up to develop the MOU, which will set out the principles and consultation process for the treaty.

It consists of the four land councils, Government representatives, and representatives from other peak Aboriginal organisations.

What happens if a treaty is made?

We're about to find out.

The MOU is expected to reveal some of those details, including reparations for the effects of colonisation which may be paid.

The Chief Minister has referenced a few possibilities:

There may be more than one treaty. Mr Gunner says it may need to be tailored to be relevant to the lives of Aboriginal people from different communities and regions, and isn't ruling out setting up multiple agreements

There may be more than one treaty. Mr Gunner says it may need to be tailored to be relevant to the lives of Aboriginal people from different communities and regions, and isn't ruling out setting up multiple agreements The treaty "at minimum should include an acknowledgement of the Territory's First Nation's people and their deep connection to their ancient lands", Mr Gunner says

The treaty "at minimum should include an acknowledgement of the Territory's First Nation's people and their deep connection to their ancient lands", Mr Gunner says Aboriginal organisations could legally be required to deliver government-funded services in communities under the NT's Local Decision Making Initiative

Aboriginal organisations could legally be required to deliver government-funded services in communities under the NT's Local Decision Making Initiative Instead of a one-off reparation paid out for past injustices and for Aboriginal land and resources, a treaty could mean that the Government provides money for education or housing, and the community takes responsibility for how it is delivered locally

Despite a lot of uncertainty about what the treaty will eventually look like, the Chief Minister says it would also include formal recognition of past injustices.

A delegation in Uluru watches as the Statement from the Heart is read in May 2017. ( ABC News: Stephanie Zillman )

Why now?

The signing of the agreement will coincide with the 30th anniversary of the historic Barunga Statement.

At the 1988 Barunga Sport and Culture festival, then-prime minister Bob Hawke was presented with the Barunga Statement, which was a declaration of self-determination and a call for a treaty.

In response, Mr Hawke promised a nationwide treaty with Indigenous Australians, but that never eventuated.

The policy was later abandoned in favour of a policy of reconciliation, and to this day, the Barunga Statement sits in Parliament House in Canberra.

The 1988 Barunga Statement is kept at Parliament House in Canberra. ( Supplied: Australian Parliament House )

The calls for state-based treaties are part of a national conversation; there's a push for a treaty between the Federal Government and Indigenous Australians, embodied in the Uluru Statement from the Heart, which called for a Makaratta (treaty) and an assembly of First Nations people advising Parliament.

The Uluru Statement was the end point of six months of consultations commissioned by the Federal Government to determine whether constitutional change was supported by Aboriginal and Torres Strait Islander people.

Sorry, this audio has expired 'PM has broken our hearts': Noel Pearson

Hundreds of influential Indigenous Australians attended a three-day summit at Uluru last year, and a majority endorsed a referendum to establish a permanent Indigenous advisory body.

However, the Federal Government has rejected that idea, saying that it would consider the calls for a treaty and a truth and justice commission, but would not proceed on a referendum to establish an Indigenous advisory body in the constitution.

Prime Minister Malcolm Turnbull dismissed the proposal, issuing a statement saying: "the Government does not believe such a radical change to our constitution's representative institutions has any realistic prospect of being supported by a majority of Australians in a majority of states."

However, a treaty for the NT could still be a fair way off; the MOU symbolises a pledge to work towards a treaty, it's not the guarantee of a treaty.

The last MOU signed by the Gunner Labor Government was the Cities Deal, a partnership with the Commonwealth to invest in Darwin. A year later, nothing has come from that memorandum.

Prime Minister Malcolm Turnbull rejected the idea of an Indigenous advisory body in Parliament. ( ABC News: Mitchell Woolnough )

Will we need to hold a referendum?

No. A treaty shouldn't be confused with constitutional change.

The amending of the constitution seeks to recognise Indigenous Australians in the founding document of the nation of Australia.

A treaty seeks negotiation and agreement between two independent parties, separate from their domestic legal systems.

So the NT's treaty will depend on who is in government.

The treaty being proposed would be between the Gunner Labor Government and the Territory Land Councils.

If a new Government were to come to power, it would be able to scrap the agreement if it wanted to.

The leader of the NT Country Liberals Party, Opposition Leader Gary Higgins, says his party — which currently has only two elected members — supports Indigenous Territorians' pursuit of a treaty.

But he said the CLP would need to see more detail in the MOU and conduct their own consultation process.

What about a nationwide treaty?

Last Saturday marked the first anniversary of the signing of the Uluru Statement from the Heart.

While a national treaty has not eventuated, state-based treaty processes are also underway in Victoria and South Australia.

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