DELTA -- The first tentative land claim agreement in British Columbia's densely populated Lower Mainland was announced by negotiators Monday.

"The settlement of land claims and the negotiation of treaties in the Lower Mainland poses challenges not seen elsewhere in the province and scarcity of land is one of them," said Robin Dodson, the federal government's point man in the deal with the Tsawwassen First Nation.

The treaty would transfer ownership of the existing 290-hectare reserve, plus 427 hectares of provincial Crown land, located adjacent to the reserve, to the band. The Tsawwassen will gain governance rights over the area, save for 62 hectares that include parcels some distance away.

As well, the band will receive $10.1-million in cash, commercial fishing rights and the right to petition for removal of some of its new land from the province's agricultural land reserve.

The 300-member band's original motion, filed in 1993, claimed a much larger territory including most of suburban Richmond, Delta, Surrey, Langley, Pitt Lake and across the Strait of Georgia to the Gulf Islands, including all of Saltspring Island.

The deal would also carve out for the band a small but more permanent position in the Fraser River fishery.

"We are increasing the opportunities for commercial harvest by .05 per cent of the Canadian commercial catch. It's a modest increase," Mr. Dodson said.

The band's quota under its social and ceremonial fishing rights will be increased to represent population growth. Currently the allocation is negotiated every year. Under the deal the quota would be automatically assigned.

In addition, the government would give the band $1-million to increase its commercial fishing capacity through the purchase of equipment and licences in the marketplace.

The Tsawwassen band now must hold a referendum on the proposal before moving forward to final treaty negotiations, which Mr. Dodson said will likely take two years.

The province has negotiated a number of agreements in principle this year and the process is showing momentum, said Lydia Hwitsum, a political adviser with the First Nations Summit.

"There is definitely a move to be more creative, more open-minded to finding the path to reconciliation through treaties," she said.

Unlike the rest of Canada, most B.C. aboriginal communities never signed formal treaties to cede their land to European settlers.

It now has a handful of deals at the agreement-in-principle stage. Ms. Hwitsum said it is about the half-way mark in the process. Not a single treaty has been reached despite nine years of negotiations overseen by the B.C. Treaty Commission.

Still, she said the deal with the Tsawwassen is encouraging, considering the significant land and resource pressures in the densely populated area.

"There is good indication that progress is possible, given commitment from all sides of the table, and that negotiating treaties in urban settings can be attainable."