A major new Indigenous Protected Area has been formally dedicated in south-central Arnhem Land, with Traditional Owners celebrating the protection of more than 1.6 million hectares of culturally and environmentally significant Country near Bulman.

The Mimal Indigenous Protected Area will be managed by the Mimal Land Management Aboriginal Corporation and cared for by local Aboriginal rangers, including the newly established Mimal Women's Rangers.

Home to threatened species such as the northern quoll, black-footed tree-rat and Gouldian finch, the area also contains important cultural sites, including rock art, dreaming tracks and sacred places connected to ancestral beings.

The new protected area expands Arnhem Land's network of Indigenous-managed conservation estates, linking with the Warddeken, Djelk, South East Arnhem Land and Arafura Swamp Indigenous Protected Areas and adjoining the Wongalara Sanctuary.

Together, they form one of the largest Indigenous-owned conservation corridors in the Northern Territory.

The dedication was marked by a community celebration, recognising years of work by Traditional Owners to secure formal protection for the area and strengthen local stewardship of Country.

Remote Communities Envoy and Member for Lingiari, Marion Scrymgour, said the declaration highlighted the value of Traditional Owner-led land management.

"Traditional Owners have managed their country since time immemorial, and this IPA showcases traditional practices and knowledge can complement modern land conservation techniques," Ms Scrymgour said.

"This dedication is a huge win for the local community as it will deliver long-term economic benefits while also protecting culture and country for the generations to come."

Minister for Indigenous Australians Malarndirri McCarthy acknowledged the community's efforts in achieving the designation.

"I congratulate the Mimal Land Management Aboriginal Corporation and Traditional Owners on the hard work undertaken over many years to secure the dedication of this IPA," she said.

"This new IPA is cared for by the Mimal Rangers and the newly established Mimal Women's Rangers, which were created under our expanded Indigenous Rangers Program."

Indigenous Protected Areas are managed by Traditional Owners and play an important role in conserving biodiversity while creating employment opportunities and supporting cultural, social and economic outcomes for First Nations communities.

Environment Minister Murray Watt said the new IPA would provide lasting benefits for both people and Country.

"Congratulations to the Traditional Owners and community for the dedication of this IPA adding to the Indigenous Protected Areas estate and Australia's National Reserve System," he said.

"The Mimal IPA in the Arnhem region will create employment opportunities and deliver lasting social and economic benefits for communities."