The Northern Territory Government has confirmed a Local Decision Making Agreement for East Arnhem Land's Blue Mud Bay Region after recent meetings with local homelands leaders.

The announcement coincides with the 14th anniversary of the High Court of Australia's decision to recognise sea rights in the Blue Mud Bay area.

The agreement paves the way for on-Country development in the region under a five year social compact plan, with joint responsibilities held by Territory Government and local community.

The area's local leaders and the NT government have identified eight priorities to support homelands for the Djalkiripuyŋu clans and families.

That includes building leadership, infrastructure and essential services, housing, community safety, on-country business and jobs growth, heritage protection, health and family wellbeing and education and early childhood development.

Djalkiripuyŋu Aboriginal Corporation director Djambawa Marawili said the deal recognised Traditional Owners' connection to Country in the region whilst supporting self-determination of East Arnhem Land's Yolŋu clans.

"It's really important to Yolŋu that we are living on our country - the song lines are here, the name of the country is here, the sense of culture is here," he said.

"It is really important for us to help people in government understand what we feel in our lives, and what we want for our people and our country."

Djapu clan leader Waka Munuŋgurr said the deal supported long-desired employment opportunities in the homelands.

"The people in our homelands have been saying for a long, long time that they want to set up businesses in the homelands and create jobs," he said.

"This Local Decision Making Agreement gives us the tools to do that."

In announcing the agreement, Northern Territory Chief Minister Natasha Fyles said the Djalkiripuyŋu people were best placed to make decisions about the region.

"This Local Decision Making agreement recognises the Djalkiripuyŋu leaders are the decision makers for their lands, seas, and people," she said.

(It) provides a unique partnership between the Territory Labor Government and important local organisations and service providers to progress a range of initiatives that will foster enterprise, sustainability and strengthening of services for the future."

Local Decision Making is a 10-year Northern Territory Government plan giving communities more control over their own affairs.

The Blue Mud Bay Local Agreement is the ninth of its kind in the Territory, with a further six agreements currently being negotiated.