West Arnhem's Warruwi community has taken control of primary health care in the region.
The arrangement will see the Red Lily Health Board assume management of Warruwi Community Health Care, the primary health care clinic in Warruwi.
The Red Lily Health board is comprised of representatives from of Warruwi and other First Nations groups, including Minjilang, Gunbalanya, Jabiru and surrounding homelands.
Welcoming the local decision making announcement, Red Lily Health Board chair Reuben Cooper said the structural change to healthcare services in the region was a positive step towards self-determination in West Arnhem.
"The transition of Warruwi represents another major step for the people of West Arnhem, in having greater control over their own health and the related services," he said.
"Red Lily has had great support from the wider ACCHO sector, including from AMSANT, Mala'la, Miwatj and the Katherine West and Sunrise Health Boards."
Mr Cooper said health service reform is necessary throughout other West Arnhem areas.
"Work on the transition of the remaining West Arnhem health centres will continue to be a goal for the Board," he said.
"Red Lily will continue to work to improve the health and wellbeing of the people of the West Arnhem region."
The arrangement between the Red Lily Health Board was reached between other healthcare stakeholders including the Northern Territory Primary Health Network, the Northern Territory Government and the Federal Government.
Northern Territory Chief Minister and Minister for Health Natasha Fyles said self-determination of First Nations communities in West Arnhem was at the core of the agreement.
"Local Decision Making is the Territory Labor Government's commitment to provide opportunities to transfer government service delivery to Aboriginal people," she said.
"Increasing community involvement in the planning and delivery of health services brings additional health benefits to local residents.
"This is all about putting the rights of remote communities first and giving Aboriginal Territorians access to appropriate health care which suits their needs."
After being founded in 2011 to empower West Arnhem's Aboriginal people, the Red Lily Health Board has always possessed a long-term vision of establishing a regional Aboriginal Community Controlled Health Service.
Northern Territory Member for Arafura Lawrence Costa said the agreement for Red Lily to become the operator of the remote regions primary health care service acknowledges the long-held desire of the Warruwi community.
"We know how important it is to have the very best health care accessible to Territorians, whether they live in the bush, or in the city," he said.
"The transition to the Red Lily board will provide the community with local decision making opportunities."
The decision making transfer from Warruwi Community Health Care to the Red Lily Health Board comes after the successful transition of the Minjilang Primary Health Care Centre to Red Lily in July of last year.