A sheep station on Nuenonne Country, in the southeast of Tasmania, that produces around 50,000 kilograms of wool and 500 lambs each year has been handed over to the weetapoona Aboriginal Corporation.

A divestment ceremony was held at Murrayfield Station last Saturday, with the Indigenous Land and Sea Corporation (ILSC) transferring the 4,100 hectares of land on Bruny Island to the weetapoona Aboriginal Corporation (wAC).

The transfer of the station to wAC is the final stage of the land transfer which began in 2015, when the ILSC divested the farm to the wAC.

The wAC will manage the farming duties, sheep and wool production, and the onsite accommodation for school and university students, who use the farm for camping and Aboriginal education programs.

The station is also used by PhD students to study several species of rare birds and trainees completing their Certificate II and III in Agriculture.

Palawa Elder, Uncle Rodney Dillon, said the handing over of the land was a momentous day for weetapoona and the wider community.

"This divestment ceremony marks the final piece of the puzzle in the return of Murrayfield Station to our people," he said.

"This is such an important achievement for the community, and it has certainly come at the right time for us."

ILSC Group chief executive Joe Morrison said the board was honoured to transfer over the property.

"During our visit, the ILSC Board got to see first-hand weetapoona's operations and deepen our understanding of its aspirations for Country," said Mr Morrison.

"We wish them all the very best in their future endeavours, and we look forward to seeing their cultural knowledge and connection to Country continue to strengthen."

Michael Todd, who took over running the farm from his parents in 2019, said his family had formed strong connections with wAC and the local First Nations community.

"We look forward to continuing our care for the farm, animals, land and wildlife under weetapoona's management," he said.